Pendal Group Limited Level 14, The Chifley Tower 2 Chifley Square

Sydney NSW 2000 Australia

ABN 28 126 385 822

14 January 2019

ASX Announcement

  • • Pendal Group Limited (PDL) – Funds under Management (FUM) for the quarter ended 31 December 2018

  • • JOHCM performance fees for the year ended 31 December 2018

Funds under Management

(AUD $bn)

Institutional

17.8

0.3

(0.8)

17.3

Wholesale

7.9

0.1

(0.5)

7.5

Westpac/BTFG

– Legacy

7.5

(0.1)

(0.6)

6.8

– Other

13.5

(0.1)

(0.6)

12.8

Total Pendal Australia FUM

46.7

0.2

(2.5)

44.4

Segregated mandates

16.1

0.1

(1.5)

14.7

OEICs

23.5

(0.3)

(2.7)

(0.2)

20.3

US pooled

15.3

(0.2)

(1.9)

0.2

13.4

Total JOHCM FUM

54.9

(0.4)

(6.1)

48.4

TOTAL PENDAL GROUP FUM

101.6

(0.2)

(8.6)

92.8

*

30 Sep 18

31 Dec 18

Closing FUM* Net Flows Other** FX Impact Closing FUM

As at 30 September 2018, Westpac mandates totalling $6.9b previously classified in Institutional FUM were reclassified to Westpac – Other. Refer to the 2018 Full Year results presentation.

** Other includes investment performance, market movement and distributions.

Notes:

  • 1. During the quarter the most significant impact on Pendal Group‘s FUM was adverse markets which saw the MSCI All Countries World Index in local currency terms decline 12.3% and the S&P/ASX All Ordinaries Index fall 9.7% over the period.

  • 2. Pendal Australia saw net inflows of +$0.2bn during the quarter led by Australian equities (+$0.4bn) in the institutional channel, and positive net inflows into Australian equities, fixed interest and multi-asset funds in the wholesale channel (+$0.1bn).

    JOHCM experienced net outflows of -$0.4bn during the quarter with redemptions in European and Asian OEIC funds (-$0.7bn) being offset by inflows into UK and global OEIC funds (+$0.4bn). The US pooled funds saw net outflows of -$0.2bn driven by redemptions in the Asia ex-Japan fund.

  • 3. The effect of the net flows during the December quarter on Pendal Group revenue is a decrease to annualised fee income of $3.2m.

  • 4. The Australian Dollar strengthened +0.8% relative to the British Pound and weakened -2.3% against the US Dollar over the quarter which had a flat impact on FUM over the period. Movements in spot exchange rates were:

30 September 2018

31 December 2018

GBP / AUD USD / AUD

1.8119 1.7976

1.3847 1.4168

2

JOHCM Performance Fees

J O Hambro Capital Management (JOHCM) performance fees for the year ended 31 December 2018 total approximately $4.4m (£2.5m) in fee revenue. The performance fees will contribute approximately $1.9m to Pendal Group‘s cash net profit after tax (and statutory net profit after tax) for the current financial year ending 30 September 2019.

The JOHCM performance fees compare to the $47.5m (£27.0m) received for the prior corresponding period which contributed $17.8m to Pendal Group‘s cash net profit after tax (and statutory net profit after tax) for the financial year ended 30 September 2018.

Pendal Australia‘s annual performance fees are generally for a 30 June performance period and will be brought to account in the second half of the financial year.

For further information in relation to this announcement, please :

Cameron Williamson

Group Chief Financial Officer Telephone: +61 2 9220 2126

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Disclaimer

Pendal Group Limited published this content on 14 January 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 13 January 2019 22:13:02 UTC