Irish move costs Perpetual $250m in FUM

Perpetual Investment’s decision to establish a Dublin-based in-house international equities office has cost it $250 million in funds under management (FUM), thanks to the closure of a series of overseas regional funds offered by the former manager of its international equities funds, Fidelity Investments.

The loss accounted for most of the $400 million Perpetual lost in FUM between December 31,2004 and April 30, 2005, chief executive Charles Curran said in a letter released to shareholders today.

But the loss of the $250 million was expected and only represents 1.6 per cent of the group’s $25.6 billion FUM.

Curran pinned the remaining $150 million loss on the recent softening of the Australian equities market.

Curran was optimistic about the future of the Dublin-based operation, Perpetual Investment Management, claiming the new company had successfully transferred $1.8 billion in FUM across from Fidelity and had, in May, become an external manager on giant insurance and investment company Irish Life’s $8.3 billion investment product platform.

He also claimed the wider Perpetual Trustees group was on track to post bumper full financial year profits.

“Despite some pull-back in the Australian stockmarket in recent months, our profit guidance given in February of an approximate 25 per cent improvement in operating profit for the year to June 30,2005 remains appropriate,” he said.