How Did Perpetual Achieve 2.5% AUM Growth to A$226.8bn Amid Market Challenges?
Perpetual Limited reported a 2.5% increase in assets under management to A$226.8 billion for Q4 FY25, driven by strong market performance and inflows. The company reaffirmed its expense guidance and continues to pursue the sale of its Wealth Management business.
- 2.5% growth in total assets under management to A$226.8 billion
- Corporate Trust business shows steady growth supported by securitisation
- Expense guidance for FY25 reaffirmed between A$740-750 million gross
- Significant pre-tax items expected between A$195-205 million, including potential impairments
- Ongoing pursuit of Wealth Management business sale and cost savings from Simplification Program
Robust Asset Growth Amid Market Volatility
Perpetual Limited has reported a solid 2.5% increase in its total assets under management (AUM), reaching A$226.8 billion as of 30 June 2025. This uplift was primarily driven by favourable market movements and net inflows across its diversified asset management boutiques and wealth management divisions. Despite ongoing market volatility, the company’s global equity boutiques, including Barrow Hanley and J O Hambro Capital Management, contributed positively, with Barrow Hanley’s AUM rising to A$84.2 billion.
The Corporate Trust segment also demonstrated resilience, growing its funds under administration to A$1.27 trillion. This growth was supported by continued securitisation activity, particularly in the non-bank residential mortgage-backed securities market, and steady demand for custody and administration services.
Expense Guidance and Strategic Cost Management
Perpetual reaffirmed its FY25 gross expense guidance in the range of A$740 million to A$750 million, reflecting disciplined cost management amid challenging market conditions. The company also anticipates significant pre-tax items between A$195 million and A$205 million for the year ending 30 June 2026. These include potential impairments related to goodwill and other intangible assets, particularly within its boutique investment businesses, as part of an ongoing asset review process.
Complementing these efforts, Perpetual’s Simplification Program has delivered A$30 million in annualised cost savings as of June 2025, progressing towards a broader target of A$70 to A$80 million by June 2027. This initiative aims to streamline operations and enhance efficiency across the group.
Wealth Management Sale and Future Outlook
The company continues to actively pursue the sale of its Wealth Management business, engaging with interested parties and maintaining transparent communication with the market. Wealth Management’s funds under advice grew modestly by 2% to A$21.5 billion during the quarter, supported by positive market movements despite flat net flows.
Looking ahead, Perpetual is focused on product innovation and long-term investment performance, with several boutiques exploring new strategies to adapt to evolving market dynamics. While challenges remain, particularly in certain value-style equity strategies and international markets, the company’s diversified platform and disciplined approach position it well for sustainable growth.
Bottom Line?
Perpetual’s steady AUM growth and cost discipline set the stage for strategic shifts, but the Wealth Management sale and asset impairments warrant close investor attention.
Questions in the middle?
- What will be the final impact of potential asset impairments on Perpetual’s balance sheet?
- How will the ongoing Wealth Management sale negotiations influence the company’s strategic direction?
- Can Perpetual’s boutiques sustain growth amid continued market volatility and evolving investor preferences?
