Pinnacle Investment Management has announced its funds under management (FUM) reached $100.1 billion at 31 December, up $8.2 billion or 9 per cent from June 2023.
In its half-year results filed with the ASX on Friday, Pinnacle said aggregate retail FUM rose 14 per cent to $25.9 billion, with net inflows for the period reaching $4.5 billion, compared to net outflows of $1.5 billion in the first half of financial year 2023.
It recorded a net profit after tax (NPAT) attributable to shareholders of $30.2 million, a slight dip compared to $30.5 million reported in the prior corresponding period.
Its share of affiliates’ NPAT was $37.3 million, a rise of 24 per cent from $28.4 million in 1H FY23.
In January, the investment manager had said it is cautiously optimistic about the second half of fiscal 2024, though it indicated that various events during the initial half of the fiscal year had collectively exerted a “broadly offsetting impact” on overall profitability.
It reiterated the uncertainty of markets in its half-year results, stating: “Over the period under review, macroeconomic and geopolitical events continued to cause uncertainty in investment markets, with challenging conditions for generating new business persisting, particularly in the Australian market.”
Still, it noted robust net inflows from international channels, with $14 billion of FUM coming from countries outside of Australia, and over $3.1 billion international net flows recorded in 1H FY24.
Over the past three years, its international channels saw over $8 billion in net international flows, it said, with the largest inflows going into global emerging markets, private credit, global equities, and global small caps.
In its ASX announcement, Pinnacle highlighted the early success of its overseas affiliates like London-based Aikya, which has since tripled its FUM and closed the period with over $4.5 billion in assets; and Toronto-based Langdon, which saw some $200 million of wholesale and retail FUM in the last year and a half.
It described its international distribution platform as an “engine of growth” as it enters the second half of the 2024 financial year with FUM exceeding $100 billion for the first time.
Its market outlook for the year ahead outlined that net inflows into private markets and alternative strategies have continued to build, as a defensive and income alternative.
“Most institutional remain cautious (underweight) public equities, both Australian and global, particularly in the context of recent market rallies, higher discount rates and uncertain earnings outlook, so ‘seizing market share’ will remain the key driver of positive net flows,” Pinnacle stated.
“Public and private credit expected returns remain attractive versus long term equity market returns, so they remain competitive at the asset allocation table.”
Within Australia, it flagged domestic equities (large and small cap), global emerging market equities, global equities (low carbon and energy transition portfolios), high-grade public credit, private credit, and sovereign bonds of interest.
