Why the Perpetual (ASX:PPT) share price is falling today

The Perpetual Limited (ASX:PPT) share price has slumped nearly 4% in early trade after a trading update from the investment manager.

| More on:
falling asx share price represented by woman falling through mid air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Perpetual Limited (ASX: PPT) share price is trending lower today after the company released a second quarter business update.

Why is the Perpetual share price falling?

The Perpetual share price is on the slide this morning after the Aussie fund manager provided an update for the quarter ended 31 December 2020 (Q2 2020). Perpetual's total assets under management (AUM) came in at $89.2 billion. That came after the completion of its Barrow, Hanley, Mewhinney & Strauss (Barrow Hanley) acquisition on 18 November 2020.

Perpetual acquired a 75% stake in United States investment manager Barrow Hanley, tripling its assets under management. The acquisition also expanded Perpetual's reach in the US as it builds out its global investment capabilities.

The Perpetual share price is down 3.6% at the time of writing following this morning's update. CEO and managing director Rob Adams said Perpetual is seeing "positive momentum" in FY21 across all divisions.

Perpetual Asset Management Australia's total AUM fell 2% to $22.7 billion due to outflows from its enhanced cash mandate. Positive market returns as well as improved Aussie equities performance helped to offset these outflows. Excluding US-based ESG investment manager Trillium, the segment's total average AUM for the quarter was $23.5 billion compared to $23.3 billion for the September quarter.

Perpetual Asset Management International's total AUM, including Trillium and Barrow Hanley, came in at $66.5 billion. 

Mr Adams said Perpetual's new adviser growth strategy helped drive positive net flows into Perpetual Private during the quarter. Perpetual Private funds under advice (FUA) climbed 6% to $15.5 billion with positive net inflows of $0.2 billion.

Perpetual Corporate Trust's FUA climbed 1% higher to $936.2 billion for the quarter with strong growth across a number of segments including Managed Fund Services (MFS) and Debt Market Services (DMS).

Foolish takeaway

The Perpetual share price is down nearly 4% in early trade following the company's latest trading update. The benchmark S&P/ASX 200 Index (ASX: XJO) has edged 0.1% lower to 6,818.50 points in a soft start to the day.

Should you invest $1,000 in Aurizon Holdings Limited right now?

Before you buy Aurizon Holdings Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Aurizon Holdings Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

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.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Healius, Light & Wonder, REA Group, and Regis Resources shares are falling today

These shares are ending the week in the red. Let's find out why.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ANZ, Brainchip, Light & Wonder, and Pilbara Minerals shares are falling today

These shares are tumbling on Thursday. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aurizon, JB Hi-FI, Nuix, and Platinum shares are tumbling today

These shares are falling on hump day. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why HMC Capital, Platinum, Sigma, and Skycity shares are dropping today

These shares are having a tough session on Tuesday. But why?

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

ASX 200 energy shares plunge on shock OPEC move

ASX 200 energy shares like Woodside and Santos are tumbling on Monday. Let’s find out why.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Brainchip, Helia Group, Reliance Worldwide, and Westpac shares are dropping today

These shares are starting the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

These were the worst-performing ASX 200 shares in April

These shares were out of form last month. But why?

Read more »