Listed fund manager sees advice surge

In its quarterly business update released to the market on Thursday, Perpetual said funds under advice for its wealth business, Perpetual Private, had risen 8 per cent – or $1 billlion – over the quarter to June 2020, due to net inflows as well as positive market movements.

However, the group noted that funds under advice was still below that seen in the same period last year, having reached $14.3 billion by 30 June.

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As a result of “the economic slowdown and low interest rate environment”, Perpetual said revenues in its wealth business had been impacted, particularly that of specialist advisory group Fordham.

However, Perpetual chief executive Rob Adams said FUA growth was being strengthened by new advisers joining Perpetual Private.

“We continue to see positive flows from our new advisers as they transition clients across to Perpetual, albeit at a slightly slower pace than expected due to the challenging market conditions,” Mr Adams said. 

“This now marks the 14th consecutive half that PP has seen positive net flows, despite the extremely difficult market environment and ongoing dislocation impacting the advice industry.”

Perpetual said it had processed 3,800 super withdrawal requests since the beginning of the government’s early access scheme, with withdrawals totalling $26.9 million.

Funds under management across its investments business also rose by 33 per cent in the June quarter, buoyed by its acquisition of ESG firm Trillium.