Total funds under advice (FUA) for Perpetual Private grew 3 per cent in the second quarter of the financial year to $19 billion.
The firm attributed the $0.5 billion FUA rise to $0.3 billion in positive net flows and $0.2 billion from positive investment markets and other movements.
Total average FUA for the quarter was $18.6 billion compared to $17.9 billion during the September quarter.
The integration of boutique wealth advisory firm Jacaranda, which Perpetual acquired in August last year, was said to be progressing as expected and the financial services licence transition was completed in December.
Jacaranda’s FUA was $1 billion as of the end of the quarter.
“The focused execution of our strategy is continuing to deliver results this quarter, with further growth in assets across all divisions of Perpetual,” said Perpetual chief executive and MD Rob Adams.
“It is pleasing to see the positive momentum continuing to build across all areas of Perpetual.”
Perpetual reported its total assets under management (AUM) rose 1.8 per cent during the quarter to $102.8 billion.
Included in this figure is a 2.3 per cent rise in AUM for Perpetual Asset Management International (PAMI) to $77.2 billion and a 0.4 per cent rise for Perpetual Asset Management Australia (PAMA) to $25.6 billion.
PAMI’s AUM rise was attributed to positive market movements of $4.0 billion during the period which were offset by net outflows of $1.9 billion and a negative foreign exchange impact of $0.3 billion.
Perpetual said the net outflows were principally driven by outflows in lower margin US equities and US fixed income strategies and partially offset by inflows into global equity strategies.
Average AUM for PAMI was $75.4 billion for the quarter compared to $75.3 billion in the previous quarter.
Trillium’s total AUM was $9.2 billion after inflows of $326 million delivered the fifth consecutive quarter of positive net flows.
PAMA recorded net inflows of $128 million as a result of solid flows into cash and fixed income funds and multi-asset funds of $0.4 billion and positive flows into global equity capabilities of $0.1 billion but offset by $0.4 billion in outflows for Australian equities.
Meanwhile, Perpetual Corporate Trust’s FUA rose 3 per cent to $990.4 billion, including a 4 per cent rise in the debt market services division while FUA remained flat in the managed funds services division.
“We have positive momentum across all divisions, with our earnings guidance today showing strong growth in our business in the first half of FY22, and we are confident that our strategy, combined with current market conditions, positions us well for continued growth,” said Mr Adams.
Perpetual said it expects underlying profit after tax to be in the range of $77 million to $81 million based on preliminary unaudited financials for the first half.
Perpetual also reaffirmed its operating expense growth guidance for the financial year of between 18 and 22 per cent with a skew to the second half.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
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