Perpetual : Q2 2021 Business Update - January 2021

22 January 2021

ASX Limited

ASX Market Announcements Office

Exchange Centre

20 Bridge Street

Sydney NSW 2000

Dear Sir/Madam

Second Quarter 2021 Business Update

Perpetual Limited

ABN 86 000 431 827

Angel Place,

Level 18, 123 Pitt Street

Sydney NSW 2000

Australia

Phone [phone] www.perpetual.com.au

Perpetual Limited advises that it has released the quarterly business update for the period ended 31 December 2020 (as attached).

If shareholders or other interested parties have any queries regarding the update, they can contact:

Investors:	Media:
Marisa Zammit	Emma Rumble
Head of Investor Relations	General Manager, Corporate Affairs & Investor Relations
Perpetual Limited	Perpetual Limited
Tel: [phone]	Tel: [phone]
[e-mail]	[e-mail]

Yours faithfully

Sylvie Dimarco

Company Secretary

(Authorising Officer)

About Perpetual

Perpetual is an independent financial services group operating in funds management, financial advisory and trustee services. Our origin as a trustee company, coupled with our strong track record of investment performance, has created our reputation as one of the strongest brands in financial services in Australia. For further information, go to www.perpetual.com.au

Page 1

ASX Announcement

22 January 2021

Perpetual Limited ABN 86 000 431 827

Angel Place,

Level 18, 123 Pitt Street

Sydney NSW 2000,

Australia

Phone [phone] www.perpetual.com.au

Perpetual Limited (ASX:PPT) ("Perpetual") Second Quarter Business Update

• Perpetual's total Assets under Management (AUM) was A$89.2 billion1 as at 31 December 2020 following completion of the Barrow Hanley, Mewhinney & Strauss (Barrow Hanley) acquisition on 18 November 2020
• Perpetual Asset Management Australia's total AUM of A$22.7 billion was down 2% impacted by outflows from a low-margin enhanced cash mandate, offset by positive market returns and improved relative investment performance in Australian equities in particular
• Perpetual Asset Management International's total AUM was A$66.5 billion, inclusive of Trillium and Barrow Hanley
• Continued momentum from the adviser growth strategy in Perpetual Private with Funds under Advice (FUA) of A$15.5 billion up 6% including A$0.2 billion positive net inflows for the quarter
• Perpetual Corporate Trust Funds under Administration (FUA) of A$936.2 billion, up 1%

Chief Executive Officer and Managing Director, Rob Adams said, "We continue to see positive momentum in FY21 across all divisions. Over the last quarter, we completed our acquisition of Barrow Hanley and have accelerated our global distribution strategy. We now have a team of 70 distribution professionals across key regions, with a number of recent key appointments in the US. Together with our earlier acquisition of Trillium, our asset management businesses are well positioned for future growth, with greater diversity by client type, by geography and by asset class.

"Our diversified business model is delivering value with Perpetual Corporate Trust (PCT) continuing its growth trajectory and capitalising on new opportunities across its three businesses.

"We continue to see positive net flows in Perpetual Private (PP) driven by new flows from advisers who have joined the firm over the last year as a result of our new adviser growth strategy.

1 Total AUM translated at AUD:USD 0.77 as at 31 December 2020. PAMA and PAMI AUM is combined and remains subject to customary verification procedures. Barrow Hanley AUM is net of clients who have confirmed their intention to terminate as part of the acquisition client consent process

Page 1

"Unrealised gains2 for the half were $4.5 million (which excludes $1.1 million relating to Investing in Product Scheme). As advised in December 2020 at our Investor Day these gains will be excluded from our revised definition of UPAT.3

"Perpetual remains well capitalised, and although our focus is on bedding down our two recent US acquisitions, we will continue to explore further acquisitions across our businesses.

"We have continued to invest in key services for clients and as part of that program of work, we recently announced the appointment of State Street Australia Limited to provide custodial and fund administration services for our asset management business in Australia."

Perpetual Asset Management Australia

Perpetual Asset Management Australia's (PAMA) AUM as at 31 December 2020 was $22.7 billion or 2% lower than at 30 September 2020.

Net outflows for the three months ending 31 December 2020 was $2.7 billion, primarily driven by an outflow of $1.7 billion from a low margin institutional enhanced cash mandate, which has been largely offset by $2.2 billion in growth of asset values following the improved market conditions and strong performance in Australian equities in particular.

