Perpetual Reports $25bn Asset Management Outflows

Perpetual reported $25.1 billion in asset management outflows during fiscal year 2026, with more than three-quarters of its fund boutiques experiencing net redemptions. The results highlight ongoing challenges for the Australian financial services firm as it handles shifting investor preferences and market headwinds.

Revenue and Assets Decline

Asset management revenue came in at $880.5 million, a 3 percent decrease from the prior year, largely driven by unfavorable foreign currency movements. Total assets under management stood at $224.4 billion as of June 30, 2026, down 1 percent from the previous fiscal year despite partial offset from stronger equity markets.

Barrow Hanley and JO Hambro each reported net outflows exceeding $7 billion, while Pendal lost $4 billion and TSW saw $5.1 billion in redemptions. Trillium experienced a smaller volume of outflows at $1.5 billion.

Strategy Shifts and Boutique Performance

Barrow Hanley faced $15.8 billion in outflows concentrated in active US equity strategies, though this was partially offset by $8 billion flowing into global strategies. TSW’s $6.7 billion in redemptions were concentrated in international equities, with the firm having previously flagged $6.4 billion in additional redemptions expected later this year from a single institutional client.

JO Hambro, currently managing $33 billion in assets, has launched an improvement process aimed at expanding into active ETF capabilities, achieving outperformance, and unlocking operational efficiencies. The boutique’s stated goal is to reach $60 billion in assets under management by the end of fiscal 2030 through diversified solutions and a scalable product range appealing to core global markets.

During the year, Perpetual also closed several funds including the $27 million Pendal Global Select fund, which operated for five years, and the $29 million Perpetual Dynamic Fixed Income fund, an absolute return vehicle established in 2010.

Leadership Responds to Challenges

Chief executive Bernard Reilly acknowledged the difficult flow environment during an earnings call. “While these flows were largely offset by stronger equity markets, we recognize that flows remain challenging across the business,” Reilly said. “That said, we continue to attract new client money across a range of strategies and regions.”

The CEO also addressed investment performance concerns, noting that fiscal 2026 underperformance was concentrated in select strategies, particularly within JO Hambro. “We also recognize we need to do a better job in delivering investment performance,” Reilly said. “FY26 underperformance was concentrated in select strategies, particularly within JO Hambro where we are taking the appropriate steps to strengthen investment teams and operations.”

Perpetual was the only boutique within the group to report net inflows, attracting $600 million during the year driven by client demand and continued momentum in active exchange-traded funds.

The firm pointed to its Australian distribution platform as a key strength, claiming relationships with more than 11,000 of the country’s 15,000 financial advisers. “Our Australian distribution platform remains a significant strength, providing deep client relationships, especially in the intermediary space,” Reilly said, adding that the platform helps connect investors with specialized investment capabilities across the firm’s boutiques.

Looking ahead, Reilly said the firm would focus on levers within its control, including product development and leveraging distribution to broaden reach.