PDL
Pendal recently made some sizeable acquisitions, and, for a fund manager, being able to retain the newly acquired funds is always a challenge.
More broadly, the fund managers (from Platinum, to Magellan, to Pedal) are seeing pressure on net outflows, as a result of increasing allocations to lower cost, easily implementable passive vehicles.
From the Pendal AGM, it looks like this is set to continue, with a couple of chunky redemptions identified below.
Pendal attempt to point out that this won’t materially impact FY22 earnings, but it clearly does not help them.
All of the listed managers have suffered some fairly dramatic pullbacks, PDL is no exception. We are constructive on the fund managers at these prices , preferring PTM, which is a Value + Emerging market play, and has a DAA overlay that provides portfolio protection in the event of a market sell-off, which we find attractive. However PDL is also attractive and offers quite a different set of factor premia, geographic drivers, and macro factor premia.
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