Pendal Group Limited (Pendal) was listed on the Australian Stock Exchange in 2007 as a specialist investment manager with a history of managing and creating wealth for clients for over 45 years.
The business was originally established in 1969 as Ord-BT Ltd, backed by Ord Minnett and Bankers Trust Company (New York). Ord-BT established its first nominee company in 1971 called Pendal Nominees, to hold assets on behalf of its first prospective client, Dalgety Pension. Pendal is a reversal of Dal(gety) Pen(sion).
In 1978, Ord-BT became fully owned by Bankers Trust Company (New York) and changed its name to BT Australia Ltd. BT Australia became known as a progressive, innovative and successful organisation offering investment banking, equities and fund management services to domestic and overseas clients. BT’s long history of strong investment performance and client service made it one of the most successful funds management businesses in Australia and one of the most recognised brands in the investment industry.
In 1998, Deutsche Bank acquired Bankers Trust Company (New York) and with it BT Australia. BT Australia was subsequently acquired by US-based Principal Financial Group (Principal) in August 1999. In 2002, Westpac acquired the business from Principal, folded the funds management division together with Rothschild Asset Management and Westpac Investment Management business to create BT Financial Group.
In 2007, the investment management arm of BT Financial Group listed as a separate investment management business on the Australian Securities Exchange as BT Investment Management (BTIM), with Westpac retaining majority ownership. The establishment of a specialist investment management business provided for a business model that attracts and retains superior investment talent aligned to delivering superior investment returns for clients.
In 2011, BTIM expanded offshore by acquiring J O Hambro Capital Management (JOHCM) a London based boutique active equity manager. This started the transformation of BTIM to a global investment management organisation.
In 2015, Westpac reduced its holding to approximately 31%, and in 2017, further reduced its holding to approximately 10%. These sell-downs provided increased size and diversity of the company’s shareholder base, an increased free float resulting in greater liquidity of the shares and eligibility for consideration in key market indices. Westpac has signalled that, subject to market favourable conditions, it intends to sell its remaining stake sometime in the future, but not before the release of Pendal’s First Half 2018 Results on 10 May 2018. Westpac remains an important client for Pendal.
In 2018, Pendal changes its company name from BT Investment Management Limited to Pendal Group Limited (ASX: PDL), following approval from its shareholders. To reflect the new name, Pendal also changed the names of all its funds and its Australian subsidiary companies. There was no change to J O Hambro Capital Management’s name or brand.