Perpetual posted a statutory after-tax loss of $472.2 million for the full year ended June.

In an announcement on Thursday, the ASX confirmed that the $547 million pre-tax impairment due to net outflows it noted earlier this week weighed on the results.

This includes net outflows of $8 billion from JO Hambro’s UK Dynamic and Global and International Select strategies and $3 billion from TSW’s International Equity strategy.

In full-year results, underlying profit after tax (UPAT) was $206.1 million, up 26% from the prior corresponding period, while operating income rose to $1.3 billion, up 32% from 22- 23 financial years.

The board also declared a final dividend of $0.53 per share, 50 percent franked.

According to Perpetual's outgoing chief executive Rob Adams, who is due to hand over the reins to Bernard Riley in September, the positive impact of Pendal's inclusion in the asset management business has been largely overshadowed by outflows.

"In asset management, although we saw some of the positive impact of the inclusion of Pendal Group in our business, our performance in FY24 was impacted by larger than expected net outflows, which was clearly disappointing," Adams said.

However, supported by improving equity markets and solid investment performance across many of Perpetual's boutique teams, the firm's asset management unit reported an increase in total assets under management to $215 billion over the year.

Asset management revenue was $887.6 million, a 48% increase over the prior corresponding period.

About 66 percent of the strategies beat the benchmark in the three-year period to June 30, 2024, Adams said.

"Solid" client interest in global and emerging markets and fixed income strategies at Barrow Hanley also saw net inflows of $3.4 billion in these opportunities.

“In Australia, we saw positive momentum in net flows, driven by Perpetual's Australian credit and fixed income opportunities and the improvement in Australian equity net flows. Pendal was impacted by small institutional client losses and super fund client mergers,” Adams said.

It noted $3 billion in gains from new institutional clients expected to fund this quarter, and additional gains in various equity strategies and boutiques expected to fund in the first two quarters of the new financial year.

On the wealth management side, the CEO described “strong organic growth,” particularly in its Fordham accounting practice and in non-market revenue.

Wealth Management delivered an underlying profit before tax (UPBT) of $54 million, up 15 percent, driven by continued growth across all business segments, continued contributions from financial planning boutique Jacaranda in the pre-retirement segment and a strong performance by Fordham .

The corporate trust reported UPBT of $85 million, up 4 percent, while assets under administration were about $1.2 trillion, also up 4 percent.

Update on KKR transaction

The ongoing confirmed estimated net cash proceeds from the transaction of its wealth management and corporate trust business are expected to be in the range of $8.38 to $9.82 per share.

A transition services agreement to be entered into with KKR following completion is expected to cover a substantial portion of sunk costs over a period of 18 months (with two six-month extensions available) from completion.

The estimated sunk cost of the transaction is expected to be approximately $75 million per year before taxes.

Approximately $50 million per year of these costs will be covered by the agreement.

It also announced "organized changes" to the board pending completion of the deal, with chairman Tony D'Aloisio set to leave in early 2025. He has been chairman since 2017.

Following D'Aloisio's retirement from the board, Gregory Cooper, who was appointed vice chairman in May 2024, will assume the role of chairman.

Independent non-executive directors Ian Hammond and Nancy Fox AM will also retire at the annual general meeting in October, in line with Perpetual's board rotation policy.