Perpetual Ltd (ASX: PPT) shares are starting the week in a positive fashion.
In morning trade, the ASX 200 financial stock is up 2% to $21.05.
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What's going on with this ASX 200 financial stock today?
Investors have been buying the financial services company's shares this morning following the release of its first quarter update.
According to the release, Perpetual's total assets under management (AUM) was $232 billion at the end of September. This represents a 2.3% increase from the end of June.
Management notes that this reflects favourable market movements and distributions of $9.2 billion, which more than offset net outflows of $2.2 billion and negative currency movements of $1.7 billion.
Its average AUM was higher at $230.2 billion compared to $222.1 billion in the June quarter.
The star of the show for the ASX 200 financial stock was the Barrow Hanley business. Its AUM was $88.9 billion, which is an increase of 5.6% compared to the June quarter. This was driven by positive market movements of $4.8 billion and net inflows of $0.6 billion, partially offset by negative currency movements.
Barrow Hanley's net inflows were concentrated in the Global Value equity and Global ESG Value equity strategies. US Equities and Emerging Markets strategies experienced outflows in the quarter
Elsewhere, TSW's AUM increased 1.6% to $32 billion, Perpetual Asset Management's AUM lifted 2.5% to $22.5 billion, and Pendal's AUM rose 1.3% to $44.7 billion. This offset a 2.8% decline in JO Hambro AUM to $35.1 billion and a 1.3% reduction in Trillium's AUM to $8.8 billion.
The Corporate Trust segment performed positively during the quarter. It grew its funds under administration (FUA) by 1.2% to $1.29 trillion during the quarter.
Wealth management update
The ASX 200 financial stock's Wealth Management segment recorded a 2% lift in total FUA to $21.9 billion.
But how much longer this business will be part of Perpetual remains to be seen. Management confirmed that it continues to pursue the sale of the business and will keep the market updated on its progress.
Commenting on the quarter, Perpetual's CEO, Bernard Reilly, said:
It was a positive quarter for the business, with each of our three business lines reporting growth in assets managed, assets under advice or administration, largely benefiting from continued growth in the markets in which they operate.
Our Corporate Trust business delivered another quarter of growth in funds under administration (FUA), continuing its role as a strong market participant in both debt markets securitisation and managed funds services. We also added new clients in our Digital and Markets segment, which continues to provide diversification and growth opportunities for our business.
