How did Aussie fund managers fare in FY24?
Money Management rounds up the financial results for Australia’s listed fund managers.
There were several Australian fund managers exhibiting the results of their turnaround efforts in FY24, while others still have a way to go to recover their previous best.
Pinnacle Investment Management
The first firm to report its results, on 2 August, said its total funds under management (FUM) were $110.1 billion, up from $91.9 billion a year ago. Net profit after tax (NPAT) was $90.4 million, up 18 per cent from the prior financial year.
The fund manager said it has its eyes on international growth, helped by the latest acquisition of UK affiliate Life Cycle Investment Partners run by the former global equities team at Royal London Asset Management.
It currently has $35 billion in FUM in international asset classes with “significant growth momentum”.
Magellan Financial Group
After a financial year full of turnaround steps, the firm announced its statutory NPAT was $238 million, up from $182 million in FY23. FUM was $36.6 billion, comprising $17.1 billion in retail assets and $19.4 billion in institutional ones, and it noted that outflows had slowed during the year.
The firm also announced it had acquired 29.5 per cent of the parent company of Vinva Investment Management, Vinva Holdings, for $138.5 million. Vinva manages active systematic equity strategies across Australian and global equity markets and has $22 billion in FUM, having been founded in 2010.
Platinum Asset Management
The firm announced a statutory NPAT of $45 million, a drop of 45 per cent from FY23 when it was $80.9 million. FUM was $13 billion, a decrease of 25 per cent from a year ago, and said it saw net fund outflows of $4.9 billion.
Another fund manager that is currently undergoing a turnaround strategy, chief executive Jeff Peters said the firm has already seen a review of its product range, closure of the Platinum Global Transition Fund, merger two listed investment companies, termination of its Irish UCITS platform, and the closure of its Cayman funds and London office.
Perpetual
The firm reported a significant statutory loss of $472 million compared to NPAT of $59 million in the previous year.
Total assets under management were $215 billion, up 1 per cent, driven by market performance and investment outperformance. However, net outflows were $18.4 billion which the firm acknowledged was “greater than expected”.
Earlier this year, Perpetual announced a strategic deal with private equity giant KKR that will acquire its wealth management and corporate trust business. However, on a shareholder call, analysts questioned chief executive Rob Adams on the viability of the scheme and whether it could be undone.
Pengana Capital Group
Pengana Capital Group reported a net loss after tax of $4.3 million due to the absence of performance fees, expenditure required to set up its private credit business, and limited revenue in global private credit funds. FUM stood at $3.3 billion, an increase of 10 per cent over the year.
The firm used its results to expand on its desire to attract growth from non-institutional investors into private markets funds.
Pengana currently has 22 per cent of its FUM in private market strategies, but plans for this to become the dominant part of its business in the medium term and to launch additional vehicles in FY25. It observed the asset class has higher margins and a competitive advantage, with Pengana being one of few Australian fund managers to offer them to non-institutional clients.
AUTHOR
Laura Dew
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