PDL

It does look, based on the below, as though PPT are back to have another tilt at Pendal.

We owned PDL in our concentrated/absolute return portfolio, sold it after the first PPT tilt, and recently reintroduced it back to the concentrated portfolio, seemingly in time for round 2.

That’s great. We have had fund managers in our flagship core portfolio before, to fairly ill effect, and we’d note the risks around the managers are presently very high (with MFG and PTM, for example, struggling with flows, relative performance, and market comparable fees).

That level of risk/return, or risk/reward is fine in the absolute return oriented portfolio, but thus far, not for the core. The other big uncertainty is how markets in absolute terms are set to travel, given the Fed hike later next week, the RBA the week after, and the Nordstream natural gas pipeline issue (whether it “comes back online” from scheduled maintenance next week).

Anyway, we’ve no particular insight how this most recent round will go, save that PDL mgmt, after an incredibly bruising quarter in terms of redemptions, lost mandates, FUM flow, and market movement, are likely to be much more amenable to anything, now, than but a few months ago.

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