Pendal lifts profit 7.5pc as US fundie boosts earnings

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The former Westpac funds management arm reported net profit of $96.7 million in the first half, thanks in part to its 2021 takeover of Thompson, Siegel & Walmsley.

“[We] acquired TSW in 2021, materially enhancing and diversifying our US product range,” Mr Good said in the statement. “We have seen TSW’s value strategies outperform in the pas quarter, and despite cautious US investor sentiment, TSW’s international strategies have seen inflows.”

The performance of the TSW subsidiary and Pendal’s environmental, social and governance research and funds divisions were understood to be among the key attractions for rival Perpetual, which“While I am pleased with the progress made over the past six months, there is still more to do,” Mr Good said. “Our priorities are to fully leverage our global distribution footprint [and] deliver long-term investment performance across a diversified, forward-looking product set.

“Despite peers struggling to manage the current inflationary environment, cost control remains a focus for Pendal, with the company flagging 1-2 per cent [financial year] operating margin expansion on the prior corresponding period,” wrote analyst Elizabeth Miliatis.Pendal’s earnings per share for the half beat the consensus expectations of market analysts by 22 per cent, and Jarden’s own by 34 per cent, the broker note said.

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