Pendal Group’s (ASX:PDL) funds under management rise in December

Summary

  • Pendal Group has reported an increase in funds under management for the quarter ended December 2020.
  • It has also reported significant improvement in JOHCM performance fee, which would be partially recorded in the current financial year.

Pendal Group Limited (ASX:PDL) has reported funds under management (FUM) update for the period ended 31 December 2020. During the quarter, its FUM increased 5.4% or $5 billion to $97.4 billion.

A rising Australian Dollar against major currencies impacted the FUM by $2.7 billion, while investment outperformance and strong markets led to a FUM uplift of $9.3 billion.

Source © Kalkine Group 2021

Net outflows of $1.6 billion were recorded primarily in J O Hambro Capital Management UK strategies and client re-balancing and profit-taking from high performing investment strategies.

Pendal estimated $41.2 million JOHCM performance fee for the 12 months to 31 December 2020, up significantly from $0.6 million in the same period last year. The result was generated across six different investment strategies.

Source: PDL Announcement, 15 January 2021

Out the $41.2 million, the performance fee would contribute $21.4 million to the group’s underlying /statutory profit after tax for the year ending 30 September 2021.

The performance fee for Pendal Australia will contribute to the second-half of the period. During the quarter, Pendal Australia’s FUM was up by $2.4 billion as investment performance offset outflows of $0.2 billion, which were primarily in low margin cash category in institutional channel.

In JOHCM, the net outflows were $1.4 billion primarily from outflows in the UK Dynamic OIEC ($0.8 billion) due to underperformance throughout the pandemic albeit an improvement in the December quarter.

In JOHCM institutional channel, the net outflows of $0.7 billion were recorded after clients rebalanced their portfolios. There was strong flow momentum in the US Pooled funds in the International Select Strategy.

Pendal said Regnan Global Equity Impact Solution will be launched in January after regulatory approval. The strategy will be launched through an Irish fund vehicle for the European market. The solutions will complement UK OEIC and Australian unit trust launched in December quarter.

At the time of writing, PDL was trading at $6.545, down by 2.02% from the previous close.


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   

Kalkine

Rated 4.3/5 based on 904 Reviews at Google My Business
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK