Pendal (ASX:PDL) posts $5 billion increase in FUM

The Pendal Group Ltd (ASX: PDL) share price slumped 3.0% lower on Friday despite announcing an increase in funds under management.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pendal Group Ltd (ASX: PDL) share price slipped 3% lower on Friday despite a funds under management (FUM) update from the Aussie investment group.

What did Pendal announce?

Last week, Pendal updated the market with its quarterly FUM update for the period ended 31 December 2020.

The company posted a $5.0 billion increase in FUM — up 5.4% on the prior quarter for a total period-end FUM of $97.4 billion.

The Aussie investment group cited strong markets and investment outperformance as triggering the uplift. However, negative currency impact of $2.7 billion and net outflows of $1.6 billion tempered the absolute $9.3 billion FUM increase.

Despite the update, the Pendal share price remained under pressure and fell 3.0% on Friday. It's also worth noting the broader market closed broadly flat on Friday after climbing in early trade. The S&P/ASX 200 Index (ASX: XJO) edged marginally higher to close at 6,715.4 points on Friday afternoon.

Pendal Group CEO Emilio Gonzalez said the FUM increase "continues to demonstrate the benefits" of the group's diversified business model.

The company also provided an update on its full-year J O Hambro Capital Management (JOHCM) performance fees. JOHCM is a boutique investment management business with offices in London, Singapore, New York and Boston specialising in the active equities management. According to Pendal's website, JOHCM managed assets of $53.1 billion as at 31 December 2019.

Performance fees totalled ~$41.2 million up from ~$0.6 million in the prior corresponding period. Six investment strategies, primarily the Global and International Select stratgies, generated the fees which will contribute $21.4 million to Pendal's statutory and underlying profit after tax.

JOHCM saw strong flow momentum into US pooled funds with the International Select strategy seeing consistent monthly inflows.

What about other ASX 200 Financials shares?

The Pendal share price slipped lower on Friday despite the FUM increase announcement. The 3.0% share price fall is in contrast to many of Pendal's ASX 200 Financials peers.

The Westpac Banking Corp (ASX: WBC) share price climbed 1.5% higher to $21.35 while Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares edged 0.2% higher to $24.66.

The Commonwealth Bank of Australia Ltd (ASX: CBA) share price fell 1.1% lower on Friday while the broad market index closed broadly flat.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

An arrow crashes through the ground as a businessman watches on.
Share Fallers

After falling 43% in a week, are Cochlear shares now a buy?

Is this drop a warning sign?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Brainchip, Fortescue, IGO, and Life360 shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

a woman sits next to her computer screen with her head in her hands with the screens slowing graphs on downward trajectories.
52-Week Lows

Can the beaten-down CSL share price ever reach $300 again?

CSL is near decade lows. Can it ever climb back?

Read more »

An arrow crashes through the ground as a businessman watches on.
Healthcare Shares

Cochlear stock down 40%: How much has this cost ASX investors?

One day can ruin years of success...

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Black Cat, Mirvac, Qantas, and Temple & Webster shares are falling today

These shares are having a tough session. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Bank of Queensland, Cochlear, Northern Star, and Paladin Energy shares are falling today

These shares are having a difficult time on hump day. But why?

Read more »

An older man wearing glasses and a pink shirt sits back on his lounge with his hands behind his head and blowing air out of his cheeks.
Share Fallers

Why ANZ, Challenger, Hub24, and Lynas shares are dropping today

These shares are under pressure on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Monash IVF, NAB, Viva Energy, and Worley shares are falling today

These shares are starting the week in the red. But why?

Read more »