Pendal Group has emerged as a prominent figure in Australia’s investment landscape, combining a legacy of active fund management with a forward-looking approach to global markets and sustainable investing. Headquartered in Sydney, Pendal specializes in delivering high-conviction investment strategies across equities, fixed income, and multi-asset portfolios. In 2023, the firm became part of Perpetual Limited, one of Australia’s most established financial services companies, marking a new chapter in its growth story.
Active management remains the cornerstone of Pendal’s philosophy. Unlike passive investment strategies that track market indices, Pendal emphasizes research-driven decisions, deep analysis, and concentrated portfolios designed to capture long-term value. This approach resonates with both institutional and individual investors seeking differentiated returns in increasingly complex financial markets. Across offices in Australia, the United States, the United Kingdom, and Europe, Pendal combines localized expertise with a global perspective, offering tailored solutions for clients worldwide.
Beyond performance, Pendal has embraced environmental, social, and governance (ESG) considerations as central to its investment process. Through its sustainable investing arms, including Trillium and Regnan, the firm seeks to integrate responsible practices into its portfolios, balancing financial objectives with long-term societal impact. The firm’s commitment to autonomy for its investment teams, alongside its recent integration into Perpetual, underscores a strategy that values both specialized expertise and scale. This article explores Pendal’s origins, investment philosophy, global operations, and approach to responsible investing, painting a comprehensive picture of a firm navigating modern financial challenges while remaining true to its core principles.
Origins and Evolution
Pendal’s roots trace back to the late 1960s, when a collaboration between Ord Minnett and Bankers Trust established an Australian investment business. Known initially as Ord-BT, the firm laid the foundation for a culture focused on disciplined research and client partnership. Over the years, the business underwent several ownership changes, including periods under Deutsche Bank, Principal Financial Group, and Westpac.
In 2011, the firm expanded its global footprint by acquiring London-based J O Hambro Capital Management (JOHCM), strengthening its international equity capabilities. The rebranding to Pendal Group in 2018 signaled a renewed focus on independence and active management. This transition reflected a deliberate effort to preserve the autonomy of its investment teams while expanding the firm’s presence across major financial markets. The name “Pendal” itself embodies a commitment to trust, heritage, and client-focused investing, emphasizing continuity amid industry change.
Investment Philosophy
Pendal’s investment approach centers on active management, high-conviction strategies, and autonomous fund teams. The firm believes that markets are not perfectly efficient, providing opportunities for research-driven managers to generate excess returns. Its multi-boutique model allows specialized teams to pursue differentiated strategies while sharing resources and expertise across the organization.
Australian Equities: Pendal’s domestic equity teams focus on in-depth company analysis to identify undervalued opportunities. Portfolios are typically concentrated, reflecting managers’ highest-conviction ideas in sectors ranging from healthcare to financial services.
Global Equities: International strategies leverage specialist insights from teams like JOHCM, applying rigorous analysis to markets across North America, Europe, and emerging economies. This ensures a blend of top-down macro views and bottom-up stock selection.
Fixed Income: Pendal’s fixed income strategies combine macroeconomic research with security-level analysis to optimize risk-adjusted returns. They emphasize diversification and capital preservation, which is particularly important in volatile or low-yield environments.
Multi-Asset Solutions: Multi-asset portfolios balance equities, fixed income, cash, and alternative investments to meet diverse client goals. Active allocation decisions are guided by both market conditions and long-term objectives, emphasizing flexibility and risk management.
The philosophy is rooted in the belief that disciplined research, combined with the autonomy to act on conviction, enables the firm to deliver superior long-term outcomes.
Responsible and ESG Investing
Sustainability is a key pillar of Pendal’s investment strategy. The firm integrates ESG factors into its portfolio construction, aiming to manage risk while capitalizing on opportunities created by environmental and social change. Through affiliates such as Regnan, Pendal has developed expertise in ESG research, engagement, and advisory services, ensuring that sustainability considerations are embedded in investment decisions.
Pendal offers several ESG-focused funds, including the Pendal Horizon Sustainable Australian Share Fund and Pendal Sustainable Australian Fixed Interest Fund. These strategies use exclusionary screens and sustainability criteria, reflecting the firm’s commitment to ethical and responsible investing. For Pendal, ESG is not a peripheral offering but a core component of fiduciary duty, ensuring that clients’ investments consider both financial returns and broader societal impact.
Integration with Perpetual Limited
The 2023 acquisition of Pendal by Perpetual Limited marked a significant milestone in the firm’s evolution. This merger expanded Perpetual’s multi-boutique asset management platform, combining assets under management and deepening its global reach. Importantly, Pendal retained autonomy over its investment processes, ensuring that its teams could continue to operate with independence while benefiting from enhanced distribution, operational support, and global scale.
The acquisition brought together complementary expertise, including Perpetual’s wealth management capabilities and Pendal’s active management strength. The combined platform now includes specialized teams across equities, fixed income, multi-asset, and sustainable investing, providing clients with a broader range of investment solutions. This strategic alignment demonstrates a model in which scale and specialized expertise coexist, enhancing both performance potential and market presence.
Global Operations and Market Strategy
Operating across Australia, the United States, the United Kingdom, and Europe, Pendal navigates complex global markets with a focus on research-driven, high-conviction investment. The firm balances the need for localized insight with global investment opportunities, creating portfolios that reflect diverse risk-return profiles.
Challenges in the current market include competition from passive investing, fee pressures, regulatory complexity, and the growing demand for ESG transparency. Pendal’s response has been to emphasize active expertise, investment autonomy, and careful integration of sustainability factors. Its multi-boutique structure allows it to remain agile and responsive, while scale and shared resources from Perpetual enhance operational efficiency.
By maintaining a culture of autonomy and disciplined research, Pendal positions itself to navigate volatility and uncertainty, ensuring that clients receive investment solutions tailored to both their objectives and evolving market conditions.
Conclusion
Pendal Group’s journey from a Sydney-based investment manager to a global multi-boutique platform under Perpetual illustrates the power of active management, autonomy, and responsible investing. By blending specialized expertise with global reach, the firm has built a model that emphasizes both client outcomes and sustainable practices.
As markets evolve, Pendal’s commitment to high-conviction investing, ESG integration, and careful stewardship positions it to continue delivering value. The firm demonstrates that disciplined research, combined with independence and scale, can meet the complex needs of modern investors while remaining true to a culture rooted in trust, insight, and long-term performance.
FAQs
What is Pendal Group?
Pendal Group is an Australian investment management firm specializing in active strategies, equities, fixed income, multi-asset, and ESG investing.
When did Pendal merge with Perpetual?
Pendal became part of Perpetual Limited in 2023, enhancing global capabilities while retaining investment autonomy.
What investment strategies does Pendal offer?
The firm offers Australian and global equities, fixed income, multi-asset solutions, and sustainable ESG-focused funds.
How does Pendal approach ESG investing?
Through integration across portfolios and partnership with Regnan, Pendal embeds ESG factors in research, engagement, and investment decisions.
Where does Pendal operate globally?
Pendal has offices and operations in Australia, the United States, the United Kingdom, and Europe, serving institutional and individual clients.
