Perpetual, the Sydney fund manager, is facing a multi-million dollar costs bill after losing its long running court case to try and break apart the Washington H. Soul Pattinson and Brickworks cross shareholdings that is the core business of the multi-millionaire Milner family.
Perpetual (PPT) reported funds under management (FUM) ended the September quarter at $28.4bn, revealing outflows of $1bn in Australian equities from the institutional channel and $400m in inflows from the intermediary channel. The company also confirmed it has obtained a new $1bn institutional client mandate to manage Australian equities which is expected to fund the second quarter.
Funds under management totalled $26.3bn at the end of December, up 1% during the quarter. This was ahead of Credit Suisse estimates and the company has reported its first positive quarter of flows in nearly three years.
The investor briefing signalled to UBS that the Perpetual Private and Perpetual Corporate Trust divisions are well-positioned for solid growth. In comparison, prospects in Perpetual Investments remain more mixed, given a softer performance across the key Australian equity franchise.