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Pendal Group share price lower following FUM update

James Mickleboro
investing, fund management

The Pendal Group Ltd (ASX: PDL) share price is dropping lower on Tuesday following the release of its latest quarterly update.

At the time of writing the fund manager’s shares are down almost 2% to $8.83.

How did Pendal perform in the December quarter?

According to the release, at the end of December Pendal Group’s funds under management (FUM) climbed 1% to $101.4 billion.

Management notes that the most significant impact on its FUM was higher markets. Over the period the MSCI All Countries World Index increased 7.4% in local currency terms.

Also supporting its FUM was Australian dollar weakness. It weakened 2.8% relative to the British Pound during the December quarter.

Combined, this managed to offset net outflows of $1.3 billion over the period. Whilst this is a large outflow, it is an improvement on the previous two quarters.

Performance fees.

The release advises that JOHCM performance fee revenue for the 12 months ended December 31 was approximately $0.6 million (£0.3 million).

As a result, it will contribute approximately $0.2 million to Pendal Group’s cash net profit after tax (and statutory net profit after tax) for the current financial year which ends on September 30 2020.

This compares to its JOHCM performance fee revenue in the prior corresponding period of $4.4 million (£2.5 million). This contributed $1.9 million to Pendal Group’s cash net profit after tax (and statutory net profit after tax) in FY 2019.

Also reporting growth in FUMs recently was Platinum Asset Management Ltd (ASX: PTM).

During the month of December the Asia-focused fund manager saw its FUM increase by $177.7 million to $25.1 billion.

As with Pendal, this was achieved despite it experiencing net outflows over the period. It reported net outflows of approximately $104 million, which was offset by positive market movements during the month.

The post Pendal Group share price lower following FUM update appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020