It's looking like this Wednesday's session will be another bleak one for ASX investors. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has dipped by around 0.1%, pulling the ASX 200 back under 7,970 points. But let's talk about one ASX 200 stock that's doing far worse than that.
That ASX 200 stock is fund manager Perpetual Ltd (ASX: PPT). At the time of writing, Perpetual shares have plunged 1.05% down to $22.51 each after the company closed at $22.75 yesterday.
So why has this fund manager dropped by ten times more than the broader market this Wednesday?
Image source: Getty Images
ASX 200 stock dives on AUM update
Well, it probably has something to do with the business update that the ASX 200 stock released this morning, covering the fourth quarter of FY2024 (the three months ended 30 June).
This business update revealed that Perpetual has experienced a significant outflow of funds – the lifeblood of any fund manager – over the quarter in question. Perpetual revealed that its total assets under management (AUM) fell from $227.4 billion as of 31 March to $215 billion on 30 June. That's a fall worth 5.45%.
This $12.4 billion deficit was made up of $8.9 billion in net outflows, with another $2.1 billion lost for currency movements and $1.4 billion gone thanks to negative market movements and fund distributions.
Additionally (or perhaps as a result of these outflows), Perpetual told investors that it now anticipated that "significant items post tax for FY24 are expected to be within the range of A$140 million to A$150
million".
Here's some of what Perpetual CEO Rob Adams had to say on these announcements:
The June quarter showed a mixed performance across our business divisions, with Corporate Trust and Wealth Management delivering steady performance, while Asset Management experienced a difficult quarter impacted by net outflows, markets and currency movements.
Our Asset Management business was impacted by the timing of several institutional client redemptions and short term delays in expected new institutional inflows in specific strategies, as well as softer equity markets in Australian and global indices…
Overall, investment performance has been robust with 66% of our strategies outperforming over a
three-year basis to 30 June 2024…
So it's clear that ASX 200 stock market investors didn't exactly appreciate this news out of Perpetual today, which is probably responsible for the company's lacklustre share price performance this session.
Perpetual share price snapshot
Unfortunately, today's underperformance by this ASX 200 stock is nothing new for Perpetual investors to digest. This company has had a pretty rough few months on the markets, with the Perpetual share price down around 12.7% year to date.
Perpetual shares have also lost close to 14% over the past 12 months, a period which has seen the ASX 200 stock market rise by just under 9%. Check that out for yourself below:
At the current Perpetual share price, this ASX 200 stock has a market capitalisation of $2.57 billion, with a dividend yield of 5.78%.
