Pendal Group Limited (ASX: PDL) operates in the financial sector as a global investment management company. The company provides services like portfolio management and advisory services to trusts, private funds, individuals, institutions, charitable organisations, and investment companies. It operates in many regions including Australia, United States, Asia etc. With funds under management of $100.9 billion (as of 31st March 2019), it is one of the largest investment companies listed on the ASX.
On 12th April 2019, the company has announced the latest update for its funds under management, for the quarter ended 31st March 2019 and the performance fees charged for the year ending 30th June 2019.
Pendal Australia was able to increase its fund under management (FUM) from A$44.4 billion as at closing on 31st December 2018 (previous quarter) to A$48.6 billion as at closing on 31st March 2019 (current quarter). This denotes a total increase of A$4.2 billion or 9.45%. The primary reason for the inflow is lower margin cash. The major inflow was seen from the institutional side wherein a total of A$2.8 billion, was added to the previously reported number of A$17.3 billion, increasing the fund to A$20.1 billion in the current quarter. This increase was partially been offset by the ongoing run-off of the Westpac legacy book.
The FUM of J O Hambro Capital Management (JOHCM) has also increased in the same period. JOHCM is a wholly owned subsidiary of Pendal headquartered in London and have offices situated in Boston, London, New York and Singapore. The company is specialised in active management of the fund. The total FUM of JOHCM increased from A$48.4 billion in the previous quarter to A$52.3 billion in the current quarter, representing an increase of around 8%. The US pooled fund increased majorly from A$13.4 billion to A$15.3 billion which was led by the international select and global income builder strategies. Whereas the fund from Open-ended investment company (OEICs) which has the highest weighting in the fund merely increased by A$0.4 billion from A$20.3 billion to A$20.7 billion in the current quarter.
The combined fund from Pendal Australia and JOHCM increased by A$8.1 billion from 92.8 billion in the previous quarter to A$100.9 in the current quarter. However, the net flows of Pendal Group have impacted its revenue during the March quarter which is decreased to annualised fee income of -A$7.5million. The FUM of JOHCM has also been impacted by the fluctuations in the forex market. Over the current quarter, the Australian dollar weakened by 2.6% against the British pound and strengthened 0.4% against the US dollar. All these changes combined increased the FUM by A$0.7 billion in the current quarter.
On 7th February 2019, the company announced that it had increased its stake to 100% in Regnan.
On 14th January 2019, updates on fund under management for the quarter ended 31st December 2018 had been announced by the company.
Pendal Group has a market capitalisation of A$2.97 billion. On the technical front, the stock of the company last traded, slightly negative by 0.428% at A$9.300 on ASX after making an intraday low of A$9.230 as on 12th April 2019. In the last six months, the stock has given a return of 16% while the YTD return stands at 21.6%.
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