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Highlights
- Quarterly net outflows rise sharply to $8.9 billion
- Decline in global and US equities drives fund exits
- Perpetual lowers expense growth outlook for FY25
Perpetual (ASX:PPT) experienced a significant rise in net outflows during the March quarter, with investors pulling $8.9 billion from its funds. This marked more than double the $3.8 billion withdrawn in the previous December quarter, signalling increasing pressure on the asset manager’s global investment operations.
A substantial portion of the outflows—around $2.5 billion—came from cash holdings. Redemptions were particularly notable in Perpetual’s international subsidiaries and affiliated investment managers, including Barrow Hanley, J O Hambro Capital Management, Pendal Asset Management, and TSW.
The company attributed the accelerated outflows to multiple factors such as client mergers, portfolio reallocations, and continued underperformance in certain investment strategies, particularly within global and US equities. These headwinds have contributed to a 4% decline in total assets under management (AUM), which now stand at $221 billion.
Despite the challenging quarter, Perpetual (PPT) reaffirmed its cost management efforts. The group updated its forecast for expense growth in the 2025 financial year, narrowing the expected range to 3–4%, down from the previous projection of 4%. Additionally, the company remains on track to achieve $30 million in annualised cost savings by June 30.
The strategic pivot towards operational efficiency suggests that Perpetual is aiming to shore up profitability amid ongoing redemption pressures. The reduction in cost guidance is also seen as a proactive measure to offset revenue impacts from lower AUM.
While the asset management landscape continues to evolve in response to market volatility and shifting investor sentiment, Perpetual’s ability to navigate outflows and optimise its expense base will be closely watched in the quarters ahead. The company has not provided specific guidance on inflow expectations but has highlighted its focus on maintaining disciplined cost controls and delivering on efficiency targets.
The coming months will likely be pivotal as Perpetual (PPT) continues to manage capital flows and reposition its investment offerings to better align with client demand across regions and asset classes.
