Perpetual shares dip after shedding $12.4b in AUM
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More news: Perpetual shares lowered in early trading after the investment manager posted a $12.4 billion, or 5.5%, drop in assets under management during the June quarter.
Shares were down 1.5% to $22.41 by 11:30am AEST.
The fund manager also posted $8.9 billion in net outflows during the quarter.
Perpetual posts $12.4b AUM drop in June quarter
The news: Perpetual posted a $12.4 billion drop in assets under management (AUM) in the June quarter, as net outflows and negative currency and market movements weighed on the investment manager.
The numbers: Perpetual's total AUM fell 5.5% from $227.4 billion at 31 March to $215 billion at 30 June.
The company said the fall was primarily due to the impact from negative market movements and distributions of $1.4 billion, currency movements of $2.1 billion and net outflows of $8.9 billion.
Average AUM was $219.8 billion compared to $220.3 billion in the March quarter.
All of Perpetual's boutiques saw lower AUM during the quarter, including Barrow Hanley (down 2.7% to $77.2 billion), J O Hambro Capital Management (down 7.5% to $37.3 billion), Pendal Asset Management (down 8% to $41 billion), Perpetual Asset Management (down 2.7% to $20.8 billion), Trillium (down 13.6% to $9.4 billion) and TSW (down 5.3% to $29.2 billion).
Perpetual said it expects expense growth for FY24 to be at the lower end of its existing guidance of 32% to 34%, noting that the cost to income ratio for the group has been "relatively stable" for the financial year.
Significant items post tax for FY24 are expected to be within the range of $140 million to $150 million, including integration costs relating to Perpetual's acquisition of Pendal last year, and separation and transaction costs in connection with KKR's $2.2 billion acquisition of its corporate trust and wealth management businesses.
In the June quarter, Perpetual's corporate trust business reached funds under administration (FUA) of $1.2 trillion, up slightly on the prior quarter, while its wealth management saw FUA dip 1% to $19.8 billion.
The context: Perpetual's CEO and managing director Rob Adams said the June quarter showed a "mixed performance" across the company's business divisions.
Adams noted that Perpetual's asset management business was impacted by the timing of several institutional client redemptions and short term delays in expected new institutional inflows in specific strategies, as well as softer equity markets in Australian and global indices.
He also flagged that in Australia, Pendal had a "challenging quarter" without outflows in cash and Australian equities.
Perpetual has started the September quarter with new institutional client wins in excess of $3 billion, as well as additional institutional wins across a variety of equity strategies and boutiques.
The source: ASX announcement
