Pinnacle Investment Management Group Limited · ASX:PNI
Pinnacle Investment Management — Macquarie Emerging Leaders Corporate Day 2018
25 slides from Pinnacle Investment Management's conference presentation, Jun 20, 2018
Slide 1: ASX cover letter - Presentation
For personal use only 20 June 2018 By electronic lodgement The Manager Company Announcements Office ASX Ltd 20 Bridge Street SYDNEY NSW 2000 Pinnacle Investment Management Group Limited – Presentation Pinnacle Investment Management Group Limited is pleased to attach a copy of a presentation that wil
Slide 2: Pinnacle Investment Management Group Limited (PNI)
For personal use only Pinnacle Investment Management Group Limited (PNI) Ian Macoun and Andrew Chambers Macquarie Emerging Leaders Corporate Day 20 June 2018
Slide 3: A snapshot of Pinnacle
A snapshot of Pinnacle For personal use only • A ‘multi-affiliate’ funds management firm, with currently 9 Affiliates • ‘Supported Independence’ model - Own equity in independent boutiques, powerful distribution and ‘infrastructure’ support. • Pinnacle established August 2006 – partnership of Wilson
Slide 4: Funds Under Management – April 2018
Funds Under Management – 30 April 2018 For personal use only 38.00 Total Pinnacle FUM - at 100% 35.7 36.00 34.00 32.00 30.00 28.00 26.5 26.00 24.00 FUM ($bn) - at 100% 22.00 19.8 20.00 18.00 16.1 16.00 14.00 12.3 12.00 10.9 10.3 10.0 10.00 7.9 8.00 6.00 4.4 3.5 4.00 1.7 2.00 - Jun 07 Jun 08 Jun 09 J
Slide 5: Funds Under Management – April 2018
Funds Under Management – 30 April 2018 For personal use only Consistent growth in retail FUM over the medium term – currently 22% of total FUM 3
Slide 6: Australia's leading multi-affiliate investment management firm
Australia’s leading “multi-affiliate” investment management firm For personal use only Structure promotes independence, accountability, focus and longevity • Executives of both Pinnacle and Pinnacle Affiliates have significant equity interests • Equity ownership enhances alignment with shareholders
Slide 7: Funds Under Management – December 2017
Funds Under Management – 31 December 2017 For personal use only Date Pinnacle Hyperion Plato Solaris RCL Palisade Antipodes Spheria Two Trees (total) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) 31 Dec 17 32,338 6,056 4,644 6,618 6,552 1,585 6,261 596 26 30 Jun 17 26,526 5,877 4,003 5,135 5,956 1,51
Slide 8: FY18 highlights to April 2018
FY18 highlights to 30 April 2018 For personal use only • FUM of $35.7 billion at 30 April 2018 • up $3.4 billion (10%) from $32.3 billion at 31 December 2017. • up $9.2 billion (35%) from $26.5 billion at 30 June 2017. • Retail FUM now $7.7 billion, up from $7.1 billion at 31 December 2017 and up $2
Slide 9: Firetrail Investments
Firetrail Investments For personal use only • Business established • Team of 10 in place and investment process commenced • Initial strategies • High Conviction • Absolute Return • Highly Recommended rating by Zenith for the High Conviction strategy • Marketing commenced • Terms • 23.5% equity • Dis
Slide 10: Overview of Pinnacle Affiliates
Overview of Pinnacle Affiliates For personal use only • Antipodes Partners – a pragmatic value manager of global equities (long only and long-short) o Funds under management have grown to in excess of $7.2 billion in under 3 years • Firetrail Investments – high conviction investment manager of Austr
Slide 11: Overview of Pinnacle Affiliates (continued)
Overview of Pinnacle Affiliates (continued) For personal use only • Resolution Capital – a specialist manager of Australian and Global listed real estate securities portfolios. o Funds under management has grown to more than $7.4 billion. • Solaris Investment Management – a specialist manager of Aus
Slide 12: Affiliate updates
Affiliate updates For personal use only • Antipodes – addition to the Colonial First Choice platform as a stand alone option. Demand for Antipodes EQMF • Hyperion – Global Equity strategy ranked No 1 for 1 year and 3 years to 31 March 2018 in the Morningstar Institutional survey • Palisade – Recent
Slide 13: Pinnacle Affiliates continue to win major industry Awards
