Perpetual shares lower on $547m impairment charge
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More news: Perpetual shares tumbled in morning trade after the investment manager flagged a $547 million impairment charge following greater-than-expected outflows from investment strategies managed by J O Hambro and TSW.
Shares lowered 2.6% to $20.35 by 11:55am AEST.
Perpetual flags $547m impairment charge on strong outflows
The news: Investment manager Perpetual said it expects to recognise a non-cash, pre-tax impairment charge of around $547 million in its 2024 financial results, following greater-than-expected outflows from investment strategies managed by J O Hambro and TSW.
The numbers: Perpetual said that in the second half of FY24, it saw net outflows of $8 billion for J O Hambro and $4 billion for TSW.
Based on the projected impact of these outflows and a resulting moderation of expectation for future flows, a non-cash impairment charge of $417 million will be recognised against the carrying value of goodwill for J O Hambro, and $130 million for TSW, the company said.
The context: Perpetual, which last month posted a $12.4 billion drop in assets under management for the June quarter, said the impairment will impact the group's statutory results for the full year ended 30 June, 2024, subject to completion of its audit process and board approval.
The source: ASX announcement
