2019 has been a tumultuous year for many global fund managers as they witnessed geo-political ructions and macroeconomic events that have not been witnessed before. Many of the investment managers are bringing-in new strategies to cope up with the challenges. In light of the present scenario, let’s take a look at the recent steps taken by few investment managers trading on ASX.
IOOF Holdings Ltd (ASX: IFL)
IOOF Holdings Ltd (ASX: IFL), a leading provider of quality financial advice, products and services, has been making some senior management changes to stabilise and grow the business and rebuild trust with its stakeholders.
As part of its senior management review, the company recently announced two new executive changes:
- Gary Riordan, IOOF’s General Counsel, will be leaving the company, by the end of February 2020;
- David Chalmers will be joining as Chief Financial Officer (CFO), replacing David Coulter, who will be leaving the company at the end of February 2020.
The company is currently searching for CRO and expects to make an appointment in the first quarter of 2020. Over the past six months, IFL’s Chief Executive Officer and Managing Director Renato Mota has appointed two other senior executives:
- Melissa Walls – Chief People Officer
- Adrianna Bisogni – Group Company Secretary
In order to grow the scale of its business, the company is also in the process of acquiring ANZ’s OnePath Pensions & Investments (OnePath P&I) business. Recently, this acquisition got approval for Australian Prudential Regulation Authority (APRA) and the transaction between both the parties is expected to be completed by 31 January 2020.
Notably, in the past six months, IFL’s stock price has increased by 57.59% as on 18 December 2019. At market close on 19 December 2019, IFL was trading at a market price of $8.130, up by 1.372% on last close, near to its 52 weeks high price.
Pendal Group Limited (ASX: PDL)
Pendal Group Limited, an independent active global investment manager, expanded its capabilities into responsible investment funds management by appointing an impact investment team to join the Group as well as to set up a Global Equity Impact strategy.
This will be a four-person team which will be led by a Senior Fund Manager Tim Crockford and it will be based in the J O Hambro Capital Management office in London. The main focus of the team will be to generate long term outperformance by investing in mission-driven companies that generate value for investors.
How did PDL perform last year?
During the last financial year, PDL’s cash net profit after tax and EPS contracted 19 per cent from the prior year, impacted by the significantly lower performance fees and a difficult flow environment, particularly in the UK and Europe. For the Australian business, 2019 saw strong flows into the company’s cash and fixed interest products with net positive flows of $2.0 billion, as a number of clients parked their cash holdings in light of global uncertainty, the federal election at the time and repercussions from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. During the year, the company had further outflows of $3.3 billion from its book of business with Westpac largely due to the ongoing transition of Westpac’s corporate superannuation book.
Platinum Asset Management Limited (ASX: PTM)
While some wealth managers are strengthening their leadership teams to tackle and grow in this challenging environment, some wealth managers are offering highly differentiated investment style to sustain and grow in this environment. Platinum Asset Management Limited is one such wealth manager which has been working to substantially reposition its business to be more globally focussed and outward looking.
During FY19, Platinum established a new distribution office in London, with a team of three staff, focussed on strengthening its distribution efforts in the UK and Europe, with a particular focus on its European investment vehicles, which were launched around four years ago and currently have around $400 million in FUM. The company’s London team, with the support of its team in Australia, has been busy servicing its existing European client relationships, building new relationships and expanding its ability to access new European markets.
Additionally, the company has laid its foundations in North America by leveraging its existing distribution relationship with Access Alpha.
At the end of October 2019, Platinum’s Funds under Management (FUM) was $24.6 billion, which represents a decrease of 0.7% from the 30 June 2019 FUM of $24.8 billion, mainly caused by the lag effect of net fund outflows.
Pinnacle Investment Management Group Limited (ASX: PNI)
Pinnacle Investment Management Group Limited (ASX: PNI) recently entered into agreements to acquire a 25% equity interest in Coolabah Capital Investments Pty Ltd, a leading long-only and long-short active investment-grade credit manager which currently is responsible for managing around $3 billion of institutional and retail investment. Key terms of the agreements include:
- Pinnacle will acquire a 25% interest in CCI for $29.1m, together with a further $5m upon the business achieving certain milestones over the next 18 month to 4.5-year period;
- CCI and Pinnacle have entered into a global distribution partnership in which Pinnacle will share revenues from capital raised in the institutional, retail and offshore distribution channels;
- The acquisition is subject to certain limited conditions precedent;
- Pinnacle and remaining shareholders will enter into an agreement with standard minority shareholder and governance protections for Pinnacle;
- The acquisition is subject to certain limited conditions precedent;
- Completion is expected to occur on or about 16 December 2019 and is funded by a facility from the CBA announced previously.
At market close on 19 December 2019, PNI stock was trading at a price of $4.790 with a market cap of around $865.27 million.
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