Pendal : Funds under management – quarter ended 31 December 2018

Pendal Group Limited Level 14, The Chifley Tower 2 Chifley Square

Sydney NSW 2000 Australia

ABN 28 126 385 822

14 January 2019

ASX Announcement

• • Pendal Group Limited (PDL) - Funds under Management (FUM) for the quarter ended 31 December 2018

• • JOHCM performance fees for the year ended 31 December 2018

Funds under Management

(AUD $bn)
Institutional	17.8	0.3	(0.8)	17.3
Wholesale	7.9	0.1	(0.5)	7.5
Westpac/BTFG
- Legacy	7.5	(0.1)	(0.6)	6.8
- Other	13.5	(0.1)	(0.6)	12.8
Total Pendal Australia FUM	46.7	0.2	(2.5)	-	44.4
Segregated mandates	16.1	0.1	(1.5)	-	14.7
OEICs	23.5	(0.3)	(2.7)	(0.2)	20.3
US pooled	15.3	(0.2)	(1.9)	0.2	13.4
Total JOHCM FUM	54.9	(0.4)	(6.1)	-	48.4
TOTAL PENDAL GROUP FUM	101.6	(0.2)	(8.6)	-	92.8

*

30 Sep 18

31 Dec 18

Closing FUM* Net Flows Other** FX Impact Closing FUM

As at 30 September 2018, Westpac mandates totalling $6.9b previously classified in Institutional FUM were reclassified to Westpac - Other. Refer to the 2018 Full Year results presentation.

** Other includes investment performance, market movement and distributions.

Notes:

• 1. During the quarter the most significant impact on Pendal Group's FUM was adverse markets which saw the MSCI All Countries World Index in local currency terms decline 12.3% and the S&P/ASX All Ordinaries Index fall 9.7% over the period.

• 2. Pendal Australia saw net inflows of +$0.2bn during the quarter led by Australian equities (+$0.4bn) in the institutional channel, and positive net inflows into Australian equities, fixed interest and multi-asset funds in the wholesale channel (+$0.1bn).

  JOHCM experienced net outflows of -$0.4bn during the quarter with redemptions in European and Asian OEIC funds (-$0.7bn) being offset by inflows into UK and global OEIC funds (+$0.4bn). The US pooled funds saw net outflows of -$0.2bn driven by redemptions in the Asia ex-Japan fund.

• 3. The effect of the net flows during the December quarter on Pendal Group revenue is a decrease to annualised fee income of $3.2m.

• 4. The Australian Dollar strengthened +0.8% relative to the British Pound and weakened -2.3% against the US Dollar over the quarter which had a flat impact on FUM over the period. Movements in spot exchange rates were:

30 September 2018	31 December 2018
GBP / AUD USD / AUD 1.8119 1.7976 1.3847 1.4168

2

JOHCM Performance Fees

J O Hambro Capital Management (JOHCM) performance fees for the year ended 31 December 2018 total approximately $4.4m (£2.5m) in fee revenue. The performance fees will contribute approximately $1.9m to Pendal Group's cash net profit after tax (and statutory net profit after tax) for the current financial year ending 30 September 2019.

The JOHCM performance fees compare to the $47.5m (£27.0m) received for the prior corresponding period which contributed $17.8m to Pendal Group's cash net profit after tax (and statutory net profit after tax) for the financial year ended 30 September 2018.

Pendal Australia's annual performance fees are generally for a 30 June performance period and will be brought to account in the second half of the financial year.

For further information in relation to this announcement, please contact:

Cameron Williamson

Group Chief Financial Officer Telephone: [phone]