Perpetual previously revealed it would undergo a major transformation, with KKR set to acquire its wealth management and corporate trust divisions for $2.175 billion. Pending approval, this strategic move is expected to simplify Perpetual into an elegant debt-free multi-boutique asset manager, sharpening its focus exclusively on fund management.

In its latest listing on the ASX just last week to announce its upcoming AGM, Perpetual said: “Our multi-boutique business consists of quality investment teams across seven boutiques and brands with diversified equity, cash and fixed income investment opportunities, multiple assets and sustainable investment and a strong presence in key markets around the world”.

Despite the net outflows, Perpetual’s asset management business increased its assets under management from $212.1 billion to $215.0 billion in fiscal 2024. The firm attributes this growth to its robust model that utilizes a diverse mix of equities, bond markets, regions and client channels.

"While the board recognizes that there is still work to do to maximize the value of Perpetual's more recent acquisitions, particularly the Pendal Group, we are confident that the strength of the brands, together with their outstanding investment teams, will support the long-term growth of our business with asset management," said the firm's outgoing president, Tony D'Aloisio.

Sharing optimism as he handed over the reins to Bernard Riley earlier this month, former chief executive Rob Adams highlighted Perpetual's readiness to enter its next chapter as a global multi-boutique asset manager. In his latest address to shareholders, Adams emphasized that with a strong balance sheet and broad global footprint, Perpetual is well positioned for significant growth in key markets and channels.

This renewed sense of confidence in the firm comes despite a challenging year for Perpetual's asset management business, which faced a total of $18.4 billion in net outflows.

Outflows were mainly concentrated in JO Hambro's Global and International Select strategies, as well as outflows in the JO Hambro UK Dynamic strategy following the departure of a portfolio manager. But the firm also experienced net outflows in TSW International Equity capacity, driven by partial client redemptions due to portfolio rebalancing and asset allocation changes.

"While this result is disappointing, our asset management business was generally supported by stronger markets during the year, which offset the impact of net outflows," Adams said at the time.

Reflecting on the decision to split Perpetual, the former CEO explained that the firm's 2018 transformation strategy. is designed to combat the weakening competitive position in asset management and to meet the significant investment needs in corporate trust and wealth management. These strategic objectives were effectively realized through the sale of KKR.

Moreover, Perpetual's bold decision to focus exclusively on asset management gained further confidence from the strategic acquisitions of Trillium, Barrow Hanley and Pendal Group. These deals not only added significant scale, but also provided a crucial boost by reducing the firm's previously heavy reliance on Australian equities.

As Perpetual prepares for a shareholder vote on the KKR deal at the end of 2025, the firm is counting on unanimous support to provide an immediate cash injection to pave the way for future growth.

"The board is confident that retaining ownership of our asset management business will unlock enhanced returns for shareholders over the long term," the chairman said.

Perpetual's general meeting is scheduled for October 17.