Pendal Group net outflows have increased from $2.3 billion in the 2021 September quarter to $6.8 billion in Q4, primarily driven by redemptions by UK institutional clients.
In its Q4 results announced to the Australian Securities Exchange, which showed a fall in total funds under management from $139.2 billion to $135.7 billion, Pendal Group chief executive, Nick Good, said it had been a “disappointing quarter” in terms of flows.
“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,” said Good.
“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.”
There were two notable redemptions by UK institutional clients which gave rise to outflows of $5.1 billion in segregated mandates during the quarter, primarily in the Global Opportunities Strategy.
In Australia, there were $0.8 billion in institutional outflows that came primarily from Australian equities and fixed income while $0.2 billion was lost as a result of Westpac’s holding exit.
Meanwhile, JOHCM performance fees of approximately $43.3 million had been realised for the 12-month performance period to 31 December 2021, compared to $41.2 million in the prior year.
The performance fees would contribute $22.4 million to the group’s underlying profit after tax and statutory net profit after tax for the current financial year ending 30 September 2022.