Perpetual Reports Mixed Q2 FY25 Performance Amid Currency Tailwinds

Key Highlights (Q2 FY25):

  • Assets Under Management (AUM) rose 3.6% to A$230.2 billion, driven by currency gains.
  • Funds Under Administration (FUA) in Corporate Trust grew 2.5%, reaching A$1.25 trillion.
  • Wealth Management FUA increased 1%, benefiting from market movements.
  • Performance fees surged to A$15.9 million, up from A$5.4 million in 1H24.

Asset Management: Currency Boost Offsets Market & Outflows

Despite facing net outflows of A$3.8 billion and negative market movements of A$4.1 billion, Perpetual’s AUM increased to A$230.2 billion, thanks to A$15.8 billion in favourable currency movements.

  • Barrow Hanley AUM grew 8.4% to A$85.1 billion, benefiting from currency gains, despite A$0.4 billion in outflows.
  • J O Hambro (JOHCM) AUM dipped 0.9% to A$37.1 billion, as A$2.1 billion in outflows outweighed currency gains.
  • Pendal Asset Management AUM declined 1.7% to A$44.7 billion, due to A$1.1 billion in outflows, mostly from multi-asset and Australian equities.
  • Perpetual Asset Management AUM increased 1.7% to A$22.1 billion, supported by net inflows into fixed income and Australian equities.
  • Trillium AUM rose 6.2% to A$9.8 billion, primarily due to currency tailwinds.
  • TSW AUM climbed 5.0% to A$31.5 billion, despite A$0.3 billion in outflows.

Corporate Trust: Strong FUA Growth

  • Total FUA reached A$1.25 trillion, up 2.5% from Q1.
  • Debt Market Services (DMS) FUA rose 1.3% to A$725.2 billion, with solid growth in warehouse and securitisation markets.
  • Managed Funds Services (MFS) FUA climbed 4.1% to A$525.0 billion, driven by broad-based product growth.

Wealth Management: Modest Expansion

  • FUA grew 1% to A$20.6 billion, supported by A$0.2 billion in market gains, while net flows remained flat.

Financial Outlook & KKR Acquisition Update

  • 1H25 expense growth expected at upper end of 2-4% guidance due to currency impacts and performance fee-linked remuneration.
  • Significant items after tax estimated at A$85–A$92 million, pending audit.
  • KKR transaction discussions ongoing, with further updates to follow.

Upcoming Financial Results

Perpetual will announce its 1H25 results on 27 February 2025.

Despite facing market headwinds, Perpetual’s currency-driven AUM growth, solid Corporate Trust performance, and higher performance fees highlight its resilience heading into 2025.