In the three months to September 30, 2024, net inflows of $400 million helped the company’s assets under management (AUM) increase 3%, from $215 billion at the end of June to 222. 3 billion dollars.
Positive market movements contributed $12.7 billion, offset by negative foreign exchange movements of $5.8 billion.
The quarterly net inflows mark a positive change 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.
It was also the first quarterly update on Perpetual’s business since the appointment of its new CEO, former Australian Retirement Trust chief Bernard Reilly, in August this year. He succeeded Rob Adams, who had held the position since September 2018 and announced he would retire in May.
“The first quarter of FY25 was positive for all three of Perpetual’s businesses,” remarked Reilly.
“In asset management, stronger global equity markets and positive net inflows supported a 3% increase in our assets under management and there was also an improvement in investment performance where 71% of strategies in the group have outperformed their benchmark index over three years until September 30, 2024.”
Also speaking at Perpetual’s 2024 AGM presentation, Reilly said: “In asset management we need to reverse capital outflows. Recent capital outflows have been larger than expected. Capital outflows are driven by several factors: investment underperformance, corporate instability, and changing market dynamics. We have pockets of investment underperformance that we need to address.
Pendal’s assets under management increased 13.9 percent to $45.4 billion, supported by net inflows of $3.9 billion and positive markets of $1.6 billion.
Net inflows were supported by mandates won in the Pendal Core Australian Equities strategy, the company said, which led to $2.5 billion in net inflows into this strategy, as well as net inflows of $2.1 billion in the Managed Cash strategy due to significant short-term investment. treasury mandate.
“The Pendal store in Australia had a particularly strong quarter, generating almost $4 billion in net inflows and, while some of this was attributable to a short-term liquidity mandate, it is nonetheless pleasing to see the solid result, as well as an improvement. in net outflows in the JO Hambro and TSW offshore boutiques,” the CEO said.
JO Hambro Capital Management’s assets under management decreased 1.9 percent to $37.5 billion, while Barrow Hanley’s assets under management increased 1.3 percent to $78.5 billion and those of TSW rose 2.5 percent to $30 billion.
“Barrow Hanley had a more challenging quarter for its global and international equity strategies. In the corporate trust and wealth management sectors, businesses continued to generate consistent asset growth during the quarter.
Perpetual’s wealth management division saw its funds under administration grow 3 per cent to $20.4 billion.
In its results for the 2023-2024 financial year, the asset manager reported capital outflows of $18.4 billion for the full financial year, which was “larger than expected”. Also in August, Perpetual announced that its chairman, Tony D’Aloisio, would step down from the board after eight years.
