Perpetual assets rise despite $1.2bn outflows

Perpetual gave its third-quarter business update on Friday, where it revealed its total assets under management (AUM) sat at $95.3 billion at the end of March, rising from $89.2 billion at the end of December. The increase occurred despite $1.2 billion in net outflows during the quarter, overwritten by $6.5 billion coming in from market performance and other movements.

Perpetual Asset Management International’s total AUM, which included the recently acquired US groups Trillium Asset Management and Barrow Hanley Global Investors, rose by 8 per cent during the three months to March, to $71.6 billion. Market performance has offset $892 million in net outflows from the international segment, mostly from the institutional channel. 

The Australian asset management division managed a 4 per cent increase, to $23.7 billion – driven by positive market returns and investment performance. There had been $275 million in net outflows over the three months – primarily from intermediary clients, withdrawing from Australian equities.

Perpetual Private locked a 4 per cent increase in funds under advice, to $16.1 billion, including $200 million in positive net inflows. 

The corporate trust business on the other hand stayed somewhat steady, with its funds under administration rising by 1 per cent to $942.9 billion.

Perpetual chief executive and managing director Rob Adams commented the group had seen “considerable momentum” across all divisions and is well positioned to capitalise on growth opportunities. 

“We remain on track in building out our global distribution capability with quality appointments now in place in Australia, the US, and most recently in the UK following regulatory approval which was successfully achieved during the quarter. We are now increasingly well-positioned to take the world-class investment capabilities of Trillium, Barrow Hanley and Perpetual to key markets around the world,” Mr Adams said. 

Perpetual has increased its commitment to the UK market, having rolled out a round of local appointments. 

“As part of the move, we have attracted a team of senior investment professionals to spearhead the launch of new global ESG equity strategies, led by Ian Warmerdam who joins as lead portfolio manager,” Mr Adams said. 

Mr Warmerdam has joined the company after working with Janus Henderson for 18 years, most recently being director of global equities. He will be joined by former Martin Currie head of research Jamie Mariani, who has been appointed as a portfolio manager. 

Perpetual has also named a new chair for its UK board, Graham Kitchen, who was most recently global head of equities at Janus Henderson and an executive committee member. 

He worked with Janus Henderson for 14 years, managing equities portfolios. 

“Based in Edinburgh, the investment team will begin to roll out a suite of global ESG-focused equities strategies with support from a distribution and compliance team based in the UK,” Mr Adams said.

“These important appointments bring together a team with some of the deepest experience in the region to support our growth plans for Trillium as we continue to be primed for the growing demand in Europe and around the globe for quality, integrated ESG investment strategies.”