Perpetual’s Adams reinforces positives ahead of Strategic Review

Perpetual Limited will announce the outcome of its Strategic Review on 8 May as the company’s chief executive and managing director, Rob Adams continues to argue the positive dynamics flowing from the company’s acquisition of Pendal.

Adams and the Perpetual board initiated the strategic review in early December, last year, in the face of market and shareholder pressure around the value of separating the company’s Corporate Trust and Wealth Management businesses.

Release of the Strategic Review is expected to reignite discussion around that proposal.

However, in releasing Perpetual’s third quarter business update, Adams emphasised the strength delivered by all three of the businesses – Asset Management, Wealth Management and Corporate Trust.

“In Asset Management, stronger equity markets in all key regions, as well as favourable currency movements, saw a 6% uplift in our Assets Under Management (AUM), offsetting what was a disappointing quarter of net outflows of $5.2 billion,” Adams said.

“Importantly, the continued overall growth in AUM, despite net outflows, highlights the benefits of our global, diversified, multi-boutique model and exposure to a range of equity markets, regions and currencies, as well as client channels,” he said.

Adams noted that in Corporate Trust Perpetual’s digital service offerings had continued to growth with both Debt Markets Services and Managed Funds Services remaining resilient.

“In Wealth Management, our Funds Under Advice (FUA) grew further, supported by stronger equity markets through the quarter,” he said.

The update said that Perpetual Wealth Management total FUA was $20 billion as at 31 March, up 5% underpinned by positive market movements of $0.9 billlion, albeit net flows were flat.