Equity Analysis /

AU : Pendal Group - Value gets another look in

    Scott Murdoch
    Scott Murdoch

    Analyst - Contractors & Developers

    15 April 2021
    Published by

    PDL reported 2Q21 FUM of A$101.7bn, up 4.4% for the quarter (+18.3% on pcp). Group net inflows were A$0.9bn (JOHCM A$0.2bn). Whilst net inflows were modest, the early sign that ongoing outflows may have been stemmed is positive. Investment performance has turned in a number of UK/EU value orientated funds, providing an improved outlook for flows and performance fees med-term. We maintain an Add recommendation. Whilst market direction is currently the primary driver of earnings, PDL’s valuation remains relatively undemanding (~15x FY21 PE); the group has a net cash position; and we see the move to appoint a US-based Group CEO as potentially accelerating the growth strategy.