Pendal (ASX:PDL) slumps on FUM jump

Company News

by Lauren Evans

Global investment management business Pendal (ASX: PDL) have recorded its funds under management (FUM) at $139.2 billion for the September quarter.

The acquisition of Thompson, Siegal & Walmsley helped boost Pendal's (ASX:PDL) funds under management to $139.2 billion. The fund manager saw a 30.5 per cent jump from June and attributed the acquisition to be one of the main contributors to the rise. Despite the positive results, the figures came in below expectations. 

“The acquisition of Thompson, Siegel & Walmsley LLC (TSW), delivered a step-change in FUM from $106.7 billion to $139.2 billion. For shareholders this is proving to be a value accretive acquisition," said CEO Nick Good. 

The total reflected on Pendal's outflows across its institutional channels and subsidiaries. Pendal's institutional segregated mandates were in outflow during the quarter due to the loss of a UK dynamic mandate of $0.4 billion and some profit taking in the Asia ex-Japan strategy of $0.1 billion.

Pendal's US subsidiary J O Hambro Capital Management saw further client re-balancing in their segregated mandates largely in the international select strategy of $0.2 billion. In Australia, net outflows were primarily a result of the full redemption of a low margin fixed income mandate of $0.8 billion due to the internalisation of a client’s portfolio.

While the company faced other outflows across its channels, strong netflows were also reported, including both the Regnan Global Equities Impact Solutions (RGEIS) and UK growth funds. 

”There was significant volatility in client sentiment leading to re-balancing of portfolios and profittaking, giving rise to outflows in a range of channels and strategies."

Pendal will release its financial results for the year ending 30 September 2021 on Friday 5 November next month. 

Shares in Pendal (ASX:PDL) are trading 13 per cent lower at $6.73. 

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