ASX Announcement
04 Oct 2002
Perpetual announced today that the funds under management (FUM) by its investment management division, Perpetual Investments, were $17.8 billion at 30 September 2002 ($19.4 billion at 30 June 2002).
Over the past 3 months, Perpetual Investments' funds under management have changed as a result of three factors:
- Continued strong inflows into the group's retail and masterfund products. Over the past 3 months, these net inflows totalled $980 million, averaging over $300 million per month. Inflows in September continued to be strong, notwithstanding volatility in world equity markets. Retail and masterfund FUM increased from $13.4 billion at 30 June 2002 to $13.6 billion at 30 September.
- Reduction in FUM in the institutional segment which has been closed to new clients since July 2000. This follows the resignation of one of Perpetual's senior portfolio managers in early September. As a result of lower relative fee scales, the decline in institutional FUM is not expected to have a material financial impact on Perpetual's half-year or full-year profit.
- Substantial declines in the value of equities on the Australian and international share markets.
Despite the decline in institutional FUM, Perpetual remains closed to new institutional clients. This is in line with the group's strategic focus to grow its retail and masterfund business where funds are held for longer periods and generate higher revenues.
Perpetual has had a positive response from financial planning, masterfund and institutional clients to the succession plans it recently implemented in Perpetual Investments. Research houses have reconfirmed their strong and positive ratings on Perpetual's retail funds over the past month. Perpetual remains one of only two Australian managers rated 5 stars by Morningstar which reconfirmed its 5 star rating on 11 September.