Pendal suffers $6.8bn outflows

Pendal Group has reported outflows of $6.8 billion for the December quarter with total funds under management falling $3.5 billion to $135.7 billion.

“It has undoubtedly been a disappointing quarter in terms of our flows,” said Pendal Group chief executive Nick Good.

“However, we are responding with a clear set of actions and have delivered strong performance fees in line with those recorded in the prior year.”

Performance fees received by J O Hambro Capital Management totalled $43.4 million in 2021, up from $41.2 million in 2020. The firm said this would contribute $22.4 million to its underlying profit after tax for the financial year ended 30 September.

Pendal saw outflows of $0.8 billion in the Australian institutional channel and $0.1 billion in the wholesale channel, while Westpac outflows were in line with the firm’s expectations at $0.2 billion.

Two redemptions by UK institutional clients announced by Pendal at its AGM last month gave rise to outflows of $5.1 billion in segregated mandates.

Total US inflows were $0.2 billion including inflows of $0.8 billion for US pooled funds and outflows of $0.5 billion for Thompson, Siegel and Walmsley (TSW).

The firm previously declared a $32.5 billion FUM increase for the September quarter following the acquisition of TSW.

“Pendal continues to invest in distribution in key target markets, is working closely with fund managers to strengthen investment performance, and has launched new impact and thematic products that are quickly gaining traction and meeting the changing needs of clients,” said Mr Good.

“We remain committed to bringing investment excellence to our clients over the full market cycle.”

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.