Pacific Current Reports 3.2% FUM Growth to A$31 Billion in Q1 2025
Pacific Current Group reported a solid 3.2% increase in funds under management to A$31 billion for Q1 2025, driven primarily by strong inflows at its USD-denominated boutique Pennybacker and positive market revaluations.
- Total FUM rose to A$31.0 billion from A$30.0 billion in Q1 2025
- USD-denominated funds increased 3.7%, led by Pennybacker inflows
- AUD-denominated boutique saw 4.1% FUM growth from inflows and market gains
- Executive Director Michael Clarke highlighted fundraising momentum in H2 FY2025
- Economic benefits to Pacific Current vary due to fee structures and ownership stakes
Steady Growth in a Competitive Landscape
Pacific Current Group Limited (ASX: PAC), a global multi-boutique asset manager, has reported a 3.2% increase in total funds under management (FUM) for the quarter ended 31 March 2025, reaching A$31.0 billion. This growth reflects a combination of strong inflows and favourable market revaluations, underscoring the firm’s ability to attract capital amid a complex investment environment.
The increase from A$30.0 billion in the previous quarter was notably driven by the USD-denominated boutique Pennybacker, which saw a 3.7% rise in FUM in its native currency. Pennybacker’s fundraising efforts gained significant traction, contributing materially to the overall inflows during the quarter. Meanwhile, the sole AUD-denominated boutique within Pacific Current’s portfolio recorded a 4.1% increase in FUM, supported by both new inflows and positive market movements.
Currency Dynamics and Boutique Diversity
Currency fluctuations played a subtle but important role in the reported figures. The Australian dollar strengthened slightly against the US dollar during the quarter, with the AUD/USD exchange rate moving from 0.6183 at the end of December 2024 to 0.6235 at the end of March 2025. This currency appreciation slightly tempered the AUD-reported growth of USD-denominated funds but did not overshadow the underlying positive momentum.
Pacific Current’s portfolio comprises eight boutique firms globally, each with unique investment strategies and fee arrangements. The company cautions investors against simplistic extrapolations of its financial results based solely on FUM trends, noting that the economic benefits realized by Pacific Current depend heavily on factors such as fee structures, ownership stakes, and bespoke agreements with each boutique.
Leadership and Strategic Outlook
Michael Clarke, Executive Director and Acting CEO, emphasized the acceleration of fundraising activities in the second half of the financial year, highlighting Pennybacker’s pivotal role in driving inflows. Clarke’s leadership during this transitional period appears to be stabilizing and energizing the group’s growth trajectory.
Looking ahead, Pacific Current’s ability to sustain and build on this momentum will hinge on its boutiques’ performance, continued capital raising success, and navigating currency and market volatility. The firm’s multi-boutique model offers diversification benefits but also introduces complexity in translating FUM growth into consistent earnings.
Bottom Line?
Pacific Current’s Q1 FUM growth signals positive momentum, but translating inflows into profits remains nuanced.
Questions in the middle?
- How will Pacific Current’s varied fee structures impact earnings as FUM grows?
- Can Pennybacker sustain its fundraising momentum amid shifting market conditions?
- What strategic moves will Acting CEO Michael Clarke prioritize to drive long-term growth?
