Perpetual repositions asset management leadership amid $8.1bn outflows

24 August 2023
| By Laura Dew |
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Perpetual has announced leadership changes to its asset management executive team as it reports FY23 net profit after tax (NPAT) of $59 million.

In its full year results for FY23, the firm said net profit after tax was $59 million, 42 per cent lower than in FY22.

This reflected transaction and integration costs related to the Pendal acquisition which completed in January 2023. 

The firm said the acquisition had benefitted the firm since its completion as it doubled its group assets under management to $212 billion.

Perpetual reported difficulty in its asset management business, however, as a result of volatile global equity markets and cautious investor sentiment towards equities. This led to $8.1 billion in net outflows, predominantly in its US equities strategies.

Most outflows came from the institutional channel and US equity mandates managed by Barrow Hanley, JO Hambro and TSW, offset by net inflows and strong performance into Trillium funds. 

Rob Adams, Perpetual group chief executive, said: “Looking forward, with our strong relative investment performance, combined with our materially improved global distribution coverage, we remain confident of unlocking growth from our differentiated portfolio of boutique asset managers over time.

“Whilst net outflows for FY23 were disappointing, we continue to be encouraged by the trajectory of flows across several capabilities including Barrow Hanley which improved its overall flow profile on the back of demand for its global and emerging market strategies combined with a moderation in US equity outflows.”

Having now completed the Pendal acquisition, the firm said it is focused on unlocking the growth potential and simplifying the way it operates. It has therefore opted to change up its group executive team with a simplified asset management structure and leadership.

The current regional asset management businesses will now form one global division led by Rob Adams as chief executive of asset management, who will hold the role in addition to his group CEO role.

Graham Kitchen, current chair of Trillium and Perpetual corporate entities in the UK, will temporarily act as global head of investment strategy while it sources a permanent candidate. 

Amanda Gillespie will continue to lead asset management in Australia and Adam Quaife will lead global distribution, both will join the group executive committee.   

The restructure meant two major departures as Alexandra Altinger, chief executive of JO Hambro for UK, Europe and Asia, exits as well as David Lane who led the Perpetual’s US asset management business.

Adams said: “The changes we are making enable us to have an improved focus on our global asset management business and successful execution of strategy while creating a simplified Perpetual Group leadership structure focused on driving future growth across all our businesses.”

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