Pendal (ASX:PDL) posts $5 billion increase in FUM

The Pendal Group Ltd (ASX: PDL) share price slumped 3.0% lower on Friday despite announcing an increase in funds under management.

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The Pendal Group Ltd (ASX: PDL) share price slipped 3% lower on Friday despite a funds under management (FUM) update from the Aussie investment group.

What did Pendal announce?

Last week, Pendal updated the market with its quarterly FUM update for the period ended 31 December 2020.

The company posted a $5.0 billion increase in FUM — up 5.4% on the prior quarter for a total period-end FUM of $97.4 billion.

The Aussie investment group cited strong markets and investment outperformance as triggering the uplift. However, negative currency impact of $2.7 billion and net outflows of $1.6 billion tempered the absolute $9.3 billion FUM increase.

Despite the update, the Pendal share price remained under pressure and fell 3.0% on Friday. It's also worth noting the broader market closed broadly flat on Friday after climbing in early trade. The S&P/ASX 200 Index (ASX: XJO) edged marginally higher to close at 6,715.4 points on Friday afternoon.

Pendal Group CEO Emilio Gonzalez said the FUM increase "continues to demonstrate the benefits" of the group's diversified business model.

The company also provided an update on its full-year J O Hambro Capital Management (JOHCM) performance fees. JOHCM is a boutique investment management business with offices in London, Singapore, New York and Boston specialising in the active equities management. According to Pendal's website, JOHCM managed assets of $53.1 billion as at 31 December 2019.

Performance fees totalled ~$41.2 million up from ~$0.6 million in the prior corresponding period. Six investment strategies, primarily the Global and International Select stratgies, generated the fees which will contribute $21.4 million to Pendal's statutory and underlying profit after tax.

JOHCM saw strong flow momentum into US pooled funds with the International Select strategy seeing consistent monthly inflows.

What about other ASX 200 Financials shares?

The Pendal share price slipped lower on Friday despite the FUM increase announcement. The 3.0% share price fall is in contrast to many of Pendal's ASX 200 Financials peers.

The Westpac Banking Corp (ASX: WBC) share price climbed 1.5% higher to $21.35 while Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares edged 0.2% higher to $24.66.

The Commonwealth Bank of Australia Ltd (ASX: CBA) share price fell 1.1% lower on Friday while the broad market index closed broadly flat.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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