Pendal
Investment capabilities
Strategic Report
The Board and senior management annually review the opportunities and challenges facing the Group to identify strategic priorities over a three to five-year timeframe.
Our strategy focuses on our investment capabilities, developing and enhancing our distribution channels, identifying opportunities for growth and setting the key priorities for management. This provides clear direction on resource allocation and focus on the areas that strategically matter the most.
Our strategic priorities:
Investment capabilities
Identify new investment capabilities to diversify and provide for future growth
HIGHLIGHT
Investment in Regnan
Continuing to entrench responsible investment and stewardship into the broader business is a core part of our strategy over the next five years and beyond.
In February 2019 Pendal Group moved to full ownership of Regnan – adding 14 years’ average specialised ESG research experience to Pendal’s capabilities.
FY19 Achievements
- Moved to full ownership of Regnan providing specialist ESG capability for Pendal Group
- Maintained a program with external partners in identifying new teams that brings differentiated investment capability
- Made additional hires into existing investment teams
FY20 Focus
- Continue to identify new investment strategies and teams that can materially grow FUM
- Develop extension strategies that can provide further investment capabilities
- Seek out specialist ESG/RI capability that broadens our Responsible Investing and ESG offering
Distribution
Develop and enhance distribution channels
to drive sales
HIGHLIGHT
Catering to growing need for income
Ageing populations are increasing the demand for products that provide income during retirement. Through progressively rolling out new Income strategies, our platform presence is broadening which is leading to increasing flows and FUM.
FY19 Achievements
- Established distribution presence on US West Coast
- Made key hires in the UK distribution team
- Achieved new platform approvals for key income strategies such as the JOHCM Global Income Builder and Pendal Dynamic Income funds
- Repositioned Australian sales resources to reflect development in Australian adviser market
FY20 Focus
- Improve messaging on existing ESG/RI activity in existing investment process
- Deliver a more focused product to channel approach in identifying client market segments
- Continued expansion of European sales
- Raise brand awareness in selective markets
- Seek out new platform opportunities to broaden sales
People
Attract, develop and retain superior investment talent
HIGHLIGHT
Expanded Global Executive Committee to support future growth
Appointment of Alexandra Altinger (CEO JOHCM UK, Europe & Asia) and Bindesh Savjani (Global CRO), with decision to appoint dedicated regional CEO for JOHCM US business.
FY19 Achievements
- Key executive positions filled
- Alexandra Altinger as JOHCM CEO – UK, Europe and Asia
- Nick Good as JOHCM CEO – US (to commence 2 December 2019)
- Bindesh Savjani – Group Chief Risk Officer
- Appointed Aled Smith as JOHCM Investment Director
- Appointed Dan Campbell as Pendal Australia Investment Director
- Recruited additional sales resources for the US and UK markets
FY20 Focus
- Continue to identify and attract investment talent that can support growth
- Continue to develop and implement succession and retention plans
- Develop talent management program for key leaders in the business
Operating platform
Create an operating platform that enables efficient execution of strategic priorities
FY19 Achievements
- Identified and agreed key requirements to transition off Westpac back-office and related services
- Identified opportunities to leverage global scale and capabilities
- Conducted process and data audit in Australian business to identify efficiencies
- Newly created Head of Data position filled
- Initiated program involving external parties on the adoption of new technologies
FY20 Focus
- Carry out request for proposal and due diligence on new service providers for back-office services
- Move to globalised services in areas that have been identified where economies of scale can be achieved
- Rationalise application architecture to improve return on system expenditure
- Invest in data management and digitisation to provide better client experience in the future