Funds outflow at Perpetual from Australian equities arm
The fund manager’s Australian assets under management came in at $22.7bn in the December quarter, down 2 per cent from the September quarter.
Shares in funds house Perpetual fell 4.8 per cent after the blue chip fund manager revealed funds outflow in its Australian equities arm.
The fund manager’s Australian assets under management came in at $22.7bn in the December quarter, down 2 per cent from the September quarter.
But the outflow was mainly driven by a $1.7bn outflow from a low-margin institutional “enhanced cash” mandate, largely offset by $2.2bn growth in shares and assets under management amid improved market conditions and a strong performance from Australian equities in particular.
Total average assets under management for the three months to end December, was $23.5bn compared to $23.3bn for the September quarter,
Like other value managers, Perpetual has suffered a challenging decade in which funds increasingly rotated to growth, even through the Covid crisis. Recent signs point to the beginnings of a rotation back to value.
“During 2020, investment markets went through significant volatility, and our investment capabilities across all asset classes have weathered this well, finishing the year strongly,” Perpetual chief executive Rob Adams said.
“Over the last quarter we have seen a positive rotation to value stocks and our performance relative to benchmark has improved significantly across our Australian equity funds in particular,” he said.
Shares in Perpetual closed down 4.8 per cent, or $1.73, at $34.16.
Perpetual’s international division, created by the July acquisition of Texas-based fund manager Barrow Hanley, had assets under management of $66.5bn as of end-December.
Perpetual paid $448m for the 75 per cent stake in Barrow Hanley, giving the Australian fund manager new investment strategies across asset class and geographies.
Perpetual Corporate Trust saw funds under administration rise 1pc to $936.2bn, helped by securitisations by banks.
Perpetual’s environmental, social and governance focused manager Trillium recently launched in the local market in August, have also seen “high” investor interest, Mr Adams said.
Mr Adams said the recent Barrow Hanley acquisition, together with the earlier buyout of Trillium, Perpetual’s asset management businesses are well positioned for future growth.
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