Pacific Current : 1H FY2021 Results and Investor Presentation

Tacoma // Denver // Sydney // Melbourne

26 February 2021

Company Announcement for Immediate Release (ASX Code: PAC)

PACIFIC CURRENT GROUP HALF YEAR RESULTS

Six months ended 31 December 2020

SYDNEY (26 February 2021) - Pacific Current Group (ASX: PAC, "Pacific Current" or "Company") is pleased to report the Company's interim results for the six months ended 31 December 2020.

HIGHLIGHTS

• • Management fee revenues grew 10% and operating expenses declined 24%

• • Widespread growth, led by GQG, resulted in 23.9% FUM increase

• • Underlying NPAT attributable to members for the half year of A$11.6m, down 13.4% compared to A$13.4m in the previous corresponding period ("pcp")

• • Lower performance fees and appreciation of AUD Vs. USD impacted on the result

• • Fully franked interim dividend of A$0.10 per share

• • New investment announced in Astarte Capital Partners ("Astarte") and Seizert Capital Partners ("Seizert") was sold

OPERATIONAL RESULTS

Underlying NPAT attributable to members for the half year was A$11.6m, down 13.4% from A$13.4m in the pcp. The profitability decline was driven by a decrease in performance fees from Carlisle Management Company ("Carlisle") and Victory Park Capital ("VPC"), appreciation of the AUD versus the USD, and to a lesser extent, lower commission revenues. Partially offsetting this was a 10% growth in management fee revenues and a 24% decrease in underlying corporate expenses compared to the pcp. The appreciation of the AUD against the USD also significantly impacted the result. Had the pcp exchange rate prevailed, underlying NPBT would have been A$0.9m higher.

PAC posted a statutory profit after tax of A$11.6m compared to a loss of A$8.9m in the pcp. The reported loss in the pcp was due to impairment expenses, primarily at Seizert and VPC. The current period results include gains on the revaluation of fair value assets including Carlisle and Proterra Investment Partners ("Proterra").

DIVIDEND

The Board has declared a A$0.10 fully-franked interim dividend payable on 15 April 2021. This dividend represents a 44% dividend payout ratio. The firm's guidance for the full year dividend payout range remains 60% - 80%, and PAC expects its FY21 payout ratio to be no less than the prior year.

PORTFOLIO COMPANY HIGHLIGHTS

Total funds under management (FUM) at 31 December 2020 were A$112.8b, a 23.9% increase since 30 June, adjusting for the November sale of Seizert. The non-AUD denominated FUM saw a 40.0% increase from June to December.

Pacific Current Group Limited (ABN 39 006 708 792)

Level 29, 259 George Street, Sydney NSW 2000 Australia

www.paccurrent.com

Tel: [phone] // Fax: [phone]

Total FUM represents the aggregate FUM of all Pacific Current boutiques as if each boutique were 100% owned by PAC and excludes boutiques sold during the year. Note that the relationship between FUM and the economic benefits received by PAC can vary dramatically based on each boutique's fee levels, PAC's ownership stakes, and the specific economic features of each relationship. Accordingly, management cautions against simple extrapolation based on FUM updates or trends.

Growth was widespread across PAC's portfolio from 30 June 2020 to 31 December 2020, though the magnitude was partially masked by currency movements. For instance, GQG's FUM grew 50% in local currency, while in AUD terms it grew 34% (from A$64.7b to A$86.9b). Investment performance was quite strong across the portfolio despite the economic challenges brought on by the pandemic. This was most apparent among the active equity managers, which produced notable outperformance across most products.

PORTFOLIO MANAGEMENT

In December 2020, the Company announced an agreement to purchase a stake in Astarte, a London-based investment manager focused on private markets real asset strategies. PAC also sold its interest in Seizert for US$5m.

OUTLOOK

Pacific Current's Chairman, Mr. Tony Robinson said, "PAC's portfolio has weathered a difficult year in fine shape. While there was a decline in performance fees, I am encouraged by the growth in management fee revenues, particularly in a period where it has been difficult for boutiques to market to new clients."

Pacific Current Managing Director, CEO and CIO, Mr. Paul Greenwood added, "As you look at these results you will see that more of PAC's earnings are coming from management fees, which are more repeatable than performance fees or commission revenues. This means that the organic profitability of the business continues to grow nicely, and we expect this trend to continue." Greenwood added, "The reduction in performance fees was partially reflective of the market environment, but also a function of timing, where some performance fees are expected to be recognized in the second half as opposed to a year ago when they fell in to the first half."

Please refer to the attached presentation for the details.

CONFERENCE CALL

Investors and analysts are invited to participate in a conference call on Monday, 1 March 2021 at 10:00am AEDT. The call will be hosted by Pacific Current Group's MD & CEO and CIO, Paul Greenwood and CFO, Ashley

Killick.

The dial-in details are as follows:

Participant Passcode: 2650709

Location
Australia (toll free)	1800 573 793
Australia, Sydney	[phone]
New Zealand (toll free)	0800 423 970
New Zealand, Auckland	[phone]
Singapore (toll free)	800 186 5107
Singapore	[phone]
United Kingdom (toll free)	0800 358 6377
United Kingdom	[phone]
USA/Canada (toll free)	866 548 4713
USA, Los Angeles	[phone]

Phone Number

Please join the event conference 5-10 minutes prior to the start time using the dial-in details and participant passcode listed above.

AUTHORISED FOR LODGEMENT BY:

The Pacific Current Group Limited Board

- ENDS -

CONTACT

For Investor Enquiries:

Paul Greenwood, Managing Director, CEO and CIO [e-mail] - (+1) [phone]

ABOUT PACIFIC CURRENT GROUP

//www.paccurrent.com

Pacific Current Group is a multi-boutique asset management firm dedicated to providing exceptional value to shareholders, investors and partners. We apply our strategic resources, including capital, institutional distribution capabilities and operational expertise to help our partners excel. Upon closing the investment in

Astarte Capital Management LLP, Pacific Current Group will have investments in 15 boutique asset managers globally.

HALF YEAR 2021 RESULTS

PRESENTERS:

Paul Greenwood, Managing Director, CEO and CIO

Ashley Killick, CFO

26 February 2021