Pinnacle profits up 32%

Pinnacle Investment Management profits jumped 32% to the year ending June with Firetrail accounting for most of the net institutional inflows across its 13 affiliates.

The ASX-listed business, which takes stakes in boutique investment firms and offers distribution and other administrative support, reported a net profit after tax of $30.5 million attributable to shareholders which is 32% higher than last year's $23.1 million.

Pinnacle now has $54.3 billion in funds under management across 13 affiliates which include names such as Solaris, Firetrail, Plato and Hyperion.


Its stable of managers attracted $6.5 billion of new money in the year - split as $2.9 from retail investors and the remaining from institutional investors.

Pinnacle has made a push into listed funds (LICs, LITs and recently ETFs) which accounted for almost a third of retail inflows of the year $2.9 billion.

Majority of net institutional inflows came from Firetrail, a long short boutique set up by former Macquarie portfolio managers. Institutional flows were at other boutiques but there is a strong pipeline of prospects going into FY20, it said in company filings.

Fee revenue

Base management fees grew by 47.4% over the previous financial year as the funds under management swelled but performance fees were down.

Total revenue from its affiliates was $236.8 million this year. Of this about 6.5% or $15.3 million was in performance fees.

This is lower than last year's 10.2% or $17.2 million share of performance fees in the $168.4 million total affiliate revenue.

Read more: FiretrailPinnacle Investment Management
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