Commentary from Wilson Asset Management

Pacific Current Group (ASX: PAC)
Formerly known as Treasury Group, Pacific Current Group, owns stakes in several boutique funds management businesses in Australia and overseas with aggregate funds under management (FUM) of $63.7 billion. Over the past two-to-three years, the company’s share price fell as the business faced challenges including poor performance of one of its two flagship funds and issues with its capital structure following its merger with Northern Lights Capital Group in 2014. More recent developments have seen an improvement in Pacific Current’s outlook with the company repairing its balance sheet – last month it raised $33 million through an oversubscribed institutional placement. In addition, two of the company’s US-based fund managers, Aperio and GQG, have recently increased their funds under management significantly to contribute substantially to the 10.9% increase in Pacific Current’s aggregate FUM in the two months to 31 May. We believe PAC offers a good leveraged play and expect continued growth of Aperio and GQG’s FUM in particular to drive the company’s share price higher over the next two-to-three years.