Perpetual’s AUM down in September

Oksana Patron

20 October 2022

Perpetual’s assets under management (AUM) dropped 1% compared to the prior period to $89.9 billion at the end of the September quarter due to negative market impacts and flows offset by positive currency movements.

Following this, Perpetual Asset Management International’s AUM was also down 1% to $68.5 billion due to net outflows which were offset by positive net inflows in global equities strategies and more favourable currency movements.

Chief executive and managing director, Rob Adams, said that “the overall net flows result was disappointing” and reflected the broader market sentiment towards equities, particularly in the US.

Adams described the September quarter as tough, with investment markets declining globally.

“Reiterating the comments I made last quarter, we believe the higher inflation and interest rate backdrop will continue into next year and while market movements impact the value of the assets we mange, this kind of environment continues to be well suited to our expertise in value-style investing,” he said.

In Australia, AUM was flat compared to the prior quarter and stood at $21.3 billion, with net outflows impacted by the loss of one mandate in the intermediary channel.

“Through this challenging environment for our asset management businesses, we are pleased that new client wins continue with $0.8 billion funded in the quarter and a further $0.3 billion expected to fund in October. While the pipeline remains positive, given the current environment, the timing of future flows remains uncertain,” Adams noted.

Perpetual Private’s Funds Under Advice also dropped 1% to $17.2 billion due to negative market movements, but were supported by positive net flows and new clients. Perpetual also confirmed that expansion of Jacaranda Financial Planning was on track with seminars in new markets leading to “new client conversations”.

Perpetual also reported the progress on its proposed acquisition of Pendal, with client consents tracking in-line with both parties’ expectations and the regulatory approval process having commenced.

“Assuming all the key conditions to the transaction are met, we are on course for targeted completion of the transaction by January 2023.”