Why the Pendal (ASX:PDL) share price is on watch today

The Pendal Group (ASX: PDL) share price is one to watch in early trade after the investment group announced a change in leadership.

The Pendal Group (ASX: PDL) share price is on watch this morning after a leadership announcement from the company prior to the market open.

Why is the Pendal share price one to watch?

Pendal is an independent, global investment management group founded in 2007. Formerly known as BT Investment Management, Pendal has ~$100 billion in funds under management (FUM) with a market capitalisation of $2.0 billion.

The Pendal share price is on watch this morning after a Pendal Group CEO Succession announcement. Pendal announced that CEO Emilio Gonzalez will step down after 11 years in the role.

Nicholas Good, CEO of J O Hambro Capital Management (JOHCM) in the United States will be Mr Gonzalez's successor. JOHCM is a wholly owned subsidiary of Pendal's and a boutique investment management company with offices around the world.

Pendal chair James Evans said the "robust succession plan" has enabled the key appointment. Mr Gonzalez has a 6-month notice period and will look to enable a "smooth" transition.

Pendal shareholders have seen a 322.9% total return since Mr Gonzalez's appointment in January 2010. That compares to a 130.1% total shareholder return for the S&P/ASX 200 Index (ASX: XJO) over the same period.

What else is happening for Pendal?

The Pendal share price has fallen 4.9% lower to start the year. That's despite the investment group reporting a $5 billion increase in FUM in January 2021.

Pendal reported $97.4 billion in FUM at the end of last year despite net outflows of $1.6 billion. Shares in the Aussie investment group are up 40.5% in the last year.

The Pendal share price is trading at a price-to-earnings (P/E) ratio of 16.2 with a 5.9% dividend yield prior to Tuesday's market open.

Foolish takeaway

The Pendal share price is one to watch in early trade after the company's latest leadership announcement. Investors have received strong shareholder returns during Mr Gonzalez's tenure and will be watching the company's shares closely following today's update.

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.

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