Why the Perpetual (ASX:PPT) share price is in focus

The Perpetual Limited (ASX: PPT) share price is one to watch this morning after the Aussie investment manager's March quarter update.

The Perpetual Limited (ASX: PPT) share price is one to watch after the Aussie investment manager's latest quarterly update.

A mature aged man looks unsure, indicating uncertainty around a share price

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Why is the Perpetual share price in focus?

Perpetual this morning provided a business update for the period ended 31 March 2021 (Q3 2021). The Aussie investment group reported total assets under management (AUM) of A$95.3 billion, up 6.8% from the previous quarter. 

Australia AUM climbed 4.4% to $23.7 million while Perpetual Asset Management International AUM climbed 7.7% to $71.6 million.

Fixed income saw the only positive net flows across asset classes on a combined basis during the quarter but still edged lower to $20.6 million in AUM. The asset class was the worst performing segment for the quarter given strong gains across equities.

Net outflows were A$892 million which were offset by A$5.3 billion in asset growth thanks to a strong market. A positive currency impact of A$783 million also helped boost overall performance for the quarter.

The Perpetual share price is one to watch in early trade following this morning's update. Total combined equities experienced A$1.4 billion in net outflows for the quarter but also saw the strongest gains. That was particularly the case for US equities which gained A$4.9 billion in value as well as $0.5 billion in favourable currency movements.

Perpetual Corporate Trust's Funds under Administration (FUA) grew by 1% to A$942.9 billion during the quarter. The Aussie fund manager cited "continued momentum" from its adviser growth strategy in Perpetual Private. That included a 4% gain in Funds Under Advice to A$16.1 billion with A$0.2 billion of positive net inflows.

Foolish takeaway

The Perpetual share price is one to watch given its strong recent gains. Shares in the investment manager are up 25.1% since the start of November to $33.80 per share.

Today's quarterly update reflected the bullish equities markets seen in the first quarter which more than offset the net outflows from institutional accounts.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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