Perpetual Faces Challenges as J O Hambro Outflows Persist Despite Market Gains

Strong Market Tailwinds and Strategic Momentum

Perpetual Limited has kicked off FY26 with a solid first quarter performance, reflecting growth across all its core business lines. The company’s total Assets Under Management (AUM) rose by 2.3% to A$232 billion, buoyed by favourable market movements and a moderation in net outflows. This positive momentum underscores Perpetual’s ability to navigate complex market conditions while continuing to innovate and expand its product offering.

Asset Management – Mixed Flows but Overall Growth

The Asset Management division saw a robust uplift in AUM, supported by strong global equity market returns. Notably, Barrow Hanley experienced a 5.6% increase in AUM, driven by net inflows into its Global Value and ESG strategies, despite some outflows in US Equities and Emerging Markets. Conversely, J O Hambro Capital Management faced net outflows and currency headwinds, prompting the appointment of a new CEO tasked with revitalising the boutique’s growth trajectory. Other boutiques such as Pendal and Perpetual Asset Management posted modest gains, with inflows concentrated in cash and fixed income strategies respectively.

Corporate Trust and Digital Growth

Perpetual’s Corporate Trust business continued its steady expansion, with funds under administration increasing by 1.2% to A$1.29 trillion. While the Debt Market Services division experienced a slight decline due to client portfolio rationalisation, the Managed Funds Services segment grew significantly, driven by new client wins in custody services. The Digital and Markets segment also contributed to growth, with assets under administration rising 0.6%, reflecting demand for Fixed Income Intelligence and Treasury SaaS products.

Wealth Management Amid Sale Process

Despite ongoing uncertainty related to the sale of its Wealth Management business, Perpetual reported a 2% increase in funds under advice to A$21.9 billion. This growth was supported by positive market movements and modest net inflows, suggesting resilience in this division even as strategic options are explored. The company has committed to keeping the market informed on progress regarding the sale.

Looking Ahead

Perpetual’s first quarter update highlights a business benefiting from favourable market conditions and strategic initiatives such as new product launches and leadership changes. The launch of the Perpetual Diversified Income Active ETF has attracted encouraging early interest, signaling potential for further growth in innovative investment products. Meanwhile, the new leadership at J O Hambro will be closely watched as the firm seeks to reverse recent outflows and strengthen its market position.