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ASX ANNOUNCEMENT
30 October 2020
Funds under management as at 30 September 2020
Pacific Current Group Limited (ASX:PAC), a global multi-boutique asset management firm, is pleased to announce that total Funds under Management (FUM) controlled by boutique asset managers within Pacific Current Group increased 14.0% to AUD 106.4 billion (USD 78.3 billion) during the quarter ended 30 September 2020.
Highlights from the quarter include the following:
- Generally, a quiet quarter in terms of flows, with exception of notable inflows at GQG and Roc and outflows at Blackcrane and Carlisle;
- Market appreciation and increased valuations on private capital portfolios contributed to higher FUM;
- In native currencies, USD oriented fund managers saw FUM increase by 19.3%. When converting to AUD, the increase was partly offset by the significant appreciation of the AUD against the USD.
FUM flows and balances as at 30 June 2020 and 30 September 2020, by boutique tier and category, are shown in the Appendix attached.
Pacific Current CEO, Paul Greenwood, stated, "COVID-19 has certainly been disruptive to institutional fundraising and investor demand. Thankfully the environment appears to be steadily improving, though we are still a long way from pre-pandemic levels of activity." Greenwood further noted, "The vast majority of FUM growth during the period came from GQG, which continues to grow exceptionally rapidly."
Other Considerations
The relationship between the boutiques' FUM and the economic benefits received by PAC can vary dramatically based on factors such as:
- the fee structures of each boutique;
- PAC's ownership interest in the boutique; and
- the specific economic features of each relationship between PAC and the boutique.
Accordingly, PAC cautions against simple extrapolation based on FUM trends.
Tier 1 Boutique is a term used to describe an asset manager that PAC expects to produce at least
an average of A$4m of annual earnings for PAC over the next three years, while a Tier 2 Boutique is one that PAC expects will contribute less than this amount. Although there is no guarantee any Tier 1 boutique will meet this threshold, this categorisation is intended to provide insight into which boutiques are expected to be the most economically impactful to Pacific Current Group.
Pacific Current Group Limited (ABN 39 006 708 792)
Level 29, 259 George Street, Sydney NSW 2000 Australia
www.paccurrent.com
Tel: +61 2 8243 0400 // Fax: +61 2 8243 0410
ASX ANNOUNCEMENT
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Open-end is a term used to indicate funds under management that are not committed for an agreed period and therefore can be redeemed by an investor on relatively short notice. Closed-end is a term used to denote funds under management where the investor has committed capital for a fixed period and redemption of these funds can only eventuate after an agreed time and in some cases at the end of the life of the fund.
AUTHORISED FOR LODGEMENT BY:
Paul Greenwood
Managing Director & Chief Executive Officer and Chief Investment Officer
-ENDS-
CONTACT
For Investor enquiries:
- Paul Greenwood - Managing Director & CEO and CIO
- pgreenwood@paccurrent.com
- (+1) 253 617 7815
For Media enquiries in the US:
- Jessica Rettig - Director Marketing
- jrettig@paccurrent.com
- (+1) 720 398 6711
ABOUT PACIFIC CURRENT GROUP
Pacific Current Group Limited 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. As of 30 September 2020, Pacific Current Group has investments in 15 boutique asset managers globally.
ASX ANNOUNCEMENT
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Appendix
Funds Under Management - 30 September 2020
Open End | Closed End | Total FUM as at | |||
A$millions | 30 June 2020 | 30 September 2020 | 30 June 2020 | 30 September 2020 | |
30 September 2020 | |||||
Beg FUM | Ending FUM | Beg FUM | Ending FUM1 | ||
Tier 1 Boutiques | |||||
Aether | - | - | 2,230 | 2,142 | 2,142 |
Carlisle | 3,085 | 2,712 | 503 | 511 | 3,223 |
GQG | 64,695 | 77,666 | - | - | 77,666 |
Proterra1 | - | - | 4,198 | 4,476 | 4,476 |
Victory Park | - | - | 4,747 | 4,737 | 4,737 |
Total Tier 1 Boutiques | 67,779 | 80,378 | 11,679 | 11,865 | 92,243 |
Tier 2 Boutiques | |||||
Blackcrane | 724 | 509 | - | - | 509 |
CAMG | - | - | - | - | - |
EAM | 1,533 | 1,683 | - | - | 1,683 |
ROC | - | - | 6,649 | 7,088 | 7,088 |
Pennybacker1 | - | - | 2,712 | 2,638 | 2,638 |
SCI | - | - | - | - | - |
Seizert | 2,245 | 2,204 | - | - | 2,204 |
Total Tier 2 Boutiques | 4,502 | 4,395 | 9,361 | 9,726 | 14,121 |
Total FUM | 72,281 2 | 84,773 | 21,040 2 | 21,591 | 106,364 |
Total FUM as at | Net Flows3 | Other4 | FX movement5 | Total FUM as at | |
30 June 2020 | 30 September 2020 | ||||
Tier-1 | 79,458 | 7,323 | 8,661 | (3,198) | 92,243 |
Tier-2 | 13,863 | 146 | 397 | (286) | 14,121 |
Total | 93,321 | 7,469 | 9,059 | (3,484) | 106,364 |
- FUM for Proterra Investment Partners and Pennybacker Capital Management represent regulatory FUM from one quarter in arrears.
- Beginning FUM for 30 June 2020 has been adjusted to reclassify Pennybacker FUM as Closed End.
- For Closed End funds, Net Flows only includes additional capital commitments. Distributions to limited partners of Closed End funds will be reflected as reduction in Net Asset Value, which is included in the 'Other' category for PAC reporting.
- Other includes investment performance, market movement and distributions.
- The Australian dollar strengthened against US dollar during the quarter. The AUD/USD exchange rate was 0.6890 as at 30 June 2020 compared to 0.7174 as at 30 September 2020. The Net Flows and Other items are calculated using average rates.
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Pacific Current Group Ltd. published this content on 30 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 22:49:02 UTC