Perpetual's Corporate Trust division reached a record A$1.4 trillion in funds under administration, but that progress was outweighed by A$9.6 billion in first-quarter Asset Management outflows. Wealth Management remained stable as the proposed Bain Capital sale moved towards a targeted late-2026 completion.
- Corporate Trust FUA rises 2.8% to a record A$1.4 trillion
- Asset Management AUM falls 5.5% to A$212.0 billion
- A$9.6 billion in net Asset Management outflows, concentrated in US and global equities
- Wealth Management FUA holds at A$22.1 billion
- Bain Capital transaction remains subject to regulatory and court approvals
Corporate Trust reaches record scale
Perpetual's first quarter delivered a striking split: Corporate Trust reached a record A$1.4 trillion in funds under administration, while Asset Management lost A$9.6 billion in net funds. The result leaves the group with a growing administration engine, but a shrinking pool of managed assets that remains central to its investment business.
Corporate Trust funds under administration rose 2.8% during the three months to 30 September 2026. Debt Market Services increased 2.6% to A$773.5 billion, supported by new issuance, higher transaction volumes and new clients, including a global bank. Managed Funds Services rose 3.1% to A$613.5 billion, helped by Singaporean funds-sector clients and portfolio growth among existing sovereign wealth and global asset management customers.
Digital and Markets recorded a 9.5% increase in assets under administration to A$699.2 billion. Perpetual attributed that growth partly to the inclusion of assets from its Interfi Systems acquisition, as well as expansion in Perpetual Intelligence and PCT Markets Fixed Income products. The figures are operational rather than earnings measures, and the update does not disclose quarterly revenue, profit or cash flow.
Asset Management bears another heavy outflow quarter
Total Asset Management AUM fell 5.5% from A$224.4 billion at 30 June to A$212.0 billion at 30 September. Net outflows accounted for A$9.6 billion of the decline, or A$8.4 billion excluding cash, with a further A$2.4 billion reduction from currency movements and A$0.4 billion from market movements. The scale of the outflows extends the pressure described in Perpetual's prior-year asset outflow report and keeps client retention at the centre of the investment case.
Barrow Hanley was the largest contributor to the outflows, losing A$5.8 billion as its AUM fell 8.7% to A$82.0 billion. The US Large Cap Value strategy accounted for A$4.6 billion of outflows and Non-US Value for another A$1.1 billion. TSW lost A$1.2 billion, mainly from International Equity, while Pendal Asset Management recorded A$1.5 billion of outflows, largely from cash strategies.
There were pockets of resilience. Perpetual Asset Management attracted A$200 million of net inflows, supported by fixed income strategies, while Barrow Hanley's Emerging Markets strategies and J O Hambro's Global and International Opportunity strategies also drew money. Perpetual said it was progressing two exchange-traded fund offerings aimed at the US wholesale market, although launches remain subject to regulatory approvals.
Wealth Management sale remains on the critical path
Wealth Management was comparatively stable, with funds under advice flat at A$22.1 billion at quarter-end and average funds under advice rising 3% to A$22.2 billion. The proposed sale to Bain Capital remains subject to outstanding conditions, including regulatory and court approvals. Perpetual currently expects completion in the final quarter of calendar 2026, a timetable that follows the Bain Capital sale process covered earlier in the year.
The immediate tension is therefore clear. Corporate Trust is expanding across administration, issuance and market infrastructure, while Asset Management is still losing substantial funds in several major equity strategies. Whether new products and stronger fixed income flows can offset continued redemptions will become more important as the company approaches the proposed Wealth Management separation and reports its next flow update.
Bottom Line?
Corporate Trust is supplying scale, but the next quarter will test whether Asset Management can slow the redemptions that are eroding group AUM.
Questions in the middle?
- Will outflows from Barrow Hanley's US and global equity strategies moderate in the second quarter?
- Can the proposed US ETFs and fixed income initiatives generate material new inflows after regulatory approval?
- Will the Bain Capital transaction receive the remaining approvals in time for completion during the final quarter of 2026?