Why the Pendal Group (ASX:PDL) share price roared 8% higher on Monday?

We look at what the company announced today.

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Key Points

  • The Pendal share price closed up 7.8% to $5.39
  • It comes amid a board reshuffle following departure of the company's chair
  • The incoming Deborah Page will assume the head role

The Pendal Group Ltd (ASX: PDL) share price finished in positive territory today following changes to its board.

At market close, the fund manager's shares were 7.8% higher at $5.39. But despite today's strong gains, the company's shares are still down more than 6% in a week.

What's driving Pendal shares higher?

Investors are buying up Pendal shares after the company announced a change in its board members.

According to the comany's announcement, Pendal advised James Evans has decided to retire as chair of the board with immediate effect.

Stepping into his shoes as of today will be current director of the Pendal board Deborah Page.

Evans' tenure within the company lasted for almost 12 years. He's held the chair position for the last 8 years.

During his time, Evans successfully transformed Pendal from an Australian-only fund manager into a global asset management powerhouse. Funds under management (FUM) leapt from $34.3 billion to $135.7 billion as at 31 December 2021.

The period included the acquisition of J O Hambro Capital Management (JOHCM) and, more recently, Thompson, Siegel and Walmsley (TSW).

Incoming chair Page took up the role as independent non-executive director of Pendal in April 2014. She also served as chair of the audit and risk committee since 2016.

The release noted Page has extensive experience as a company director and chair across a range of sectors. These include funds management, insurance, and technology.

Currently, she is a director of ASX listed companies Brickworks Ltd (ASX: BKW), Growthpoint Properties Australia (ASX: GOZ), and Service Stream Ltd (ASX: SSM).

Furthermore, the board announced the inclusion of Ben Heap as an independent non-executive director from 1 March 2022.

Heap previously held the title as managing director for UBS Global Asset Management in Australia. Prior to this, he held senior roles with UBS Global Asset Management, based in New York.

Pendal share price review

It's been a disappointing year for the Pendal share price, falling by almost 17% in the 12-month period. Recently, the company's shares reached a 52-week low of $4.73 before staging a small rebound.

Based on valuation grounds, Pendal commands a market capitalisation of roughly $2.06 billion, with approximately 382 million shares on hand.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Brickworks. The Motley Fool Australia owns and has recommended Brickworks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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