Pinnacle Affiliates continue to win major industry Awards For personal use only 2016 Morningstar Fund Manager of the Year Awards: • Hyperion – Australian Fund Manager of the Year • Hyperion – Domestic Equities Category Winner, Australia • Hyperion – Domestic Equities Small Caps Category Winner, Aust
Slide 14: Continuing strong investment performance of Affiliates
Continuing strong investment performance of Affiliates 100% of Pinnacle Affiliated Investment Manager strategies and products (with a track record exceeding 5 years) have out For personal use only performed their benchmarks over the 5 years to 31 May 2018 5Y 10Y Inception Inception date Pinnacle Inv
Slide 15: Affiliates' investment performance to May 2018
Affiliates’ investment performance to 31 May 2018 For personal use only 13
Slide 16: Affiliates' investment performance to May 2018
Affiliates’ investment performance to 31 May 2018 For personal use only 14
Slide 17: Focus on managing the business to maximise profits and Company value
Focus on managing the business so as to maximise profits and Company value over the medium term For personal use only • We continue to build Pinnacle by taking a medium term approach o Make decisions and release information when it is reliable and representative of ‘real’ or genuine trends o Selecti
Slide 18: How does 'Horizon 2' add value in the Medium Term?
Focus on managing the business so as to maximise profits and Company value over the medium term For personal use only • How does ‘Horizon 2’ add value in the Medium Term? o Investment in growth initiatives that don’t require additional capital to be raised o Reasonable limits to be set given short-t
Slide 19: Horizon 2 examples undertaken in last 12 months
Focus on managing the business so as to maximise profits and Company value over the medium term For personal use only Horizon 2 examples undertaken in last 12 months: • Seeded Two Trees Global Macro Fund on 1 November 2017 with $5m o Promising discussions with early-stage investors • Established Dub
Slide 20: Ongoing expansion of domestic distribution platform
Focus on managing the business so as to maximise profits and Company value over the medium term For personal use only • Ongoing expansion of domestic distribution platform o Adding ‘capital markets’ expertise to accelerate launch of listed offerings (e.g. LICs, LITs, EQMFs) o Continued expansion of
Slide 21: Recap on Horizon Criteria – What could we acquire?
Recap on Horizon 3 Criteria – What could we acquire? For personal use only Criteria • Must not place the Company at risk • Only consider if low risk and high return on capital • Exercise great care and careful due diligence • Must be synergistic with existing core • Few will meet this test Status •
Slide 22: Progress to date – Platform and Reputation
Progress to date – Platform and Reputation For personal use only • A platform for GROWTH o Continuing investment excellence o Widespread industry recognition and support o ‘Article of faith’ reputation • Increasing diversification • Proven ability to build high quality investment managers, and facil
Slide 23: Summary and plans for the remainder of FY18
Summary and plans for the remainder of FY18 For personal use only • Maintain current momentum and investment to deliver medium term growth • Maintain culture – attract exceptional individuals to our business and retain them • Continue to deliver growth within existing affiliates • Continue to add ne
Slide 24: Disclaimer
Disclaimer For personal use only • This presentation has been prepared by Pinnacle Investment Management Group Limited (PNI). The information in this presentation is current as at 22 May 2018. • This presentation is not an offer or invitation for subscription or purchase of securities or a recommend
Slide 25: Disclaimer
Disclaimer For personal use only • Morningstar Awards 2016 (c). ©2018 Morningstar, Inc. All rights reserved. Awarded to Hyperion Asset Management for Australian Fund Manager of the Year, Domestic Equities Category Winner and Domestic Equities Small Caps Category Winner, Australia. The Morningstar An
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