Perpetual reports mixed results in FY26 second quarter update

Perpetual delivered a mixed FY26 Q2, with asset management outflows but growth in Corporate Trust and ongoing Wealth sale talks.

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The Perpetual Ltd (ASX: PPT) share price is in focus today after the company reported a mixed performance across its business divisions in its second quarter FY26 update, with total group assets under management decreasing to $227.5 billion.

What did Perpetual report?

  • Total assets under management (AUM) fell 1.9% to $227.5 billion at 31 December 2025.
  • Net outflows of $7.8 billion, or $6.6 billion excluding cash, in the quarter.
  • Corporate Trust's funds under administration (FUA) rose 2.1% to $1.31 trillion.
  • Wealth Management's FUA remained flat at $21.9 billion.
  • First-half 2026 performance fees expected to be about $10 million, mainly from J O Hambro and Perpetual Asset Management strategies.
  • 1H26 significant items (post tax) are expected between $54 million and $63 million, with no impairments anticipated.

What else do investors need to know?

Perpetual's Asset Management division saw net outflows and unfavourable currency movements, partially offset by positive market moves. Barrow Hanley and J O Hambro both experienced outflows, while Perpetual Asset Management recorded net inflows on new fixed income strategies.

The Corporate Trust arm delivered growth across all major segments, with particular strength in Debt Market Services and Managed Fund Services. Digital and Market Assets under Administration jumped 4.1% to $585.8 billion.

Discussions are ongoing with Bain Capital Private Equity over the sale of the Wealth Management business. While advanced, there is still no certainty the deal will go ahead, and more information is expected at the half-year results in February.

What did Perpetual management say?

Chief Executive Officer and Managing Director Bernard Reilly said:

The quarter saw a mixed performance across our businesses. Corporate Trust performed strongly across all three of its segments, Asset Management was impacted by net outflows and Wealth Management was stable despite the ongoing sale process for the business.

What's next for Perpetual?

Perpetual will provide another update on the potential Wealth Management sale as part of its half year 2026 results, scheduled for 26 February 2026. Management remains focused on keeping expense growth below guidance and continuing investment in the Corporate Trust business.

The outlook includes careful management of costs, as the company tracks positively against its 2%–3% full-year expense growth guidance. Investors can also expect further updates on assets under management performance and progress across the group's individual boutiques.

Perpetual share price snapshot

Over the past 12 months, Perpetual shares have declined 14% trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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