Pendal Group has reported a 4% growth quarter-on quarter to $89.4 billion at the end of June in its funds under management (FUM), despite net outflows of $2.5 billion which resulted from outflows from European strategies ($1 billion), Aussie equities ($0.7 billion) and UK strategies ($0.5 billion).
In Australia, the group saw net outflows of $1 billion in the quarter, with the majority ($0.9 billion) coming from institutional clients who began to reshape their Australian equity portfolio, the company said.
At the same time, the June quarter saw a significant rebound in global equity markets from their March lows which drove an increase in FUM of $11.1 billion but this was offset by a $5.2 billion currency impact as the Australian dollar appreciated against major currencies.
“During the period we saw a strong turnaround in flows into US pooled funds with net inflows of $0.2 billion compared to outflows of $0.3 billion in the prior period. We also saw improved flow in the Australian wholesale channel,” Pendal’s chief executive officer, Emilio Gonzalez, said.
“In Australian equities, there were outflows due to an institutional client reshaping its portfolio. Overall, net outflows during the period were $2.5 billion.”
According to Gonzalez, a standout achievement was the strong performance in Pendal’s Australian funds which generated annual performance fees of $13.6 million for 12 months to 30 June 2020, an increase of $12 million on 2019.