This ASX share is expanding its scale and client offering in the United States.
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The Pendal Group Ltd (ASX: PDL) share price is in negative territory today despite a positive update in relation to its recent acquisition.
At the time of writing, the fund manager’s shares are down 0.50% to $8.
Let’s take a closer look at what the company announced to the ASX this morning.
What did Pendal announce?
According to the release, Pendal advised it has completed the strategic acquisition of Thompson, Siegel & Walmsley LLC (TSW).
Founded in 1969, TSW is an investment management and advisory firm, headquartered in the United States. The group operates primarily in the long-only equity and fixed income asset classes for its diverse client base.
Following the early acquisition achieved, Pendal revealed this is a result of the cultural and commercial alignment of both companies.
Pendal expects that its United States Funds Under Management (FUM) will now more than double to $62.5 billion. This brings the total group FUM to $139.3 billion, a 31% increase as a result of the takeover.
Earnings per share (EPS) is forecasted to be double digit accretive within the first full-year of running operations.
TSW CEO, John Reifsnider has been appointed to lead Pendal’s consolidated business as well as joining its Global Executive Committee.
Pendal group CEO, Nick Good commented:
We are thrilled to welcome the TSW team and its clients to Pendal Group. Client support has been incredibly strong, with 96% TSW client consent received in just 11 weeks. It is testament to the compatibility and drive of the two organisations and their teams that we have completed the acquisition well ahead of original expectations.
This acquisition significantly broadens the range of product solutions we can offer clients via an expanded distribution network, and we are focused on providing our combined investment strategies to our enlarged client base as soon as possible.
As complementary businesses, with almost no overlap of investment strategies, together, we will be better placed to take advantage of the growth opportunities we see in the US market.
Pendal share price summary
The last 12 months have been positive for Pendal shareholders, with the company’s shares rising by 30%. In 2021 alone, Pendal shares are up by more than 22%.
Pendal presides a market capitalisation of roughly $3 billion, with approximately 379 million shares on its books.
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Motley Fool contributor Aaron Teboneras 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.