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Pinnacle Profit Soars on Funds Under Management

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Funds management firm reports strong profit growth, driven by record inflows.

Pinnacle, the ASX-listed funds management firm, has announced a 49 per cent increase in full-year net profit, reaching $134.4 million. This result aligns with market expectations. The company reported earnings per share of 62.4¢, also in line with analyst forecasts, and declared a dividend of 60¢. Pinnacle specialises in taking minority stakes in various money managers, fostering growth and innovation within the sector.

The company reported a record $179.4 billion in funds under management (FUM), bolstered by $23.1 billion of net inflows. Pinnacle highlighted the significant contributions of Brisbane-based domestic and global equity manager, which accounted for almost 40 per cent of its interim net profit. The firm also acknowledged Life Cycle Investments, a global equities manager founded by ex-Royal London portfolio managers, as a key driver of growth.

Life Cycle Investments has experienced substantial expansion, with assets under management reaching $15 billion. Pinnacle lauded Life Cycle as the “fastest growing fund manager in the Australian market” over the preceding twelve months. This growth underscores Pinnacle’s strategic investments in high-potential fund managers.

Pinnacle, which currently holds a market capitalisation of $5 billion, continues to focus on identifying and supporting talented investment teams. Its diversified portfolio of affiliate fund managers allows it to offer a wide range of investment strategies and solutions to meet the evolving needs of its clients.

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