Perpetual (ASX:PPT) Loses $12.4 Billion in Assets

July 24, 2024 10:25 AM AEST | By Team Kalkine Media

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Perpetual (ASX:PPT) Loses $12.4 Billion in Assets — Image source: shutterstock

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In the fourth quarter, Perpetual (ASX:PPT) experienced a significant reduction in its assets under management (AUM), which decreased by $12.4 billion, bringing the total to $215 billion at the end of June. This represents a decline from the $227.4 billion recorded on March 31.

Chief Executive Rob Adams explained that this downturn was due to several institutional client redemptions, short-term delays in receiving new institutional funds, and weaker equity markets. These factors collectively contributed to the substantial drop in AUM.

Perpetual detailed the specific impacts on its AUM:

Negative market movements led to a reduction in asset value.

Distributions accounted for $1.4 billion of the decline.

Currency movements caused a further $2.1 billion decrease.

Net outflows amounted to $8.9 billion, significantly affecting the overall AUM.

The net outflows were primarily seen in Australian equities, multi-asset, and cash strategies. However, it wasn't all negative, as Australian fixed income strategies continued to attract positive net inflows, demonstrating some areas of resilience within Perpetual's portfolio.

Perpetual's shares were last traded at $22.75 each, reflecting the market's reaction to these developments.

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