Perpetual Limited’s first quarter FY27 update reveals a divergence across its three divisions, with Corporate Trust reaching a record A$1.4 trillion in funds under administration while Asset Management continued to face outflows. The company’s Corporate Trust business expanded 2.8% over the quarter, cementing the division as a growth driver. The expansion was driven by activity in Debt Market Services, which benefited from new client wins including a global bank, alongside higher transaction volumes and new issuance activity. Managed Funds Services also grew, supported by new institutional clients from the Singapore funds sector and portfolio growth from existing sovereign wealth and global asset management clients.
The Asset Management division presents a markedly different picture, with total AUM declining to A$212.0 billion as at 30 September 2026, down 5.5% from A$224.4 billion in the prior quarter. The decline reflected net outflows of A$9.6 billion, or A$8.4 billion excluding cash, combined with unfavorable currency movements of A$2.4 billion and modest negative market impacts. Management attributed the outflows to a number of US and global equity strategies, with particular concentration in Barrow Hanley’s US Large Cap Value and Non-US Value strategies, which accounted for A$4.6 billion and A$1.1 billion in redemptions respectively. This outflow pattern suggests investor rotation away from traditional value strategies, a trend that has affected managers across the industry.
Within the Asset Management division, areas of stability and momentum did emerge. Barrow Hanley’s Emerging Markets strategies continued to attract net inflows, while J O Hambro’s Global and International Opportunity strategies saw positive flows. Fixed income strategies in Australia also attracted inflows across several boutiques. These pockets of demand suggest clients retain appetite for certain areas of the portfolio, though the broader trend remains challenging for the asset manager. The company also progressed strategic product initiatives, including two exchange-traded fund offerings targeted at the US wholesale market, with launches subject to regulatory approval completion.
Wealth Management remained flat during the quarter with funds under advice stable at A$22.1 billion, though average FUA increased 3% to A$22.2 billion. The company continues work toward completion of the previously announced sale of Wealth Management to Bain Capital, with management expecting closure in the final quarter of 2026 subject to remaining regulatory and court approvals.
Looking ahead, investors should monitor several developments. The ETF launches in the US market will test demand for Perpetual’s products in a highly competitive space and may provide a new growth avenue if regulatory approvals proceed smoothly. The progression of the Bain Capital sale, with expected completion before year end, will clarify the company’s future strategic shape. Flow trends in Asset Management will also warrant attention, particularly whether recent momentum in Emerging Markets and fixed income continues or whether outflow pressures persist in equity strategies. This announcement constitutes price-sensitive information and has been flagged as material by the ASX.
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About Perpetual Limited (ASX: PPT)
Perpetual Limited is an independent financial services group that provides investment management, wealth advice, and corporate fiduciary services globally. The company operates through three segments: Asset Management, which is a global multi-boutique asset manager; Wealth Management, offering financial planning and trustee services to high-net-worth clients; and Corporate Trust, providing fiduciary and digital solutions to the banking and financial industry. The company is headquartered in Sydney, Australia and was founded in 1886.
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