JOHCM manager exit prompts outflows at Perpetual

JOHCM Perpetual fund management Rob Adams

26 April 2024
| By Laura Dew |
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Perpetual has seen a 6 per cent uplift in assets under management (AUM), but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.

In its quarterly results for the three months to 31 March, the firm said AUM rose from $213.9 billion at end of December to $227 billion. This was driven by market movements of $11.9 billion and currency movements of $6.8 billion. 

These helped the firm to successfully offset net outflows of $5.2 billion, with the largest seen at boutique J O Hambro Capital Management (JOHCM) which lost $3.5 billion. 

 

Perpetual said this was the result of the portfolio manager of its UK Dynamic strategy, Alex Savvides, departing the business which led to outflows of $2.2 billion in that strategy. Savvides had worked at JOHCM since 2003 and launched the UK Dynamic Fund in 2008, with his departure causing many UK asset allocators to dispose of or reduce their stakes. In his place, JOHCM appointed a trio of Vishal Bhatia, Tom Matthews and Mark Costar to manage the fund.

There were also outflows from JOHCM’s International Select and Global Select strategies of $1.3 billion and $0.3 billion respectively during the quarter. 

 

Pendal Asset Management was the only one of the six boutiques to report inflows at $0.9 billion to see AUM rise to $44.6 billion. Total net inflows were underpinned by net inflows into cash of $1.5 billion.

Breaking it down by distribution channel, intermediary and retail flows accounted for $27.5 billion followed by $23.7 billion in institutional and $2.8 billion in Westpac. 

Chief executive, Rob Adams, said: “The continued overall growth in AUM, despite net outflows, highlights the benefits of our global, diversified, multi-boutique model and exposure to a range of equity markets, regions and currencies, as well as client channels.

“We continue to progress the integration of Pendal Group and we are ahead of plan to deliver our targeted synergies of $80 million in run-rate synergies by January 2025.”

He flagged the firm has won $3.5 billion in client new monies and additional flows from existing clients are expected in the next six months. 

In wealth management, total funds under advice were $20 billion, up 5 per cent from the previous quarter. Net flows were flat but market movements contributed $0.9 billion. 

The firm said it has improved its wealth management product offering and launched a new ESG reporting offering which is marketed towards its high-net-worth and philanthropic segments. 

Regarding its strategic review, as announced in December, the firm expects to announce the results of this by 8 May.

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