SYDNEY — Pendal Group Ltd. shares declined in Friday trade after the Australian asset manager said its funds under management slid in the June quarter.
Pendal shares fell 7.8% to A$3.76, leading a broader selloff across listed Australian fund managers. Platinum Asset Management Ltd. and Magellan Financial Group Ltd. were down 5.3% and 4.3%, respectively.
Pendal shares are down around 50% over the past year. The stock is the poorest performer on the ASX 200 in Friday’s session.
The company said Friday that its total funds under management dropped to 111.0 billion Australian dollars (US$74.89 billion) for the June quarter, from A$124.9 billion for the March quarter. The asset manager’s total outflows were A$4.2 billion over the quarter, with investment performance, market movements and distributions making up the remainder of the losses.
This comes as other asset managers like Platinum and Magellan also report ongoing outflows amid challenging market conditions.
Nick Good, Pendal’s chief executive, said there had been ongoing challenges over the June quarter.
“Global equity market volatility increased dramatically with rising inflation worries, ongoing concerns over geopolitical tensions, and fears of economic recession around the world due to aggressive tightening measures by major central banks,” he said.
“This has resulted in client caution, which has driven fund redemptions.”
Still, Mr. Good said flow trends had improved in June, with the asset manager expecting an additional A$1.3 billion investment from British firm St. James’s Place in the September quarter.
Analysts had said earlier in July that Pendal would likely see outflows persist or even accelerate, with stabilization needed for a rerating of the stock. The analysts added that there may be some upside risk from a revisited Perpetual bid, after the Pendal board in April rejected a merger proposal.