Perpetual Reports 3.6% AUM Decline to A$219.2 Billion in Q3 FY26 Update

• Asset Management AUM declined 3.6% to A$219.2 billion
• Net outflows of A$2.8 billion mainly from J O Hambro and Barrow Hanley boutiques
• Corporate Trust business showed steady growth, reaching A$1.32 trillion FUA
• Wealth Management sale to Bain Capital on track for completion later in 2026
• FY26 expense growth guidance maintained at 1-2%

Asset Management Faces Currency and Outflow Headwinds

Perpetual Limited (ASX:PPT) reported a 3.6% decline in total assets under management (AUM) to A$219.2 billion for the quarter ended 31 March 2026. The drop was driven by a combination of net outflows totaling A$2.8 billion (or A$4.9 billion excluding cash), negative market movements of A$1.9 billion, and an adverse currency impact of A$3.6 billion as the Australian dollar strengthened against the US and UK currencies.

Two of Perpetual’s key boutiques, J O Hambro Capital Management and Barrow Hanley, bore the brunt of the outflows. J O Hambro’s AUM fell 10.6% to A$30.9 billion, hit by A$2.5 billion in net outflows primarily from its Global Opportunities, International and Global Select, and UK Equity Income strategies. Barrow Hanley’s AUM dropped 2.8% to A$85.2 billion, with significant withdrawals from its Large Cap Value and Non-US Value equity strategies. Meanwhile, Perpetual’s Australian boutiques bucked the trend, recording net inflows in equities, fixed income, and cash strategies, suggesting some resilience in domestic markets.

Corporate Trust Business Maintains Momentum

The Corporate Trust division continued to underpin Perpetual’s overall performance, with funds under administration (FUA) growing 0.3% to A$1.32 trillion. Within this segment, the Debt Markets Services division saw a slight 0.5% decline to A$730 billion, offset by growth in non-bank securitisation products. Managed Funds Services rose 1.3% to A$588.2 billion, buoyed by new client wins and trust launches, while Digital and Markets’ assets under administration increased 1.6%, driven by adoption of Perpetual’s Intelligence SaaS products.

Wealth Management Sale Progresses Toward Completion

Perpetual reiterated that the sale of its Wealth Management business to Bain Capital Private Equity remains on track to complete later this year, subject to customary conditions. The division’s FUA was steady at A$21.1 billion, with flat net flows but a 4% decline due to negative market movements. This transaction, first announced in March, marks a strategic pivot for Perpetual to focus on its asset management and corporate trust operations. The sale proceeds are expected to support debt reduction and reinvestment in core businesses, a move highlighted in the company’s prior update on the deal’s financial terms and timing.

CEO Bernard Reilly emphasised the business’s resilience amid ongoing global market volatility, noting that over half of Perpetual’s investment strategies outperformed their benchmarks over three and five years. This performance, however, contrasts with the recent net outflows in some overseas boutiques, reflecting client portfolio rebalancing and selective underperformance.

Perpetual’s expense growth guidance for FY26 remains unchanged at approximately 1% to 2%, indicating disciplined cost management despite fluctuating market conditions and currency impacts.

This quarterly update follows the company’s recent DRP price setting announcement, which reinforced steady shareholder returns amid the challenging environment.

Bottom Line?

Perpetual’s ability to manage currency headwinds and client outflows while advancing the Wealth Management sale will be critical to sustaining its strategic refocus and financial stability.

Questions in the middle?

• Will Perpetual’s Australian boutiques continue to attract inflows as global strategies face pressure?
• How will currency fluctuations impact Perpetual’s AUM and earnings through the remainder of FY26?
• What are the key milestones and risks ahead for the completion of the Wealth Management sale?