Pendal boosts FUM, seals Perpetual deal

Pendal Group has released its results for the quarter ending 31 December 2022, reporting a 2.7 per cent increase (excluding cash) in the value of its funds under management (FUM), from $95 billion as at 30 September 2022 to $97.6 billion.

The company’s performance across Europe, the United Kingdom, and Asia (EUKA) contributed to half ($1.3 billion) of the company’s total FUM growth ($2.6 billion), despite making up just 22.4 per cent of the group’s combined FUM portfolio.

Pendal Group also recorded a multibillion-dollar FUM boost in Australia — up 4.2 per cent to $29.7 billion — which contributed to just over 30 per cent of the group’s total FUM.

In contrast, the firm’s US portfolio, which contributes approximately 47 per cent of total FUM, recorded modest growth of just 0.2 per cent ($100 million), closing the December quarter at $46 billion.

The release of Pendal’s results for the December quarter came just hours after the Supreme Court of NSW approved Perpetual Limited’s proposed acquisition of the company via a scheme of arrangement. 

The deal has since become legally binding, with Pendal lodging an office copy of the orders with the Australian Securities and Investments Commission (ASIC). 

The scheme is slated for formal implementation on 23 January 2023, providing Pendal shareholders with a consideration mix comprising a total of:

• $1.65 cash per Pendal share, less the permitted dividend amount of 3.5 cents per share — paid to Pendal shareholders on 15 December 2022
• One Perpetual share for every seven Pendal shares

Supreme Court approval was granted just weeks after the requisite majority of Pendal shareholders voted in favour of Perpetual’s takeover offer.

Approximately 99.28 per cent of shareholders reportedly greenlit the proposal — well beyond the 75 per cent required to sanction the deal.