Perpetual has reported positive quarterly net inflows for the first time in 12 months, a notable improvement from outflows of $8.9 billion in the previous quarter.
In the three months to 30 September 2024, net inflows of $400 million helped the firm’s assets under management (AUM) rise 3 per cent from $215 billion at the end of June to $222.3 billion.
Positive market movements contributed $12.7 billion, offset by negative currency movements of $5.8 billion.
The quarterly net inflows mark a positive shift from the significant outflows of $8.9 billion seen in the June quarter, $5.2 billion in the March quarter, and $4.3 billion in the December quarter. The last time it saw net inflows was at the end of September 2023 at $100 million.
This was also Perpetual’s first quarterly business update since appointing its new CEO, former Australian Retirement Trust chief Bernard Reilly, in August this year. He took over from Rob Adams, who had held the role since September 2018 and announced he would be retiring in May.
“The first quarter of FY25 was a positive quarter for all three of Perpetual’s businesses,” remarked Reilly.
“In asset management, stronger global equity markets and positive net inflows supported a 3 per cent uplift in our AUM and there was also an improvement in investment performance where 71 per cent of the group’s strategies outperformed their benchmark over three years to 30 September 2024.”
Also speaking in Perpetual’s 2024 AGM presentation, Reilly said: “In asset management, we need to turn around the outflows. Recent outflows have been higher than anticipated. Outflows are driven by a few factors: investment underperformance, business instability and changing market dynamics. We have pockets of investment underperformance that need we need to address.”
Pendal’s AUM was up 13.9 per cent to $45.4 billion, underpinned by net inflows of $3.9 billion and positive markets of $1.6 billion.
Net inflows were supported by mandate wins in the Pendal Core Australian Equities strategy, the company stated, which led to $2.5 billion in net inflows in that strategy, alongside net inflows of $2.1 billion into the Managed Cash strategy due to a large, short-dated cash mandate.
“The Pendal boutique in Australia had a particularly strong quarter delivering close to $4 billion in net inflows and while part of this result is attributable to a short-dated cash mandate, it is nonetheless pleasing to see the strong result, as well as an improvement in net outflows in both the offshore J O Hambro and TSW boutiques,” the CEO continued.
J O Hambro Capital Management’s AUM decreased by 1.9 per cent to $37.5 billion, while Barrow Hanley’s AUM rose 1.3 per cent to $78.5 billion and TSW’s AUM grew 2.5 per cent to $30 billion.
“Barrow Hanley had a more challenging quarter in its global and international equities strategies. In corporate trust and wealth management, the businesses continued to deliver steady growth in assets over the quarter.”
Perpetual’s wealth management division saw a 3 per cent growth in its funds under administration to $20.4 billion.
In its FY24 results, the asset manager reported outflows of $18.4 billion for the full financial year, which was “greater than expected”. Also in August, Perpetual announced its chairman Tony D’Aloisio is to retire from the board after eight years.
