Perpetual sees improved asset management flows
In an update for the first quarter of FY2024, Perpetual has seen net inflows of $0.1 billion each into its wealth management and asset management divisions.
Funds under advice (FUA) in wealth management were $18.4 billion and saw inflows of $0.1 billion. However, negative market movements of $0.2 billion meant total wealth FUA was down 1 per cent.
In the asset management division, total assets under management (AUM) were $211.7 billion compared to $212.1 billion in the June quarter. Net inflows were $0.1 billion and favourable currency movements were $3.3 billion, which Perpetual said offset the impact of lower investment markets of $3.8 billion.
Pendal’s AUM, which Perpetual acquired earlier this year, was up 1.7 per cent from $40.3 billion in June to $41 billion driven by net inflows of $1 billion. The firm said its integration remains on track.
“The integration of Pendal Group continues to progress well with synergies tracking to plan,” it said.
AUM at Barrow Hanley was $70.9 billion, up 1.5 per cent from $69.8 billion, thanks to inflows into its global and international strategies which attracted strong net inflows of $1.4 billion. However, its US equities and fixed income strategies saw outflows during the quarter.
Barrow Hanley, which was acquired by Perpetual in 2020, was namechecked as an area of the business that had seen “a strong quarter”.
For J O Hambro Capital Management (JOHCM), it saw a moderation in outflows across its strategies with net outflows of $0.5 billion compared to $2.3 billion in the June quarter. JOHCM AUM was $40.4 billion, down by 1.8 per cent.
Chief executive and managing director Rob Adams said: “The September quarter showed a marked improvement in total net flows across our asset management business when compared to the June quarter.
"Delivering positive net inflows despite the current operating environment, with volatility impacting markets and investor confidence globally, demonstrates the quality and diversity of our broad capability set and our emerging strength in distribution.”
In its full year results in July, the firm said it has restructured the executive leadership team in asset management after reporting $8.1 billion in outflows from its asset management business in FY23.
It therefore opted to change up its group executive team with a simplified asset management structure and leadership.
The current regional asset management businesses were changed to form one global division led by Rob Adams as chief executive of asset management, who will hold the role in addition to his group CEO role.
Amanda Gillespie will continue to lead asset management in Australia, and Adam Quaife will lead global distribution – both will join the group executive committee.
Adams said: “The changes we are making enable us to have an improved focus on our global asset management business and successful execution of strategy while creating a simplified Perpetual Group leadership structure focused on driving future growth across all our businesses.”
AUTHOR
Laura Dew
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
