Pinnacle Investment Management has seen its profit for the first half of financial year 2020 rise by 36.1 per cent from the year before.
The group recorded a net profit after tax (NPAT) of $13.8 million for the six months leading up to 31 December, up from $10.1 million in the prior corresponding period (pcp).
Revenue came to $11.4 million for the half, up by 32.6 per cent year-on-year from $8.6 million.
It is also in the process of rolling out its new affiliate, Reminiscent Capital. The Cayman fund for institutional investors will commence in the second quarter, following its pilot program last year.
Reminiscent will initially have a team of three leading it, led by David Adams, former executive director at Morgan Stanley.
Net inflows for the half year ended at $2 billion, including $900 million from retail (of which $200 million was LICs/LITs).
But institutional net flows at $1.1 billion were lower than expected. Pinnacle has remained optimistic that the pipeline will remain strong, expecting a higher rate of inflows from an “increasingly diverse client set, by geography and client set”.
Its aggregate affiliates’ funds under management (FUM) was $61.6 billion at 31 December, increasing by 13.4 per cent from $54.3 billion in the prior half.
Pinnacle’s aggregate retail FUM was at $14.9 billion, up 28.4 per cent from $11.6 billion at the end of June.
In December, Pinnacle had acquired a 25 per cent interest in Coolabah Capital for an initial $29.1 million payment in December, funded through the use of a $30 million debt facility from CBA. A further $5 million will be paid upon the business achieving certain milestones over the next 18-month to 4.5-year period.
Basic earnings per share (EPS) from continuing operations were 8.1 cents, up 32.8 per cent from 6.1 cents in the pcp.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
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