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Corporate trust, wealth management businesses underpin Perpetual’s AUM growth

By Jessica Penny
3 minute read

Despite a “disappointing” quarter of net outflows, the firm has seen robust AUM growth.

In the three months to 31 March, Perpetual recorded net outflows of $5.2 billion in its asset management business, a “disappointing” development for the firm, according to chief executive officer Rob Adams.

Perpetual, however, boasted an upward bump of 6 per cent in its total assets under management (AUM) to $227 million, driven by stronger equity markets in all key regions, as well as favourable currency movements.

“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,” Adams said.

Breaking down the results of its asset management business, Perpetual reported that Barrow Hanley’s AUM increased by 8.6 per cent on the December quarter to $79.3 billion, driven by “favourable equity market movements of $4.4 billion”. J O Hambro Capital Management’s AUM was $40.4 billion, up 1.4 per cent compared with the previous quarter, while Pendal Asset Management’s AUM added 6.3 per cent to expand to $44.6 billion.

Perpetual asset management’s AUM was $21.4 billion, up 4.9 per cent compared with the December quarter, impacted by net outflows of $0.3 billion, while TSW’s AUM was $230.9 billion, up 7.4 per cent, with positive market movements ($1.6 billion) and currency movements ($1.4 billion) impacting the quarterly result.

Looking at its corporate trust business, the debt market services (DMS) division recorded FUA of $712 billion, down 0.4 per cent, while the managed fund services (MFS) division’s FUA was $486 billion, up 0.7 per cent.

The total FUA of Perpetual’s corporate trust was $1.2 trillion as at 31 March, flat on the previous quarter.

Elsewhere, the firm’s wealth management business experienced a 5 per cent growth in its funds under advice (FUA) to $20 billion as at 31 December, underpinned by positive market movements.

“Through the quarter, all three of our businesses – asset management, wealth management and corporate trust – demonstrated their strength, underpinned by positive market dynamics in the main markets in which we operate,” Adams explained.

“In corporate trust, our digital service offerings continue to grow and both our debt markets services and managed funds services businesses remain resilient in a higher interest rate environment.

“We continue to progress the integration of Pendal Group and we are ahead of plan to deliver our targeted synergies of $80 million in run-rate synergies by January 2025,” he continued.

Adams further revealed that, in recent weeks, Perpetual has won more than $3.5 billion in new client monies and additional flows from existing clients, which are expected to fund over the next six months.

As part of its update, the firm also revised its total expense growth guidance to be in the range of 32 and 34 per cent for the 2024 financial year.