Market movements propel Perpetual’s AUM growth
Perpetual Limited has released its financial results for the three months to 31 December, reporting total assets under management (AUM) of $93.7 billion, up 4% from $89.8 billion in the previous quarter.
The improvement was supported by positive market movements, which helped deliver $8.9 billion to the total AUM.
This was offset by negative currency movements ($3.8 billion) and a contraction in flows ($1.2 billion).
Perpetual Asset Management, Australia (PAMA) contributed approximately $800 million to the group’s total AUM growth, with Perpetual Asset Management International (PAMI) doing most of the heavy lifting — delivering $3.1 billion to total FUM.
PAMA closed 2Q23 with total AUM of $22.1 billion, while PAMI’s AUM totalled $71.6 billion.
Across the group, institutional investors were the largest beneficiaries of positive market movements, with their assets growing by approximately $7.5 billion.
Intermediary and retail investors generated modest improvements in the value of their assets, up approximately $1.1 billion and $300 million, respectively.
However, institutional investors contributed to the lion’s share of outflows ($1.4 billion), particularly across the PAMI business ($1.1 billion).
Meanwhile, Perpetual Corporate Trust’s funds under management (FUM) grew 1% to $1.14 trillion, while Perpetual Private’s funds under advice rose 4% over Q2 23 to $17.9 billion.
In light of the group’s 2Q23 performance, Perpetual was expecting a 1H23 underlying profit after tax of between $65 million to $70 million.
The group, which was set to acquire Pendal Group, was scheduled to announce its first-half results on 23 February.
“Despite what was a very tough operating environment in 2022 for asset managers, Perpetual has ended the December quarter in a strong position,” Perpetual Limited CEO and managing director, Rob Adams, said.
“All areas of our business experienced growth in the quarter.”
The release of Perpetual’s results come just weeks after the Supreme Court of NSW rubber stamped its acquisition of Pendal Group.
The scheme remained on track for formal implementation on 23 January, 2023, providing Pendal shareholders with a consideration mix comprising a total of:
- $1.65 cash per Pendal share, less the permitted dividend amount of 3.5¢ per share — paid to Pendal shareholders on 15 December, 2022; and
- One Perpetual share for every seven Pendal shares.
“It was a significant quarter for Perpetual, as we have now received Pendal shareholder and court approval for the acquisition of Pendal Group which means we are on track for completion this coming Monday 23 January 2023,” Adams added.
“The acquisition will see Perpetual substantially grow its asset management business, creating a leading global multi boutique asset management firm focused on active asset management, with a truly global distribution footprint and leading ESG investment strategies, better positioned to manage industry headwinds and to drive future growth.”
AUTHOR
Charbel Kadib
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