Overseas affiliates drive Pinnacle FUM in FY25

Pinnacle Investment Management Group has reported strong net profits and growth in FUM following the success of its global growth strategy.

In its FY25 financial year results, the group reported a 63 per cent increase in funds under management (FUM) across the 18 Pinnacle affiliates, with total FUM reaching $179.4 billion at 30 June 2025.

The $69.3 billion increase in FUM over FY2025 comprised net flows of $23.1 billion, acquired FUM of $27.9 billion, and $18.3 billion from market movements and investment performance.

International FUM accounted for a significant portion of FUM growth over the financial year, jumping 179 per cent to $51.4 billion at 30 June 2025.

The $33 billion increase in international FUM comprised net inflows of $4.8 billion, acquired FUM of $22.2 billion, and increases due to market movements and investment performance of $6 billion.

International and retail FUM combined has grown from $17.2 billion to $91.1 billion over a five-year period and now accounts for 51 per cent of total FUM across the 18 affiliates.

This represents a substantial shift in the composition of its FUM since it first listed in 2016, when 84 per cent of Pinnacle’s $19.8 billion FUM was sourced from Australian institutions only.

The investment firm also attributed its strong growth to product innovation and development across its wholesale, retail and international markets.

These developments have provided access to new client verticals such as LITs, LICs and ETFs, open-ended vehicles for private market strategies, and build-out of fund structures available to international investors.

Pinnacle said it remains focused on building out a diversified affiliate base, relevant to a wide range of investors, both in Australia and internationally.

“Since the inception of the first internationally domiciled Pinnacle affiliate, Aikya, we have continued to focus our expansion on new affiliates headquartered in global gateway cities with large addressable end-markets,” it said.

Pinnacle added three international affiliate groups during the 2025 financial year, including Life Cycle Investment Partners, Pacific Asset Management and VSS.

Life Cycle Investment Partners was the dominant contributor to FUM in the 2025 financial year, contributing $2.5 billion in net inflows since Pinnacle acquired a stake in the boutique investment manager based in London.

Performance fees support strong profits

Performance fees have continued to be a significant contributor to Pinnacle’s overall earnings, delivering $46.6 million to Pinnacle’s overall net profit after tax in FY25, up 49 per cent from the $31.2 million delivered in the 2024 financial year.

Pinnacle’s share of net profit after tax from its equity interests in affiliates was $129.7 million, a 43 per cent increase from $90.8 million in the 2024 financial year.

Pinnacle managing director, Ian Macoun, said the investment manager has sought to build a platform of affiliates and investment strategies that enables it to be more relevant to more clients, in more countries.

“We have invested in our distribution and infrastructure capabilities meaningfully to allow us to make this broader range of strategies and products available to a wider range of clients and geographies,” said Macoun.

“We made significant progress on this agenda during FY25 with the addition of three further affiliates to our platform, bringing further asset class and geographical diversification.”

Pinnacle said it also remains attracted by the growth in private markets and sees opportunities to further broaden this capability.

“Equally, we are clear as to the value and indeed necessity of high quality, active investment management in the public markets. Pinnacle will continue to seek and support growth and further opportunities in both.”