Perpetual's Australian asset management business took a slight hit through the December quarter, but the group is optimistic about its potential for international growth following its two recent US acquisitions.
Perpetual’s total assets under management (AUM) was $89.2 billion as at 31 December, following the completion of its purchase of US investment manager Barrow Hanley, Mewhinney & Strauss (Barrow Hanley) in November.
But Perpetual Asset Management Australia’s total AUM of $22.7 billion was down 2 per cent in the quarter, to $22.7 billion. There were net outflows of $1.7 billion primarily driven by an outflow of $1.7 billion from a low margin institutional enhanced cash mandate.
The group’s newly formed international asset management segment had a total AUM of $66.5 billion, inclusive of US ESG specialist Trillium and Barrow Hanley.
Perpetual chief executive and managing director Rob Adams noted the company now has a team of 70 distribution professionals across key regions after the Barrow Hanley acquisition, with a number of recent key appointments in the US.
“Together with our earlier acquisition of Trillium, our asset management businesses are well positioned for future growth, with greater diversity by client type, by geography and by asset class,” Mr Adams said.
“Barrow Hanley’s investment performance has improved significantly across all capabilities as markets have rotated towards value in recent months, positioning us well for future growth.”
Perpetual Private’s funds under advice closed December at $15.5 billion, up by 6 per cent than the previous quarter, including $200 million positive net inflows for the quarter.
“We continue to see positive net flows in Perpetual Private driven by new flows from advisers who have joined the firm over the last year as a result of our new adviser growth strategy,” Mr Adams said.
Meanwhile the corporate trust division recorded $936.2 billion in funds under administration, up 1 per cent.
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