Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

This year. We're going Beyond.

Westpac (ASX:WBC) sells its Pendal (ASX:PDL) shares

Westpac (ASX: WBC) has announced that it’s going to sell its Pendal (ASX: PDL) shares.

What is Pendal?

Pendal is the new BT Investment Management. Having moved away from Westpac, Pendal is now one of Australia’s largest fund managers, with more than $100 billion invested across its business.

What is happening?

Westpac has sold down Pendal shares in 2007, 2015 and 2017. It’s now going to sell its remaining Pendal shares.

The major bank has announced a fully-underwritten offer of the approximately 31 million shares, which is around 9.5% of Pendal, to institutional investors.

The offer price for the shares has been set at $5.98 per share, which is a discount of 4% to Pendal’s last closing price of $6.23 on 17 June 2020 and a 5.1% discount to the 30-day average share price of $6.30.

Westpac acting chief financial officer (CFO) Gary Thursby said: “Pendal is a highly regarded, independent business, and given Westpac’s commitment to simplify its operations and focus on banking in Australia and New Zealand, now is the right time to complete our divestment.”

Westpac said that it withdrew $2 billion of funds under management (FUM) in February 2020. Another $1 billion is expected later in the 2020 calendar year and then $0.08 billion is expected to be withdrawn later in the 2021 calendar year.

The major bank is now doing a strategic review of its BT wealth businesses including superannuation, platforms and investments, this will occur as part of the newly formed specialist businesses division. After this review, there may be a loss of some or all of the funds that Pendal manages for Westpac. Excluding the expected FUM withdrawals mentioned above and FUM originating from BT platforms, Pendal manages $14 billion for Westpac.

Time to sell Pendal?

The loss of FUM isn’t great for Pendal, so I can understand why investors may feel pessimistic about the situation. There’s also the ongoing shift towards cheap, passive investing. It’s good that Westpac is going to strengthen its balance sheet though.

Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned. 

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW or entering your email below.

Note: the report is 100% free.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW.

Note: the report is 100% free.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

Rask Media’s Ultimate BNPL Sector Report

Afterpay, Zip, Sezzle… is this the opportunity of a lifetime? Or is BNPL a ticking time bomb? This 7,500-word analyst report takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. 

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

As we emerge from COVID-19, some tech companies are growing faster than ever. Rask’s investment analysts have identified 3 growth stocks set to benefit. Big time.

Enter your email below to access this report for free, including the names, ticker codes and analysis.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.