Perpetual battles volatility
Perpetual continues to be affected by volatile market conditions, announcing today a minor increase in funds under management (FUM) despite a major outflow from an institutional client.
The company told the Australian Securities Exchange (ASX) today that FUM as at April 30 stood at $32.6 billion, including a net outflow of $100 million from an institutional client in Australian equities.
The company said that the $32.6 billion in FUM at April 30 compared to $32 billion at March 31.
Perpetual’s update on its inflows came at the same time as the company told the ASX that the total mark-to-market losses after tax in its Exact Market Cash Fund (EMCF) had steadied and now stood at $26.2 million at April 30.
It said the stabilisation of the mark-to-market losses, which are largely unrealised, reflected the improved market conditions in the domestic investment grade credit market in late March and April.
The company said that it had managed downside risk and limited the impact of the unprecedented volatility in the market on the EMCF by hedging parts of the portfolio.
It said the hedge, which had also regulated the tracing of the spreads in the short term, would continue to unwind as the mark-to-market position improved.
AUTHOR
Mike Taylor
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