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Pinnacle NPAT up 36.1%

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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. 

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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

Sarah Simpkins

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. 

You can contact her on [email protected].