Pacific Current’s FUM Slips 3.1% Amid Currency Headwinds and Modest Inflows
Pacific Current Group reports a 3.1% decline in funds under management in Australian dollars for Q4 FY25, driven largely by currency appreciation despite modest inflows and performance gains in native currencies.
- Total Funds under Management fell to A$30.0 billion from A$31.0 billion
- 3.1% decline in AUD terms mainly due to Australian dollar appreciation
- Native currency FUM increased by 0.9%, supported by Pennybacker, Astarte, and IMC Global
- Slight 0.2% FUM decrease for AUD-denominated fund manager due to outflows
- PAC cautions against direct financial extrapolation from FUM trends due to varied fee and ownership structures
Pacific Current’s Quarterly FUM Update
Pacific Current Group Limited (ASX – PAC), a global multi-boutique asset management firm, has reported a slight contraction in its total funds under management (FUM) for the quarter ending 30 June 2025. The group’s aggregate FUM decreased to A$30.0 billion from A$31.0 billion in the previous quarter, marking a 3.1% decline when measured in Australian dollars.
Currency Impact Masks Underlying Growth
While the headline figure shows a decline, the story beneath the surface is more nuanced. The Australian dollar strengthened notably against the US dollar during the quarter, which exerted a currency headwind on the reported FUM in AUD terms. When measured in the native currencies of the underlying boutique managers, the FUM actually increased by 0.9%. This growth was driven by modest net inflows at boutique managers Pennybacker and Astarte, alongside performance-driven gains at IMC Global.
Conversely, the one AUD-denominated fund manager within the group experienced a slight 0.2% decrease in FUM, attributed to outflows. This mixed performance underscores the complex dynamics at play within Pacific Current’s portfolio of eight boutique firms worldwide.
Management Commentary and Strategic Considerations
Michael Clarke, Pacific Current’s Executive Director and acting CEO, acknowledged the slowdown in fundraising activity during the final quarter of FY25. He highlighted that while Pennybacker and Astarte contributed positively with net inflows, these gains were offset by currency fluctuations that weighed on the overall AUD-denominated FUM.
Importantly, Pacific Current cautions investors against simplistic interpretations of FUM trends as direct indicators of the company’s financial performance. Variations in fee structures, ownership stakes in boutiques, and bespoke economic arrangements mean that changes in FUM do not translate linearly into revenue or profit changes for the group.
Looking Ahead
As Pacific Current navigates a challenging currency environment and a mixed inflow landscape, the firm’s diversified boutique model may provide resilience. However, investors will be watching closely for how these currency headwinds and boutique-level performances evolve in the coming quarters, especially given the nuanced relationship between FUM and economic benefits to the group.
Bottom Line?
Pacific Current’s FUM dip highlights currency risks and boutique dynamics that will shape its next chapter.
Questions in the middle?
- How will ongoing AUD strength impact Pacific Current’s reported FUM and revenue?
- Can Pennybacker and Astarte sustain their net inflows amid a slowing fundraising environment?
- What are the implications of varied fee and ownership structures on Pacific Current’s future earnings?
