Pengana reports nil performance fees in 1H23

Pengana/financial-results/performance-fees/

27 February 2023
| By Laura Dew |
image
image image
expand image

Fund manager Pengana Capital Group paid zero performance fees in the first half of the financial year, a “highly unusual” position for the firm. 

Announcing its results to the Australian Securities Exchange for the six months to 31 December, 2022, the firm said funds under management (FUM) had declined 3% from $3.04 billion to $2.96 billion.

This then translated into management fee revenue decreasing by 18% from $22,026 to $18,081.

The firm said fund performance added $95 million to the FUM during the period but this was overshadowed by $123 million in fund distributions and net outflows of $47 million which had “uncharacteristically exceeded” inflows.

In an unusual move, no performance fees were paid out for the six-month period, compared to $28,598 a year ago. 

Chief executive and managing director, Russell Pillemer, said: “Although all our strategies (bar one) delivered positive performance, no performance fees were earned in the period. 

“We consider this to be a very unusual outcome due to the high degree of diversification amongst our funds, although we note that six months is a relatively short period and that were several exceptional market factors that impacted relative performance across our funds during these months.”

Looking ahead, Pillemer said the firm’s return to paying out performance fees would be dependent on market factors.

“We do expect these factors to normalize in the future and combined with alpha generation in our various strategies will return Pengana to normalised levels of profitability over the short to medium term,” he said.

Pengana is one of several asset managers to report a downturn in performance fees in the last six months with Magellan reporting fees down from $11.5 million to $0.1 million and Pinnacle announced fees fell from $6.4 million to $950,000. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS