2020 Half Year Results Six months to 31 March 2020 Emilio Gonzalez - - PDF document

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Pendal Group Limited Level 14, The Chifley Tower 2 Chifley Square Sydney NSW 2000 Australia ABN 28 126 385 822 pendalgroup.com

11 May 2020

Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 Penda endal Group Li

• up Limited I

ed Int nter erim P Prof

• fit A

Announc nnouncem ement nt f for

• r t

the s he six m mont

• nths ended 3

ended 31 M 1 Mar arch h 2020 2020 The following documents are attached for lodgement: Interim Financial Report and Appendix 4D ASX Announcement Ana nalyst P Pres esent entat ation

• n
• Chairman’s Letter

Yours sincerely Authorising Officer Joanne Hawkins Group Company Secretary Pendal Group Limited Tel: +61 2 9220 2000

2020 Half Year Results

Six months to 31 March 2020

11 May 2020

Emilio Gonzalez CFA, Group Chief Executive Officer Cameron Williamson CA, Group Chief Financial Officer

Agenda

2

Ite Item Present nter er 1H20 Overview

• 1H20 Highlights
• COVID–19
• Business Strength

Emilio Gonzalez Robust Business Model

• Diversification, FUM, Flows and Investment Performance

Emilio Gonzalez Financial Strength

• 1H20 Financial Highlights

Cameron Williamson Positioned for Growth

• Strategy
• Outlook

Emilio Gonzalez Q&A Emilio Gonzalez & Cameron Williamson

1H20 Results Presentation, 11 May 2020

1H20 Overview

1H20 Results Presentation, 11 May 2020

1H20 Results Presentation, 11 May 2020 4

1H20 Highlights

Note: Numbers versus prior corresponding period (pcp) 1H19

Cash NPAT up 2%

$86.6M

Base management fees up 1%

$240.9M

FUM outperformed

• ver one-year

70%

Average FUM up 2%

$98.9B

Closing FUM down 14% to

$86.0B

Investing for long-term growth

• Appointed Global Equity Impact

team

• Launched first specialist impact

product — Regnan Credit Impact Strategy

• JOHCM CEO, US commenced in

December quarter with growth mandate

Improved investment performance

• 70% of FUM outperformed over one-year
• Strong performance of defensive

strategies over COVID-19 period

Diversification underpins business resilience

• Average FUM up 2% to $98.9 billion
• Annuity style base management fees,

up 1% to $240.9 million

• Closing FUM down 14% for the half

compared to key equity indices1 which declined 25%

• Favourable currency contribution of $3.7

billion on Closing FUM for the half

1H20 Results Presentation, 11 May 2020 5

1H20 Financial Results

1H19 1H20 Change Averag age F e FUM $97.4b $98.9b 2% 2% Base managem ement fee margi gin 49 49 bps bps 49 49 bps bps

• Base management fees

$237.6m $240.9m 1% Performance fees $4.4m $0.6m (86%) Fee reven enue ue $243. 3.0m 0m $243. 3.3m 3m

• Operating

ng e expen enses ($140. 0.0) 0)m ($143. 3.1) 1)m 2% 2% Ca Cash sh NPAT $84.5m $86.6m 2% 2% Statutor

• ry NPAT

$69.6m $54.8m (21%) Operating ng p profit $103. 3.0m 0m $100. 0.2m 2m (3%) %) Operating ng profit margin 42% 42% 41% 41% (2%) %) Cas ash EPS EPS 26.6 cps 26.8 cps 1% 1% Interim dividend 20.0 cps 15.0 cps (25%)

1H20 Results Presentation, 11 May 2020 6

Pendal recognises the importance of dividends for shareholders

Interim Dividend

[ ]

• Dividend lower than normal circumstances due to

uncertainty of future potential impact on markets and client sentiment

• Interim dividend of 15.0 cps to be 10% franked
• Dividend represents a payout ratio of 56%
• Pendal stress-tested its business against a range of

financial scenarios, and while the Board is confident in the company’s ability to weather the impacts of the COVID-19 pandemic, it believes it is prudent and sensible to reduce the interim dividend

18.0 19.0 22.0 20.0 15.0 24.0 26.0 30.0 25.0 42.0 45.0 52.0 45.0 FY16 FY17 FY18 FY19 FY20 Interim dividend Final dividend

Dividends (cps)

1H20 Results Presentation, 11 May 2020 7

Focused on employee health and welfare, business continuity and client service

COVID-19

• Health and welfare of employees
• Business continuity
• Ensure no disruption to ongoing

management of client funds

• Continue excellence in client service
• Maintain capabilities to actively

position portfolios

• Meet fund liquidity at all times

Priority

• WFH – seamless delivery of client services
• Increased client support and communication
• Reassured by stress tests conducted:

– Prudent reduction in interim dividend – Discretionary spend curtailed – Variable remuneration aligned to revenue – Continuing commitment to investment in strategic initiatives for growth

• Positioning for the recovery
• Activated Global Business

Continuity Plans (BCPs)

• Oversight of COVID-19 response

team led by CRO

• Investment in enhanced remote

working capabilities

• Seamless transition to secure remote

working capability

• Stress-testing range of business and

financial scenarios

Actions Outcomes

1H20 Results Presentation, 11 May 2020 8

Business strength

• Investment-led boutique culture
• Diversified product offerings
• Global distribution network
• Structured to align interests on

performance and costs

• Margins reflect strong alpha generators

with capacity management

• Stable annuity style cash flows
• Fee model provides opportunity to earn

performance fees on relative basis

Robust business model

• Flexibility to enhance product

leadership in differentiated areas

• Creating a more flexible and scalable

global platform

• Experienced global leadership and

investment expertise

• Well positioned to take advantage of
• pportunities
• No debt
• Financial discipline
• Seed capital to support

newer strategies

• Variable costs flexed through

business model

Strong financial position Positioned for growth

Robust Business Model

Diversification, FUM, Flows & Investment Performance

1H20 Results Presentation, 11 May 2020

47% 7% 28% 28% 25% 25% 16% 6% 34% 34% 15% 15% 6% 6% 13% 13% 10% 10% 5% 5% 1% 1% 1H20 Results Presentation, 11 May 2020 10

FUM diversification supports resilience and growth¹

Robust Business Model

40% 40% 8% 8% 16% 16% 18% 18% 13% 13% 5% 5%

by asset class by geography

(client domicile)

by channel

Australian equities Global equities UK & European equities Asian & EM equities Cash Fixed Income Multi-Asset Other Australia² UK, Europe and Asia US Institutional Wholesale - Australia Wholesale - OEICs Wholesale - US Pooled Westpac - Other Westpac - Legacy 26% 26% 20% 0% 16% 16% 14% 14% 11% 11% 13% 13%

by currency

(equities only)

A$ US$ £ € ¥ Other 3

1H20 Results Presentation, 11 May 2020 11

FUM and flows by channel

Robust Business Model

30-Sep-19 Net FX 31-Mar-20 Breakdown of net flows Fee margin (bps) $b Closing FUM flows Other2 impact Closing FUM Pendal JOHCM Pendal JOHCM Institu titutio tional 38.0 0.2 (4.6) 1.2 34.8 (0.9) 1.1 24 49 Whol

• lesal

ale Australia 8.2 (0.5) (1.1)

• 6.6

(0.5)

• 67
• OEICs

19.1 (2.5) (4.3) 1.4 13.7

• (2.5)
• 64

US Pooled 16.3 (0.4) (1.5) 1.1 15.5

• (0.4)
• 81

Pend endal G Group C

• up Core F

Fund nds 81.6 .6 (3.2 .2) (11.5) 5) 3.7 .7 70.6 .6 (1.4 .4) (1.8 .8) 35 35 65 65 Westpa pac – Other her1 13.8 (1.8) (0.6)

• 11.4

(1.8)

• 20
• Westpa

pac - Lega egacy 5.0 (0.2) (0.8)

• 4.0

(0.2)

• 32
• Total

al P Pend endal G Group F

• up FUM

100. 00.4 (5.2 .2) (12.9) 9) 3.7 .7 86.0 .0 (3.4 .4) (1.8 .8) 31 31 65 65

• Closing FUM impacted by significant market decline in March
• Positive FX contribution due to lower AUD
• OEIC outflows predominantly from European strategies partly offset by positive flows into UK strategies
• Redemptions of $2B from Westpac book primarily due to ongoing consolidation of superannuation platform

12

Improved investment performance

Robust Business Model

1H20 Results Presentation, 11 May 2020

FUM 1H20 ($b) % FUM

• utperformed

1 Yr % FUM

• utperformed

3 Yr % FUM

• utperformed

5 Yr Global/In l/Inte ternatio tional E l Equitie ities 29.0 87% 96% 78% Austr tralia ian E Equitie ities 12.8 98% 97% 93% Cash sh 11.5 96% 100% 100% UK E Equitie ities 8.7 7% 7% 7% Fixed I d Incom

• me

8.3 97% 85% 44% Multi lti-Asse sset 4.6 2% 2% 2% Europ

• pean E

ean Equities 3.9 0% 0% 40% Emerging M ng Market et E Equities es 3.9 32% 47% 100% Asia ian E Equitie ities 1.5 78% 2% 3% Prop

• per

erty 1.3 100% 100% 100% Other her 0.5 19% 92% 91% Tota tal F l FUM 86.0 .0 70% 0% 71% 1% 65% 5%

Strong outperformance achieved relative to benchmarks across:

• Global/International strategies
• Australian Equities strategies
• Cash and Fixed Income
• Property

20% 26% 31% 23% 17% 20% 23% 21% 24% 34% 36% 25% 5 y 5 year ear 3 y 3 year ear 1 y 1 year ear Q1 Q2 Q3 Q4

1H20 Results Presentation, 11 May 2020 13

Strong March quarter performance has positioned a number of funds well for the future

Robust Business Model

% of funds1 across quartile rankings Variety of strategies outperforming over 1 year2

4.0% 7.1% 5.4% 7.1% 3.4% 5.0% 10.2% 5.1% 14.9% 4.8% 3.7% 1.7% 1.7% AEQ Focus AEQ MidCap AEQ MicroCap AEQ Property Securities Global Select International Select EM Small Cap UK Opps Asia ex Japan Small & Mid Cap Asia ex-Japan Pure Alpha Fixed Income Pendal Fixed Interest Monthly Income Plus

Strong Financial Position

1H20 Financials

1H20 Results Presentation, 11 May 2020

1H20 Results Presentation, 11 May 2020

1H20 Financial Results

Strong Financial Position

Highlights

• Cash NPAT of $86.6 million, up 2%
• Cash EPS of 26.8 cps, up 1%
• Positive contribution from higher average markets and lower AUD

FUM and base management fees

• Average FUM of $98.9 billion, up 2%
• Average MSCI ACWI1 up 10%
• Average AUD down 5% vs GBP and 6% vs USD
• Base management fees of $240.9 million, up 1%

Cost management

• Operating expenses of $143.1 million, up 2%
• Lower variable staff costs
• Fixed costs up 14%, impacted by lower AUD and non-recurring FY19 items

Outlook

• 2H20 opening FUM 13% lower than 1H20 average FUM
• Expected FY20 fixed cost growth of low to mid single digits on a constant currency basis
• Lower non-staff operating costs in 2H20 due to COVID-19
• Investment in strategic initiatives such as operating platform to continue

15

16

Fee revenue ($m)

Strong Financial Position

1H20 Results Presentation, 11 May 2020

243. 243.0 243. 243.3 4.7 .7 1.2 .2 0.8 .8 (2 (2.6) ) (3 (3.8) )

1H19 fee revenue Institutional revenue Wholesale revenue Westpac revenue Performance fees Other fee revenue 1H20 fee revenue

1H20 Results Presentation, 11 May 2020 17

Margins reflect strong alpha generators with capacity management

Strong Financial Position

• Overall fee margin maintained despite downward fee pressure trend across industry
• Fee margins excluding Cash and Fixed Income stable
• Westpac now 8% of total management fee revenue

Base management fee by channel (%) Base management fee margins by channel (bps)

20% 23% 22% 28% 29% 60% 58% 63% 63% 63% 20% 19% 15% 9% 8% 1H16 1H17 1H18 1H19 1H20

Institutional Wholesale Westpac¹

accounts and Westpac Capital. Westpac mandates previously classified as Institutional FUM (1H15-1H17) have been reclassified from Institutional to Westpac

43 44 41 38 36 70 70 72 70 72 28 26 25 24 23 50 49 51 49 49 1H16 1H17 1H18 1H19 1H20

Institutional Wholesale Westpac¹ Total 56 57 58 57 58 T ot

• tal

al ex ex C Cas ash an and F d Fixed I ed Incom

• me

140. 140.0 143. 143.1 3.8 .8 6.0 .0 4.1 .1 (10. 10.8) 8)

1H19 Fixed employee Variable employee Other fixed Other variable 1H20

1H20 Results Presentation, 11 May 2020 18

Operating expenses

Strong Financial Position

• Increased

employee expenses driven by additional FTE on initiatives and investment in Global leadership

• Higher IT, data,

brand and insurance costs

• Lower AUD
• Lower

performance fees

• Lower profit
• utlook
• Higher average

FUM and prior period one-offs

Business model supports a cost base where a material component is variable and is linked to revenue: in periods where revenue declines, there is a natural offset with lower costs, particularly lower employee variable remuneration

1H20 vs 1H19 operating expenses ($m)

1H20 Results Presentation, 11 May 2020 19

Balance sheet strength

Strong Financial Position

63.5 89.2 177.7 238.9 199.7 14 16 14 16 14 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Seed capital Number of funds seeded 97.8 108.7 122.2 76.2 123.9 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

Seed capital investments1 ($m) Net cash1 ($m) Net assets ($m) Net tangible assets per share2 ($)

731.1 724.8 847.4 871.8 900.7 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 0.57 0.73 1.04 1.14 1.13 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

177. 177.7 238. 238.9 199. 199.7 (2. 2.8) 8) 43. 43.8 20. 20.2 (118. 8.3) 3) 75. 75.0 4.1

Mar 18 seed portfolio Redemptions Additional investments Investment performance Mar 19 seed portfolio Redemptions Additional investments Investment performance Mar 20 seed portfolio 1H20 Results Presentation, 11 May 2020 20

Seed investments provides for future growth

Strong Financial Position

• Redemption of US SMID and Global

Smaller Companies investments following closure of funds in Oct/Nov 2019

• Additional investment into Global Opps

OEIC, Global Income Builder OEIC and Mutual Fund

• $44m invested into Global Income

Builder, Concentrated Global Share Fund and Multi-Asset Target Return Fund

($m)

Positioned for Growth

Strategy and Outlook

1H20 Results Presentation, 11 May 2020

1H20 Results Presentation, 11 May 2020 22

• Attract and retain investment talent that creates a portfolio of complementary strategies
• Disciplined capacity management for the preservation of investment performance
• Ongoing development of extension strategies and new products in line with evolving client needs
• Leverage global distribution network to drive new client relationships
• Investment in technology to drive efficiencies and enhance client experience
• Develop world class ESG / RI capability
• Investing in people, products, distribution, and technology to provide for future long-term growth

and better serve our clients

Investing for growth and diversification

Strategy – Positioned for Growth

1H20 Results Presentation, 11 May 2020 23

Expanding Regnan’s capabilities into investment management

Positioned for Growth

Vision is to become one of the world’s foremost responsible investment managers

• Expanded in-house ESG research, advisory and

engagement firm Regnan into investment management

• Appointed Global Equity Impact team
• Partnered with investment teams to develop products
• Launched first specialist Regnan Impact product -

Regnan Credit Impact Strategy

• Develop Regnan brand into a global stewardship and

investment management business

• Invest in new investment teams and ESG/RI specialists
• Create differentiated specialist products
• Launch Global Equities Impact Fund, market globally

(Q4 CY20)

1H20 initiatives Strategic priorities

1H20 Results Presentation, 11 May 2020 24

Launch of Regnan Impact strategies

Positioned for Growth

• Appointed four-person team in December 2019
• Global Equity Impact fund to be launched in Q4 CY20
• Strategy to be marketed globally through JOHCM and Pendal distribution channels
• Active strategy that aims to generate long-term outperformance by investing in mission-driven companies that

are contributing solutions to the world’s sustainability challenges faced, as represented by the UN SDGs

Regnan Global Equities Impact Strategy Regnan Credit Impact Strategy

• Launched into Australian market in February 2020
• Actively managed portfolio of highly rated, impact and sustainably screened bonds targeting

market returns and measurable impact

• Product developed utilising Regnan ESG expertise with Pendal Australia fixed income team
• Distribution through Private Wealth, For Purpose Organisations, and Family Wealth Offices

1H20 Results Presentation, 11 May 2020

Leveraging our global distribution across regions providing access to diverse client base

Positioned for Growth

North America Australasia1

• HNW / Family offices
• Financial planners
• Superannuation Funds
• Endowment Funds
• Sovereign Wealth Funds
• Sub-advisory
• Investment platforms
• HNW / Family offices
• Pension Funds
• Endowment Funds
• Sovereign Wealth Funds
• Sub-advisory
• Wirehouses

UK and Europe

• HNW / Family offices
• Financial planners
• Pension Funds
• Sovereign Wealth Funds
• Sub-advisory
• Investment platforms

Investment strategies

Regional equity strategies Global equity strategies Impact strategies Multi-Asset Cash and Fixed Income

25

1H20 Results Presentation, 11 May 2020 26

Dedicated CEOs focused on regional growth

Positioned for Growth

• The US market represents a key growth opportunity for Pendal
• Product line-up is well positioned for growth, driven off improved performance
• Medium and long-term potential for product expansion, leveraging strong reputation as a

leading active management boutique

• Opportunity to expand further into Europe
• Launch of Regnan strengthens existing value proposition and opens up new client

relationships

• Well positioned for post-Brexit world
• Seen as trusted adviser and increasingly partnering with clients to develop products
• Successfully expanding our model portfolio representation
• Early success in realignment of distribution strategy

UK, , Eur urop

• pe & Asia

ia

Alexandra Altinger

Austral alia

Richard Brandweiner

Nor

• rth

th America

Nick Good

1H20 Results Presentation, 11 May 2020 27

Creating a more flexible and scalable global platform

Positioned for Growth

• Need to replace current support services

provided by Westpac (HR, registry, custody and accounting)

• Upgrade key systems to new generation

(Trading, reporting and data management)

• Opportunity to leverage global scale and gain

efficiencies

• Streamline and improve operating platform
• Reduce cost and complexity while creating

efficiencies through automated data, reporting and information

• Better pricing by leveraging of global scale
• Improve use of digital services for better client

experience

• Turn data into a business enabler to better

understand clients and improve sales processes

• Improved resilience, security and reduce

future spend

• Reduces operational risk

Drivers Outcomes

1H20 Results Presentation, 11 May 2020 28

Looking to the Future

HY20 Result

• Starting 2H20 FUM materially lower

than average 1H20 FUM

• Investing in global operating platform
• Developing and launching Impact

products

• Market volatility and industry

pressures creating opportunities

• Continuing to invest in long-term

strategic initiatives

• Australian performance fees2 as at 30

April 2020 were $12.0m

• Strong balance sheet with no debt
• Robust business model
• Annuity style cash flows
• Diversification delivering resilience
• Global distribution capabilities
• Remain committed to initiatives to

deliver on growth

• Experienced global management team and

broad investment expertise

• Employee equity ownership – alignment of

interests between employees & shareholders

Outlook Well Positioned

• Higher average markets despite

extreme market falls in March

• Cash NPAT up 2%
• Stable margins
• Interim dividend of 15.0 cps
• Disciplined cost control
• UK regulator has advised the

investigation1 has been closed with no further action to be taken

Q&A

1H20 Results Presentation, 11 May 2020

Appendices

1H20 Results Presentation, 11 May 2020

1H20 Results Presentation, 11 May 2020 31

Segment Profit and Loss

$m 1H19 1H2 H20 Change Change % Pendal Australia JOHCM Inter-segment Pendal Group Avg FUM ($b) 97.4 47.3 52.9 (1.3) 98.9 1.5 2% Base fee margin 49bps 31bps 65bps

• 49bps

0bps

• Base management fees

237.6 71.9 171.3 (2.3) 240.9 3.3 1% Performance fees 4.4

• 0.6
• 0.6

(3.8) (86%) Other fee revenue 1.0 1.8

• 1.8

0.8 80% Total al f fee r e revenu nue 243. 43.0 73.7 .7 171. 71.9 (2.3 .3) 243. 43.3 0.3 .3

• Employee expenses

(99.5) (40.3) (52.2)

• (92.5)

7.0 (7%) Other operating expenses (40.5) (18.0) (34.9) 2.3 (50.6) (10.1) 25% Total al o

• per

perating e g expe pens nses (140. 0.0) 0) (58.3) 3) (87.1) 1) 2.3 .3 (143. 3.1) 1) (3.1 .1) 2% 2% Operatin ting p profit fit 103. 03.0 15.4 .4 84.8 .8

• 100.

00.2 (2.8 .8) (3%) %) Non operating items 4.2 2.5 0.5

• 3.0

(1.2) (29%) Tax (22.7) (5.4) (11.2)

• (16.6)

6.1 (27%) Ca Cash NP NPAT 84.5 .5 12.5 .5 74.1 .1

• 86.6

.6 2.1 .1 2% 2% Operating profit margin 42% 21% 49%

• 41%

(1%) (2%)

1H20 Results Presentation, 11 May 2020 32

Cash EPS

26. 26.6 26. 26.8 1.0 (1. 1.2) 2) 0.2 2.2 (3. 3.1) 1) 1.1

Cash EPS 1H19 Base management fees Gross performance fees Other fee revenue Employee expenses Other operating expenses Tax/non

• perating

Cash EPS 1H20

(cps)

1H20 Results Presentation, 11 May 2020 33

Cash EPS Calculation

Number of securities Cash EPS calculation1

(m) 1H19 1H20 Weigh ghted aver erag age e ordinary shares on issue 318.0 322.8 Numbe ber of performance right hts on issue 1.7 2.3 Numbe ber of options ns on issue ue 13.9 5.7 1H19 1H20 Ca Cash sh net t profit afte ter tax x ($m) m) 84.5 86.6 Weigh ghted aver erag age e fully diluted ordinary shares on issue ue (m) 318.0 322.8 Ca Cash sh EPS (cp cps) s) 26.6 26.8

for issuance upon conversion of performance rights and exercise of options

1H20 Results Presentation, 11 May 2020 34

Adjustments from Statutory to Cash NPAT

54. 54.8 86. 86.6 19. 19.3 2. 2.4 4 2. 2.9 9 24. 24.8 (19. 19.2) 1. 1.6 6

1H20 NPAT Amortisation

• f employee

equity grants Amortisation

• f employee

deferred share

• f performance

fees and related incentives Amortisation & impairment of intangibles Net losses

• n financial

assets Cash cost of

• ngoing equity

grants in respect

• f the current

period Tax effect 1H20 Cash NPAT

($m)

35

FUM and Flows by Asset Class

1H20 Results Presentation, 11 May 2020

30-Sep-19 Closing FUM Net Flows Other2 31-Mar-20 Closing FUM $b Core Westpac Legacy Westpac Other1 Equi quities es: Australia 17.3 (0.7) (0.1) (0.3) (3.4) 12.8 Global/International 30.8 (0.6) 0.0 (0.1) (1.1) 29.0 UK 10.6 0.7 0.0 0.0 (2.6) 8.7 Europe 6.7 (1.9) 0.0 0.0 (0.9) 3.9 Emerging Markets 4.4 0.0 0.0 0.0 (0.5) 3.9 Asia 1.9 (0.2) 0.0 0.0 (0.2) 1.5 Proper

• perty

2.0 0.0 0.0 (0.2) (0.5) 1.3 Cas ash 11.4 0.0 0.0 (0.3) 0.4 11.5 Fixed I ed Inc ncome

• me

8.3 (0.1) 0.0 0.0 0.1 8.3 Mul Multi-Asse sset 6.3 (0.2) (0.1) (0.9) (0.5) 4.6 Other her 0.7 (0.2) 0.0 0.0 0.0 0.5 Total F l FUM UM 100. 100.4 (3. 3.2) 2) (0. 0.2) 2) (1. 1.8) 8) (9. 9.2) 2) 86. 86.0

1H20 Results Presentation, 11 May 2020 36

Performance Fees

Fund FUM $m (31 Mar 2020) Performance fee period to Benchmark3 Participation rate % Pendal endal Pendal Focus Australian Share Fund1 562 30 June S&P/ASX 300 Accum Index 15% Pendal MidCap Fund1 367 30 June S&P/ASX 150 ex Top 50 Accum Index 20% Pendal MicroCap Opportunities Fund 1 252 30 June S&P/ASX Small Ord Accum Index 20% Pendal Fixed Interest Fund 96 30 June Bloomberg AusBond Composite 0+ Yr Index 20% Pendal Australian Long/Short Fund1 2 30 June S&P/ASX 200 Accum Index 15% Mandates 1,501 Various Various JOHCM CM2 JOHCM UK Equity Income Fund 3,553 31 December FTSE All-Share TR Index 15% JOHCM UK Dynamic Fund 2,736 31 December FTSE All Share TR Index 15% JOHCM Global Select Fund 2,193 31 December MSCI ACWI NR Index 15% JOHCM European Select Values Fund 1,306 31 December MSCI Europe NR Index 15% JOHCM Continental European Fund 1,275 31 December MSCI Europe ex UK NR Index 15% JOHCM Global Opportunities Fund 755 31 December MSCI ACWI NR Index 15% JOHCM UK Opportunities Fund 611 31 December FTSE All-Share TR Index 15% JOHCM Global Emerging Markets Opportunities Fund 545 31 December MSCI Emerging Markets NR Index 15% JOHCM Japan Fund 337 31 December Topix TR Index 15% JOHCM UK Growth Fund 286 31 December FTSE All-Share TR Index 15% JOHCM European Concentrated Values Fund 185 31 December MSCI Europe NR Index 15% JOHCM Asia ex Japan Fund 182 31 December MSCI AC Asia ex Japan NR Index 15% JOHCM Asia ex Japan Small & Mid Cap Fund 24 31 December MSCI AC Asia ex Japan Small Cap NR Index 15% JOHCM Japan Dividend Growth Fund 11 31 December Topix 100 TR Index 15% JOHCM Concentrated Global Share 3 31 December MSCI World 15% Mandates 2,652 Various Various Tot

• tal f

funds unds/mandat mandates w with per h perfor

• rma

manc nce f e fees ees 19, 19,434 434 Cur urrent ent s stat atus us of

• f Pendal

endal A Aus ustralia per a perfor

• rmanc

ance f e fees ees w with h per perfor

• rma

manc nce per e period endi

• d ending 30

ng 30 June une 2020 2020 ($m) $m) 4 12. 12.0

1H20 Results Presentation, 11 May 2020 37

Long-term Performance

Per erfor

• rman

mance r e rel elat ative to benc

• benchmar

hmark Australian Equities 1 year (pa) 3 years (pa) 5 years (pa) Since inception (pa) Pendal Australian Share Fund +1.27% +1.37% +0.72% +0.99% Pendal Focus Australian Share Fund +4.01% +3.17% +2.59% +2.79% Pendal Imputation Fund

• 1.39%
• 0.01%
• 0.58%

+1.56% Pendal Australian Long/Short Fund +2.29% +1.43% +1.21% +3.01% Pendal Ethical Share Fund +1.74% +1.46% +0.91% +1.46% Pendal MidCap Fund +7.08% +3.76% +2.45% +6.32% Pendal Smaller Companies Fund +1.08% +0.55% +1.06% +6.16% Pendal MicroCap Opportunities Fund +5.42% +5.17% +6.76% +18.24% Global equities 1 year (pa) 3 years (pa) 5 years (pa) Since inception (pa) JOHCM Global Select Fund +3.41% +3.76%

• 0.52%

+2.26% JOHCM Global Opportunities Fund

• 0.43%

+1.12% +2.56% +2.61% JOHCM International Small Cap Equity Fund +0.96% +0.68% +1.14% +1.02% JOHCM International Select Fund +4.97% +4.61% +2.40% +5.35% Pendal Concentrated Global Share Fund

• 15.20%
• 3.96%

N/A

• 2.91%

UK equities 1 year (pa) 3 years (pa) 5 years (pa) Since inception (pa) JOHCM UK Growth Fund

• 3.67%
• 4.05%
• 3.69%

+2.36% JOHCM UK Dynamic Fund

• 7.39%
• 2.64%
• 0.44%

+4.08% JOHCM UK Equity Income Fund

• 9.89%
• 3.74%
• 2.11%

+2.13% JOHCM UK Opportunities Fund +5.12% +2.08% +2.20% +3.26% European equities 1 year (pa) 3 years (pa) 5 years (pa) Since inception (pa) JOHCM Continental European Fund

• 3.39%
• 0.94%

+0.24% +3.72% JOHCM European Select Values Fund

• 12.63%
• 6.52%
• 1.76%

+4.24% JOHCM European Concentrated Values Fund

• 10.39%
• 4.01%
• 0.79%
• 0.79%

1H20 Results Presentation, 11 May 2020 38

Long-term Performance

Per erfor

• rman

mance r e rel elat ative t e to

• benc

benchmar hmark Emerging Market Equities 1 year (pa) 3 years (pa) 5 years (pa) Since inception (pa) JOHCM Global Emerging Markets Opportunities Fund

• 2.90%

+0.21% +0.64% +1.64% JOHCM Emerging Markets Small Cap Fund +10.21% +7.54% +7.35% +7.91% Asian equities 1 year (pa) 3 years (pa) 5 years (pa) Since inception (pa) JOHCM Japan Fund

• 7.76%
• 4.22%
• 3.36%

+0.33% JOHCM Asia ex Japan Small & Mid Cap Fund +14.93% +3.73% +3.75% +5.96% JOHCM Asia ex Japan Fund +4.78%

• 3.44%
• 1.53%

+1.60% Property 1 year (pa) 3 years (pa) 5 years (pa) Since inception (pa) Pendal Property Securities Fund +7.06% +3.90% +2.61% +1.41% Pendal Global Property Securities Fund +1.19% +1.48% +1.05% +1.29% Cash & fixed income 1 year (pa) 3 years (pa) 5 years (pa) Since inception (pa) Pendal Enhanced Cash Fund +0.43% +0.81% +0.78% +0.41% Pendal Fixed Interest Fund +1.70% +0.30%

• 0.27%

+0.33% Pendal Monthly Income Plus Fund +1.67% +2.98% +2.35% +3.11% Pendal Pure Alpha Fixed Income Fund +3.69%

• 0.29%
• 1.48%
• 0.34%

Multi-Asset 1 year (pa) 3 years (pa) 5 years (pa) Since inception (pa) Pendal Active Balanced Fund

• 2.96%
• 1.30%
• 1.13%

N/A Pendal Balanced Returns Fund

• 2.53%
• 1.11%
• 0.95%

+0.03% Pendal Active Conservative Fund

• 1.93%
• 0.89%
• 0.72%

+0.50% Pendal Active Growth Fund

• 2.72%
• 1.18%
• 1.07%
• 0.18%

1H20 Results Presentation, 11 May 2020 39

Important information for investors

Disclaimer

This presentation has been prepared by Pendal Group Limited (ABN 28 126 385 822). While the information in this presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation. This presentation contains forward looking statements. These forward looking statements have been made based upon Pendal Group’s expectations and beliefs concerning future developments and their potential effect upon Pendal Group and are subject to risks and uncertainty which are, in many instances, beyond Pendal Group’s control. No assurance is given that future developments will be in accordance with Pendal Group’s expectations. Actual results could differ materially from those expected by Pendal Group. The information contained in this presentation is not intended to be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. In this presentation, unless otherwise stated or the context otherwise requires, references to 'dollar amounts', '$', 'AUD' or 'A$' are to Australian dollars.