Pacific Current : Funds Under Management – June 2020

Tacoma // Denver // Sydney // Melbourne

ASX ANNOUNCEMENT

30 July 2020

Funds under management as at 30 June 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 17.8% to AUD 93.3 billion (USD 64.3 billion) during the quarter ended 30 June 2020.

Highlights from the quarter include the following:

• GQG FUM grew significantly during the quarter as a result of net inflows and the rebound in equity markets;
• In native currencies, USD oriented fund managers saw FUM increase by 34.5%. 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 31 March 2020 and 30 June 2020, by boutique tier and category, are shown in the Appendix attached.

Pacific Current CEO, Paul Greenwood, stated, "It was another strong quarter of growth, almost exclusively driven by massive inflows at GQG. Aside from GQG it was a quiet period in terms of new business, largely due to a decline in new allocations among institutional investors in the wake of the Covid-19 pandemic." Greenwood further noted, "We are starting to see signs that the significant disruption in the fundraising environment is beginning to improve, but it is still too early to know when we might get back to historical levels of allocation activity."

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: [phone] // Fax: [phone]

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
• 1. [e-mail]
  1. ([phone]

For Media enquiries in the US:

• Jessica Rettig - Director Marketing
• 1. [e-mail]
  1. ([phone]

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 June 2020, Pacific Current Group has investments in 15 boutique asset managers globally.

ASX ANNOUNCEMENT

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Appendix

Funds Under Management - 30 June 2020

		Open End		Closed End	Total FUM as at
	A$millions	31 March 2020	30 June 2020	31 March 2020	30 June 2020
	30 June 2020
		Beg FUM	Ending FUM	Beg FUM	Ending FUM4
	Tier 1 Boutiques			2,502	2,230	2,230
	Aether	-	-
	Carlisle	3,518	3,085	494	503	3,588
	GQG	47,625	64,695	-	-	64,695
	Proterra4	-	-	5,178	4,198	4,198
	Victory Park	-	-	5,210	4,747	4,747
	Total Tier 1 Boutiques	51,143	67,779	13,384	11,679	79,458
	Tier 2 Boutiques
	Blackcrane	934	724	-	-	724
	CAMG	-	-	-	-	-
	EAM	1,318	1,533	-	-	1,533
	ROC	-	-	6,909	6,649	6,649
	Pennybacker4	3,216	2,712	-	-	2,712
	SCI	-	-	-	-	-
	Seizert	2,308	2,245	-	-	2,245
	Total Tier 2 Boutiques	7,774	7,214	6,909	6,649	13,863
	Total FUM	58,917	74,993	20,293	18,328	93,321
		Total FUM as at	Net Flows1	Other2	FX movement3	Total FUM as at
		31 March 2020				30 June 2020
	Open End	58,917	12,166	11,387	(7,478)	74,993
	Closed End	20,293	7	(529)	(1,443)	18,328
	Total	79,210	12,173	10,858	(8,920)	93,321

1. 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.
2. Other includes investment performance, market movement and distributions.
3. The Australian dollar strengthened against US dollar during the quarter. The AUD/USD exchange rate was 0.6140 as at 31 March 2020 compared to 0.6890 as at 30 June 2020. The Net Flows and Other items are calculated using average rates.
4. FUM for Proterra Investment Partners and Pennybacker Capital Management represent regulatory FUM from one quarter in arrears.