Total average AUM for the three months ended 31 December 2020, was $23.5 billion compared to $23.3 billion for the September quarter, excluding Trillium.4

Trillium's two strategies5 which were launched on 4 August 2020 in Australia and New Zealand, have seen strong performance against their respective benchmark, with the Trillium ESG Global Equity outperforming its benchmark by 3.77% and the Trillium Global Sustainable Opportunities by 8.38 % since inception.6

Mr Adams said, "During 2020, investment markets went through significant volatility, and our investment capabilities across all asset classes have weathered this well, finishing the year strongly. Over the last quarter we have seen a positive rotation to value stocks and our performance relative to benchmark has improved significantly across our Australian equity funds in particular.

Our investment teams have remained 'true-to-label' and it has been pleasing to see their discipline and the patience of our clients rewarded over recent months."

The most recent investment performance of our investment capabilities can be found in Appendix Two.

1. Unrealised gains are unaudited and as at 30 December 2020
2. For further information refer to the Investor Presentation lodged with the ASX on 9 December 2020
3. As advised in November 2020, non-Australian AUM for Trillium will now be recorded in PAMI. PAMA AUM inclusive of Trillium in the second quarter would have been $28.8 billion as at 31 December translated at the spot rate
4. AUM for two trillium Australian strategies will be included in PAMA performance results
5. Past performance is not indicative of future performance. The product disclosure statements (PDS) for the Trillium ESG Global Equity Fund and the Trillium Global Sustainable Opportunities Fund, each issued by Perpetual Investment Management Limited, should be considered before deciding whether to acquire or hold units in the respective fund. Each PDS is available on our website www.perpetual.com.au. The two Trillium strategies offered in Australia and New Zealand have comparable investment strategies to the equivalent Trillium strategies offered to US investors. The US strategies are offered by Trillium Asset Management, LLC.

Page 2

Perpetual Asset Management International

The Perpetual Asset Management International (PAMI) division was created on 18 November 2020 following the Barrow Hanley acquisition and includes Perpetual's 75% interest in Barrow Hanley and 100% of Trillium Asset Management.

Assets under Management (AUM) closed at A$66.5 billion (US$51.2 billion)7 as at 31 December 2020.

Mr Adams said, "Investor interest in Trillium's range of strategies in Australia, the US and Europe is high, and we are confident that positive new flows will build over time for their unique offering. Performance across Trillium's capabilities is strong and their unique heritage in ESG provides us with a clear competitive advantage.

"The completion of the Barrow Hanley acquisition and the formation of PAMI are transformational milestones in Perpetual's growth strategy.

"Barrow Hanley's investment performance has improved significantly across all capabilities as markets have rotated towards value in recent months, positioning us well for future growth."

At the recent Investor Day held in December 2020, we committed to providing more current Barrow Hanley and Trillium performance figures. Please see Appendix Two for further information. Future investment performance details will be provided at the half year and full year market updates.

Perpetual Corporate Trust

Perpetual Corporate Trust's (PCT) Funds under Administration (FUA) was $936.2 billion8 up 1% from $927.8 billion from 30 September 2020.

Mr Adams said, "PCT has maintained its momentum with continued growth from existing clients, new client mandates and client wins from competitors increasing PCT's market share across both Debt Market Services (DMS) and Managed Funds Services (MFS) business lines.

"The DMS business grew both in clients and FUA due to the strong growth in the non-bank sector, whose business models have demonstrated their resilience in a very competitive lending market.

"Authorised Deposit Taking Institutions (ADI's) private balance sheet securitisation has stabilised in the quarter due to access to funding through the RBA's Term Funding Facility. This has also meant that banks have not been as active in the public securitisation market.

"The MFS business has also continued to see growth in clients and FUA across all products (Trustee, Custody, Responsible Entity and Investment Management), despite the impacts of COVID-19.

1. Total AUM is translated at AUD:USD 0.77 as at 31 December 2020. AUM is combined and remains subject to customary verification procedures. As part of the client consent process Barrow Hanley AUM net of clients who have terminated or confirmed their intention to terminate
2. Includes Singapore FUA translated at the spot rate as at 31 December 2020

Page 3