Funds under management as at 31 March 2021

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  1. 75.1k

    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 8.9% during the quarter ended 31 March 2021. Including the new investment in
    Astarte Capital Partners, total FUM grew 9.3%.
    Highlights from the quarter include the following:
    • Strong inflows across the portfolio including GQG, ROC, Carlisle, Proterra, and Victory Park;
    • During the quarter PAC acquired an interest in Astarte Capital Partners;
    • Market appreciation and increased valuations contributed to higher FUM;
    • In native currencies, USD-oriented fund managers saw FUM increase by 7.9%. When converting to
    AUD, the increase was slightly enhanced by the depreciation of the AUD against the USD.
    FUM flows and balances as at 31 December 2020 and 31 March 2021, by boutique tier and category, are
    shown in the Appendix attached.
    Pacific Current CEO, Paul Greenwood, stated, “While GQG continued to post large FUM gains, we were
    again encouraged by the breadth of growth across the portfolio. As we emerge from the pandemic it
    appears that many of our portfolio companies are very well positioned to grow, and as a result we expect
    continued capital raising success in 2021 and 2022.”
    Other Considerations
    The relationship between the boutiques’ FUM and the economic benefits received by PAC can vary
    dramatically based on factors such as:
    • the fees charged by each boutique on the assets it manages;
    • The varying size of PAC’s ownership interest in each boutique; and
    • the unique economic terms negotiated between PAC and each boutique including the manner in
    which PAC expects to realize value from its investment.
    Accordingly, PAC cautions against simple extrapolation of PAC’s projected results 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 AUD 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.
    Page 2 of 4
    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.

    courtesy of Bell Direct


    i hold PAC

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