PPT
Perpetual Limited
ASX
First Quarter FY25 Business Update
Sentiment:
Quarterly Business Update
16 October 2024 5:16 PM
Perpetual Limited reported a positive first quarter of FY25, with Assets Under Management (AUM) reaching A$222 billion, a 3% increase driven by market gains and net inflows, despite some challenges in specific investment strategies.
Better than expected
The 3% increase in AUM to A$222 billion exceeded expectations, driven by positive market movements and net inflows.
Summary
- Perpetual Limited announced its first-quarter FY25 business update for the period ending September 30, 2024.
- Total Assets Under Management (AUM) reached A$222.3 billion, a 3% increase from A$215.0 billion in the previous quarter.
- The increase was primarily due to A$12.7 billion in positive market movements and A$0.4 billion in net inflows, offset by A$5.8 billion in negative currency movements.
- Asset Management saw strong performance, with 71% of group strategies outperforming benchmarks over three years.
- Pendal boutique in Australia had strong net inflows of close to A$4 billion, partly due to a short-dated cash mandate.
- Barrow Hanley experienced challenges in global and international equities strategies, with net outflows of A$2.1 billion.
- J O Hambro Capital Management (JOHCM) saw AUM decrease by 1.9% due to net outflows of A$1.6 billion and negative currency movements.
- Corporate Trust and Wealth Management showed steady growth in assets.
- Corporate Trust's total Funds Under Administration (FUA) grew to A$1.22 trillion, a 1% increase.
- Wealth Management's total FUA was A$20.4 billion, up 3% from the previous quarter.
Sentiment
Score: 7
Explanation: The overall sentiment is positive due to the increase in AUM and positive performance in several areas, although challenges in some investment strategies temper the overall positivity.
Highlights
- AUM reached A$222.3 billion as of September 30, 2024.
- A 3% increase in AUM compared to the previous quarter.
- A$12.7 billion increase from positive market movements.
- A$0.4 billion in net inflows.
- A$5.8 billion decrease from negative currency movements.
- 71% of group strategies outperformed benchmarks over three years.
- Pendal had close to A$4 billion in net inflows.
- Barrow Hanley had net outflows of A$2.1 billion.
- JOHCM had net outflows of A$1.6 billion.
- Corporate Trust FUA grew to A$1.22 trillion (1% increase).
- Wealth Management FUA reached A$20.4 billion (3% increase).
Positives
- Overall AUM increased by 3% to A$222.3 billion.
- Positive net inflows of A$0.4 billion contributed to the AUM growth.
- 71% of Perpetual's investment strategies outperformed their benchmarks over three years.
- Pendal had particularly strong performance with nearly A$4 billion in net inflows.
- Both Corporate Trust and Wealth Management showed steady growth in assets.
- Perpetual Digital secured a mandate from Income Asset Management.
Negatives
- Negative currency movements resulted in a A$5.8 billion decrease in AUM.
- Barrow Hanley faced challenges, experiencing net outflows of A$2.1 billion, largely in US and global equities.
- JOHCM experienced net outflows of A$1.6 billion and negative currency movements.
- Trillium and TSW experienced net outflows and unfavorable currency movements.
Risks
- Continued negative currency movements could impact future AUM growth.
- Challenges in specific investment strategies, such as those experienced by Barrow Hanley and JOHCM, could persist.
- The short-dated cash mandate contributing to Pendal's strong inflows is temporary and may not be sustainable.
Future Outlook
The announcement does not provide specific forward-looking statements or guidance beyond the reported first-quarter results.
Management Comments
- 'The first quarter of FY25 was a positive quarter for all three of Perpetual’s businesses.'
Industry Context
The announcement reflects the broader positive market conditions in the asset management industry during the first quarter of FY25. The performance of individual boutiques within Perpetual highlights the varied experiences within the sector, with some benefiting from strong inflows while others faced challenges.
Next Steps
- Continue to monitor market conditions and manage investment strategies.
- Maintain focus on attracting and retaining clients.
Key Dates
- 30 June 2024: End of the previous quarter (June quarter).
- 30 September 2024: End of the first quarter of FY25.
- 17 October 2024: Date of the ASX announcement.
Keywords
Perpetual Limited, AUM, Asset Management, FY25, Quarterly Business Update, Investment Performance, Net Inflows, Corporate Trust, Wealth Management, Pendal, Barrow Hanley, JOHCM
PPT
Perpetual Limited
ASX
Sector: Financial Services
Filings with Classifications
Worse than expected
14 April 2025 6:55 PM
Quarterly Business Update
- Asset Management AUM decreased by 4% to approximately A$221 billion, indicating worse than expected performance in this segment.
Worse than expected
26 February 2025 4:57 PM
Half Yearly Report and Accounts
- The NPAT was significantly lower than previous periods due to significant items including impairment losses, indicating worse than expected results.
Worse than expected
26 February 2025 4:56 PM
Half Yearly Report and Accounts
- The net profit after tax attributable to equity holders of Perpetual Limited decreased to $12.0 million from $34.5 million year-over-year.
Delay expected
26 February 2025 4:56 PM
Half Yearly Report and Accounts
- The Scheme Implementation Deed with KKR for the sale of Wealth Management and Corporate Trust businesses was terminated after receiving unfavorable views from the ATO and an adverse report from the Independent Expert.
Worse than expected
26 February 2025 4:54 PM
Half Year Results
- The statutory NPAT decreased significantly due to significant items and an impairment in Asset Management, indicating worse than expected results.
Worse than expected
23 February 2025 5:35 PM
Company Update
- The termination of the Scheme of Arrangement with KKR is worse than expected as it represents a failed transaction and incurs significant transaction and separation costs.
Worse than expected
16 December 2024 4:59 PM
Transaction Update
- The Independent Expert's inability to support the deal due to potential tax liabilities is a worse outcome than expected.
Worse than expected
9 December 2024 4:40 PM
Scheme Update
- The potential for a A$488 million tax liability is significantly worse than expected.
- The ATO's position that the entire cash proceeds could be deemed an unfranked dividend is worse than expected.
- The uncertainty surrounding the transaction due to the ATO's stance is worse than expected.
Delay expected
9 December 2024 4:40 PM
Scheme Update
- The document indicates a delay in the finalisation of the transaction due to ongoing engagement with the ATO regarding the tax treatment.
Worse than expected
25 November 2024 1:17 AM
Shareholding Change Notice
- The reduction in Perpetual Limited's shareholding in Kina Securities Limited indicates a negative market sentiment or a strategic decision by the investor to divest from the company.
Worse than expected
21 November 2024 12:33 AM
Change of Substantial Holding Notice
- The decrease in Perpetual Limited's voting power in Healius Limited from 14.505% to 13.467% indicates a reduction in their stake, which is worse than maintaining or increasing their holding.
Worse than expected
18 November 2024 12:49 AM
Substantial Holder Notice
- The results were worse than expected because Perpetual Limited decreased its stake in Infomedia Limited, indicating a potential loss of confidence in the company's future prospects.
Worse than expected
17 October 2024 12:43 AM
Annual General Meeting Results
- The failure of the remuneration report and the election of a non-board endorsed director candidate represent worse-than-expected outcomes for Perpetual Limited.
Delay expected
16 October 2024 6:54 PM
Annual Report
- The timeline for the shareholder vote on the KKR scheme is subject to regulatory approvals and finalization of tax and duty discussions, potentially causing a delay from the initial target of early 2025.
Worse than expected
16 October 2024 6:54 PM
Annual Report
- Despite overall revenue and profit growth, significant net outflows from the Asset Management division were worse than anticipated, leading to a substantial impairment charge and impacting the final dividend.
Better than expected
16 October 2024 5:16 PM
Quarterly Business Update
- The 3% increase in AUM to A$222 billion exceeded expectations, driven by positive market movements and net inflows.
Delay expected
12 September 2024 6:43 PM
Sustainability Report
- The development of a cultural diversity target was paused due to the Strategic Review and potential separation of the Wealth Management and Corporate Trust businesses.
- Some community giving activities were paused due to reduced bandwidth resulting from the Strategic Review.
Worse than expected
12 September 2024 6:43 PM
Annual Report
- While UPAT increased, a significant non-cash impairment charge and other significant items resulted in a statutory net loss, indicating worse-than-expected results.
Delay expected
12 September 2024 6:35 PM
Annual General Meeting Notice
- The allocation of the LTI award to the new CEO is contingent upon the completion of the transaction, which could cause a delay in the award's allocation.
Worse than expected
12 September 2024 6:35 PM
Annual General Meeting Notice
- The statutory net loss after tax of A$472.2 million was significantly worse than expected due to substantial non-cash impairments and other significant items.
Worse than expected
23 July 2024 7:01 PM
Quarterly Business Update
- Asset Management AUM decreased by approximately 5% to A$215 billion, impacted by net outflows, market movements, and currency fluctuations.
Better than expected
7 May 2024 8:35 PM
Strategic Review Announcement
- The strategic review resulted in a cash offer that the board considers superior to other alternatives.
- The transaction unlocks significant value for shareholders through the sale of Wealth Management and Corporate Trust at attractive multiples.
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