Pendal (ASX:PDL) shares tumble on fallen funds under management

Image Source: © Thomaspajot | Megapixl.com

Highlights

  • The share price of PDL reaches its 52-week low at AU$5.330 at 11:40 AM AEDT, after declining by 10%, thanks to the ‘disappointing’ quarter.
  • Pendal Group revealed its funds under management for December quarter at AU$135.7 billlion.
  • J O Hambro Capital Management’s (acquired by Pendal) performance fees for 2021 was recorded at AU$43.4 million.

The share price of independent investment manager Pendal Group Limited (ASX:PDL) were spotted trading in red as the company announced its funds under management (FUM) today.

The shares of PDL touched their 52-week low and were trading at AU$5.330 at 11:40 AM AEDT after declining by 10%.

Why are Pendal shares falling today?

According to the ASX announcement, Pendal reported that its FUM stands at AU$135.7 billion for the quarter ended 31 December 2021, which is 2.5% lower than its September quarter. Even positive investment performance and market movements of AU$3.8 billion did not favour Pendal’s FUM.

Furthermore, the company reported a net outflow of AU$6.8 billion during the December quarter. The fund outflow has been driven by the AU$0.8 billion outflow in the Australian institutional

channels and AU$5.1 billion in EUKA’s (Europe, UK & Asia) segregated mandates. The outflow in EUKA’ segregated mandates happened because of redemptions by UK institutional clients.

JOHCM performance fee update

The company has realised a JOHCM (J O Hambro Capital Management) performance fee of around AU$43.4 million for the 12-month performance period to December quarter, compared to AU$41.2 million in the previous year. AU$22.4 million performance fee will be contributed in Statutory Net Profit After Tax and Underlying Profit After Tax for the year ending 30 September 2022.

JOHCM is an equities funds business which was acquired by Pendal Group in 2011.

Nick Good, CEO of Pendal, commented on the update,


 


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