Perpetual reports Q1 inflows for asset management division

Perpetual reported a solid start to the financial year 2025–26, with growth across all three of its operating divisions, supported by favourable market conditions and easing outflows.

CEO and managing director, Bernard Reilly, said the business achieved positive momentum across its asset management, corporate trust, and wealth management operations.

“It was a positive quarter for the business, with each of our three business lines reporting growth in assets managed, assets under advice or administration, largely benefiting from continued growth in the markets in which they operate,” Reilly said.

“In our asset management business, equity markets globally delivered strong returns through the period and this, along with a moderation in net outflows relative to the last few quarters, led to a robust uplift in our assets under management.”

During the quarter, Perpetual launched its third active exchange-traded fund (ETF), the Perpetual Diversified Income Active ETF (ASX:DIFF), which is attracting early investor interest.

The group also appointed a new CEO to lead UK-based fund manager J O Hambro Capital Management, while its US boutique Barrow Hanley recorded strong inflows into global equities.

Perpetual’s wealth management business, which remains up for sale following the termination of a deal with KKR at the start of this year, recorded a 2 per cent rise in funds under advice to $21.9 billion, underpinned by positive market movements and modest net inflows.

“We are progressing the sale of our wealth management business which, despite the uncertainty, delivered growth in funds under advice for the quarter,” Reilly said.

In the September quarter, total group assets under management rose 2.3 per cent to $232 billion, up from $226.8 billion at the end of June. Market gains and distributions of $9.2 billion more than offset $2.2 billion in net outflows and $1.7 billion in negative currency movements.

Barrow Hanley’s assets under management increased 5.6 per cent to $88.9 billion, supported by inflows into global value and ESG value strategies. J O Hambro’s total assets under management fell 2.8 per cent to $35.1 billion, reflecting net outflows of $2.3 billion from international and UK strategies, partly offset by positive markets.

Pendal Asset Management lifted assets to $44.7 billion, although it experienced $0.2 billion in outflows from an Australian equity strategy, while Perpetual Asset Management’s funds rose 2.5 per cent to $22.5 billion, driven by inflows into fixed income.

The corporate trust division also reported another quarter of growth, with total funds under administration reaching $1.29 trillion, up 1.2 per cent.

Managed funds services grew 6.5 per cent to $574.5 billion, supported by new custody client wins, while debt market services fell 2.7 per cent due to portfolio rationalisation by one client. Digital and markets assets under administration rose slightly to $572.8 billion, driven by fixed income and Treasury product growth.