Perpetual assets drop amid $7.8B net outflows

Perpetual (ASX:PPT) has released its second-quarter business update for FY26, revealing a complex performance landscape across its global divisions.

Total assets under management fell 1.9% to $227.5 billion, primarily driven by net outflows of $7.8 billion and unfavorable currency fluctuations, which overshadowed $5.4 billion in positive market gains.

The downturn was most visible in the international boutiques.

Barrow Hanley saw a $3.3 billion decline due to mandate losses in global equities, while TSW and Trillium also reported elevated outflows.

The Australian asset management division showed resilience; the new Perpetual Diversified Income Active ETF and the Perpetual Credit Income Trust attracted fresh capital.

A bright spot for the group was the corporate trust division, where funds under administration grew 2.1% to $1.31 trillion, bolstered by strong demand in residential mortgage-backed securities.

Meanwhile, wealth management remained stable with $21.9 billion in FUA as the company continues "well-advanced" negotiations regarding a potential sale to Bain Capital.

Perpetual expects to recognise $10 million in performance fees for the half-year and remains ahead of its expense-reduction targets.

CEO Bernard Reilly emphasised that the group is focused on strategic execution and expects to provide a definitive update on the wealth management divestment during the February half-year results.