Pinnacle’s total affiliate funds under management (FUM) declined 4 per cent from $83.7 billion on 30 June to $80.5 billion three months later.
Total net outflows for the three months to 30 September stood at $1.2 billion as $200 million retail net inflows and $200 million offshore net inflows were offset by $1.6 billion domestic institutional net outflows.
In an ASX update, Pinnacle said this result would have a “negligible impact” on overall management fee revenues in aggregate.
“During the three months to 30 September, there has been continued ‘recycling’ of domestic institutional FUM, with the outflows again skewed towards older, lower margin domestic business, and the inflows into higher margin strategies, including international markets,” Pinnacle noted.
Moreover, it said, “most affiliates and strategies continue to deliver performance to expectations or better”, with “short-term ‘style headwinds’” reported in a couple of affiliates.
Pinnacle also reported positive retail flows in Q1 FY23 despite economic uncertainty, challenging market conditions and poor investor confidence.
It cited “dramatic change” in the advice industry and said its retail distribution team continues to maintain “high activity” and engagement with clients and prospects.
“Pinnacle’s distribution success has been built on using consultative practices and focusing on client outcomes to build strong direct relationships with advisers,” the investment manager said.
“Sales enablement is a core objective of the marketing engine, which also delivers broad-based initiatives and activities to widen and deepen our relationships with advisers, brokers, researchers, and consultants.”
The successful execution of the above strategy has “significantly expanded” Pinnacle’s audience reach, it said, with 85 per cent growth to over 17,000 advisers reported in the three years to 30 June 2022.
Moreover, it revealed that 10,673 advisers were actively investing with Pinnacle affiliates across major platforms as at 30 June, which is an improvement of 656 new advisers in the six months to end of June.
