Financial Performance

The 2021 Financial Year saw a significant increase in the Group’s funds under management, revenue and profit primarily due to extraordinary growth in global equity markets and the acquisition of Thompson, Siegel and Walmsley (TSW), a US value-oriented investment manager during the year. 

Underlying net profit after tax (UPAT) was $165.3 million, an increase of 25 per cent on the previous year, while statutory net profit after tax (NPAT) lifted 42 per cent to $164.7 million.

Five-year profile FY17 FY18 FY19 FY20 FY21
Average FUM ($b) $90.4b $99.5b $98.8b $94.8b $107.9b
Closing FUM $95.8b $101.6b $100.4b $92.4b $139.2b
Base management fee margin (bps) 50bps 51bps 49bps 48bps 48bps
Base management fees ($m) $447.2m $501.1m $482.6m $458.1m $522.8m
Performance fees $37.9m $54.5m $5.9m $13.4m $57.5m
Fee revenue $491.0m $558.5m $491.2m $474.8m $581.9m
Operating expenses $296.7m $315.7m $304.9m $306.9m $377.8m
Operating profit ($m) $194.2m $242.7m $186.3m $167.9m $204.1m
Operating margin +40% +43% +38% +35% +35%
UPAT ($m) $153.8m $197.8m $148.5m $132.6m $165.3m
Statutory NPAT $147.5m $202.0m $154.5m $116.4m $164.7m
Underlying EPS (cps) 49.1cps 62.5cps 46.6cps 41.1cps 48.2cps
Dividends 45.0cps 52.0cps 45.0cps 37.0cps 41.0cps

Funds under management (FUM)

FUM as at 30 September 2021 was $139.2 billion, a 51 per cent increase over the year. The growth in FUM was largely the result of the acquisition of TSW and a $16.0 billion contribution from higher markets and investment performance. Favourable foreign currency movements of $2.1 billion also supported FUM growth. Net outflows were $3.7 billion for the year. 

In the institutional and sub-advised channels, there was $2.9 billion in outflows across the Group as clients took the opportunity to rebalance portfolios and take profits following the significant market appreciation through the year. This was most pertinent in the International Select strategy following a period of stellar outperformance.

Flows in the higher margin wholesale channel were mixed with strong flows in the US Pooled funds (+$1.5 billion) and a record year in the Australian funds (+$0.8 billion) being offset by redemptions in the OEICs (-$1.6 billion) as UK equities remained out of favour with investors. The Regnan Global Equity Impact Solutions strategy attracted good early support from UK and European wholesale investors following its launch in the December 2020 quarter.

The Westpac book saw outflows of $1.4 billion with the majority of this in lower margin cash strategies and was in line with expectations.

During the year the Japan OEIC and International Small-cap mutual fund were wound up and returned to clients ($0.2 billion) upon closure.

1 Includes Australia and New Zealand

Funds under management (AUD $billion) Sep-20 Flows1 Other2 FX Sep-21
Australia (excl. Cash)
Institutional 14.5 (1.4) 2.6 0.0 15.7
Wholesale 6.6 0.8 1.0 0.0 8.4
Westpac 9.9 0.0 1.9 0.0 11.8
Total Australia (excl. Cash) 31.0 (0.6) 5.5 0.0 35.9
Europe, UK & Asia (EUKA)
Segregated Mandates 10.8 (0.2) 2.6 0.4 13.6
OEICs 12.4 (1.6) 3.9 0.5 15.2
Total EUKA 23.2 (1.8) 6.5 0.9 28.8
JOHCM Segregated Mandates 7.3 (0.7) 0.8 0.0 7.4
JOHCM US Pooled Funds 18.8 1.5 3.2 (0.1) 23.4
TSW – sub advisory 0.0 (0.5) 18.1 0.7 18.3
TSW – other 0.0 (0.1) 14.3 0.6 14.8
Total US 26.1 0.2 36.4 1.2 63.9
Total Pendal Group (excl. Cash) 80.3 (2.2) 48.4 2.1 128.6
Cash 12.1 (1.5) 0.0 0.0 10.6
Total Pendal Group 92.4 (3.7) 48.4 2.1 139.2

1 TSW flows since completion on 23 July 2021
2 Other includes investment performance, market movement, distributions and FUM acquired upon completion of TSW

Investment performance

In the 2021 Financial Year, global equity markets experienced the strongest 12‑month period of growth in more than 30 years. Market returns were higher across the board with the MSCI ACWI Index in local currency terms and the S&P/ASX All Ordinaries Index up 27 per cent while the S&P 500 rose 28 per cent. The FTSE 100 was 21 per cent higher. Markets in Asia and Europe also rebounded strongly during the year.

There was strong investment performance across a broad range of strategies during the year with notable improvement in the Group’s UK equity strategies. The UK Equity Income fund outperformed its benchmark by 31.4 per cent while the UK Dynamic fund also had a strong year returning 22.1 per cent above its benchmark. Similarly, the UK Growth Fund had a stellar year achieving 27.7 per cent outperformance for the 12 months to 30 September 2021. 

The consistent performance in Australian Equity strategies continued with 87 per cent of FUM outperforming their respective benchmarks. Impressively, 100 per cent of Australian equities FUM has outperformed relevant benchmarks over the past five years and since inception. 


Revenue grew 23 per cent to $581.9 million (2020: $474.8 million) with higher average FUM levels driving a 14 per cent uplift in base management fees to $522.8 million. Performance fees increased significantly to $57.5 million (2020: $13.4 million) with notable contributions from the JOHCM International Select and Global Select strategies as well as the Pendal MicroCap and Focus Australian equity strategies. Fee margins remained steady at 48 basis points. 


Total operating expenses were $377.8 million, a 23 per cent increase on the 2020 Financial Year. The increase was primarily driven by an uplift in variable employee expenses as a result of higher performance fees, base management fees and profit growth. As outlined in 2020, the Group has also embarked on an investment program centred around global distribution, product diversification and enhancing the global operating platform. New employees have been recruited to progress these initiatives.

Excluding the contribution of TSW, fixed costs were 9.6 per cent higher this year and the compensation ratio was 47 per cent, both in line with guidance provided in FY20. During the year a distribution strategy was established for Europe and senior sales leadership was refreshed in Europe and Australia. Our ESG/RI capabilities were expanded with the appointment in the UK of a thematic investment team delivering a sustainable waste and water strategy and the Regnan Global Equities Impact Solutions strategy was rolled out across all regions attracting early client support. Additionally, the Group’s flagship Global Select fund was brought to the Australian market. 

During the year a number of one-off global projects were carried out enhancing the Group’s operating platform which totalled approximately $5 million. These are expected to deliver a recurring uplift to operating profit before tax of approximately $5 million effective from the 2022 financial year. 

In the coming financial year, strategic investments for growth will continue. In the US, the TSW and JOHCM’s US sales teams have commenced offering our clients in the region an expanded range of investment strategies and, in continental Europe, a branch office will be opened, and FTE added, in order to capture market share in the region. 

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