Here's why the Pendal (ASX:PDL) share price is tumbling 6% lower today

Pendal shares are falling on Friday…

| More on:
Humble fund manager of ASX shares with head in hands in front of lap top computer

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key Points

  • Pendal had a disappointing quarter and reported net fund outflows of $6.8 billion
  • The fund manager's FUM fell 2.5% to $135.7 billion during the December quarter
  • JOHCM performance fees are expected to be marginally higher year on year

The Pendal Group Ltd (ASX: PDL) share price is on course to end the week in the red.

In morning trade, the fund manager's shares are down 6% to $5.58.

This means the Pendal share price is trading withing sight of its 52-week low of $5.40.

Why is the Pendal share price sinking?

The weakness in the Pendal share price on Friday has been the release of its latest funds under management (FUM) update.

According to the release, at the end of the December quarter, Pendal's FUM stood at $135.7 billion. This was down 2.5% since the end of September despite receiving a $3.8 billion boost from favourable market movements.

During the three months, Pendal reported a $6.8 billion net fund outflow. This was driven by weakness across its Australian funds and outflows of $5.1 billion from its segregated mandates in Europe.

Pendal also provided an update on its JOHCM performance fees for the 12 months ended 31 December. It revealed that performance fees totalling $43.4 million were realised for the period, up marginally from $41.2 million a year earlier.

"A disappointing quarter"

Pendal's Group CEO, Nick Good, wasn't pleased with the company's fund flows during the quarter.

He said: "It has undoubtably been a disappointing quarter in terms of our 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."

"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. We remain committed to bringing investment excellence to our clients over the full market cycle," he added.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

More on Financial Shares

Man smiling at a laptop because of a rising share price.
Financial Shares

AMP share price lifts 8% in October amid improved cashflows

Investors were impressed with AMP's third-quarter report.

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Share Market News

This ASX All Ords stock is down 37%, and one insider just bought up over $500,000 worth

This company director just raised his stake by 1,735%.

Read more »

A young boy reaches up to touch the raindrops on his umbrella, as the sun comes out in the sky behind him.
Financial Shares

IAG share price lifts amid AGM and FY25 guidance

The insurance giant held its annual general meeting today.

Read more »

Delighted adult man, working on a company slogan, on his laptop.
Financial Shares

Top Australian financial stocks to buy now

These companies are well-positioned to grow, brokers say.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Financial Shares

$25 billion ASX 200 stock falls on ASIC probe

This blue chip is facing civil penalties, declarations and adverse publicity orders.

Read more »

Man pointing at a blue rising share price graph.
Financial Shares

Up 119% in a year, here's why this ASX financial stock is rocketing again on Tuesday

Investors are optimistic about the outlook for this soaring ASX financial stock.

Read more »

A geeky business man scratches his head as he looks at many stacks of books piled up on the floor.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX financial shares led the 11 market sectors last week with a 4.07% gain.

Read more »

Close-up photo of man's hands holding silver platter with coins and young plant growing out of pile of money
Financial Shares

This ASX All Ords share just reported a 24% leap in a key metric

The ASX All Ords stock completed a key transaction in September.

Read more »