Cash is going out, but investments are going up…
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The Pendal Group Ltd (ASX: PDL) share price is moving onwards and upwards today. This movement follows the global investment manager’s funds under management (FUM) update for the quarter ending June 2021.
At the time of writing, the Pendal share price is 2.49% higher to $8.22.
Let’s have a closer inspection of the company’s FUM for the past quarter.
What’s moving the Pendal share price?
Prior to the market open, Pendal Group released its funds under management update for the quarter ending June 2021.
According to the release, the fund manager’s FUM increased $5 billion from the previous quarter. This increase took total FUM at the end of June to $106.7 billion. However, the growth in managed funds was largely attributed to investment performance and positive currency conversion.
If not for these factors, the total FUM would have decreased from $101.7 billion at the end of March to $101 billion. The fund manager experienced net outflows largely in its cash balance, amounting to $1.9 billion. It seems the cash outflows have not worried investors, with the Pendal share price rising today.
On the other hand, Pendal Australia experienced net inflows of $0.4 billion when excluding cash. Additionally, the company’s US operations notched up $0.8 billion of net inflows when excluding cash.
CEO commentary and performance fees
Commenting on the quarterly result, Pendal Group Chief Executive Officer, Nick Good said:
In overview, we continue to see the strength of the US region and its potential for future growth from the perspective of flows and FUM, and margins. As well, the benefits of our scale and diversified business continue to be evident with the significant uplift in total FUM
Another catalyst for the Pendal share price may have been its realised performance fees. Pendal Australia realised performance fees of $16.4 million, an increase of 29% on the prior financial year.
The fund manager currently trades on a price-to-earnings (P/E) ratio of 15.82.
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Motley Fool contributor Mitchell Lawler 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.