Perpetual has posted an increase in funds under management (FUM) for the three months to 31 March owing to a slowdown in the rate of outflows as the trend for institutional and retail investors to flee equities in favour of other safe havens dampens.
Perpetual's total funds under management for the first quarter of the year increased 3.5 per cent quarter-on-quarter to $23.7 billion. The total average for the period was $23.5 billion.
The fund manager said that increase in FUM was the result of $1.6 billion of positive market returns, and $800 million of new outflows.
Of the outflows, $350 million was attributed to the foreshadowed first return of capital to investors in a suite of mortgage funds, around $250 million from low margin intuitional cash style products, and around $225 million from the Industrial Share Fund.
However, Perpteual's net inflows still remain at negative levels.
"Clearly, for the equities class, there has been a slowdown in outflows," a Perpetual spokesman told InvestorDaily.
The slowdown is expected to continue, he said.
Perpetual is pressing on with its three key priorities: to redefine growth strategy, implement cost reductions and increase sales and distribution.
"We expect to start implementing the outcomes of the strategy refinement and cost review process prior to the end of the current reporting period, and this week we announced two initiatives that show positive momentum is building," Perpetual chief executive and managing director Geoff Lloyd said.
The fund manager recently announced that both its diversified income fund and the Australian share fund have been added to Colonial First State's FirstChoice platform and the early delivery of Perpetual Private's Super Wrap.
