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 Commonwealth Bank of Australia Ltd (ASX: CBA) share price fell 1.1% lower on Friday while the broad market index closed broadly flat.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
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.
- Why the HomeCo (ASX:HDN) share price is one to watch – February 17, 2021 9:38am
- EBOS (ASX:EBO) share price on watch after dividend surge – February 17, 2021 9:01am
- A turbulent tale of 2 ASX biotech shares: Polynovo (ASX:PNV) and Pro Medicus (ASX:PME) – February 15, 2021 11:28am