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Fortunes flag for Perpetual

Lachlan Maddock
— 1 minute read

Perpetual Investment’s funds under management (FUM) have decreased by $1.1 billion over the last quarter as the market continues its move away from value managers.

The decrease was comprised primarily of $1.8 billion of net outflows from Australian equities, offset by market appreciation of $0.7 billion. 

Institutional investors accounted for $1.2 billion of outflows, while retail investors and intermediaries were responsible for $200 million and $400 million respectively.  

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Perpetual now has just $26.1 billion in FUM as of 30th September, compared to its peak FUM of $34.7 billion in March 2017. 

This is the 10th consecutive quarter of net outflows for the company, which went on a firing spree earlier this year in a desperate attempt to cut costs as consumers flocked to growth managers. 

Share prices fell 3.49 per cent on Monday and are down almost 40 per cent over the entire year, with shares now sitting at almost the same price as they did during the GFC. 

The decrease is the latest piece of bad news for the company, which saw its profits drop 12 per cent from the previous year in Q1 2019 and which has historically underperformed relative to benchmarks.

 

Fortunes flag for Perpetual
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