Pendal's Transformational Shift Into Value : vimarsana.com

Pendal's Transformational Shift Into Value


Pendal’s Transformational Shift Into Value
May 11 2021
Completely overshadowing Pendal Group’s result, revelations the company is fully acquiring US-based fund manager Thompson, Siegel & Walmsley consummates management’s long-standing desire to add global value funds
-US acquisition to be double-digit EPS accretive
-Rebound in investment performance across UK/EU expected to enhance performance fee prospects
-FUM attrition risk could undermine EPS accretion
-100% acquisition of TSW fundamentally changes the incentivisation structures of the business
By Mark Story
While Pendal Group’s ((PDL)) strong first half 2021 result demonstrated some improving fundamentals for the fund manager, the announced 100% acquisition of Thompson, Siegel & Walmsley (TSW) overshadowed the result, with brokers quick to conclude the deal will be double-digit earnings per share (EPS) accretive.

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