Pinnacle enters ETF sector
Pinnacle Investment Management has announced its first move into the exchange traded fund (ETF) space by listing two ETFs on the Australian Stock Exchange (ASX). These will be the Pinnacle aShares Cash Fund (Z3RO) and the Pinnacle aShares Global Dynamic Income Fund (SAVE) and both funds will be managed by Pinnacle affiliate, Omega Global Investors.
Pinnacle said that both funds would also offer zero-management fee which was a new concept in Australia and it would allow investors to be more pro-active with their cash holdings.
Pinnacle Investment Management’s director of listed products, Chris Meyer, said: “The truth is, we think investors are getting a bad deal on their cash, both in terms of the interest rate they earn and the fee they pay.
“Too many Australian investors have a concentration risk towards a handful of ASX stocks in their dividend income portfolio. This risk was evident in 2018 with the underperformance of the banks and Telstra.”
Z3RO was designed with the aim to change this by offering a high interest rate and zero management fees, with the only being fund’s recoverable expenses, capped at 0.15 per cent per annum and expected to be below 0.05 percent once the fund was at a scale, the firm said.
SAVE ETF, on the other hand, would aim to deliver consistent monthly income of four per cent per annum above the RBA cash rate.
Commenting on the announcement, managing director of Pinnacle Investment Management, Ian Macoun, said: “This is our first move into Pinnacle branded ETFs. The first range of listed funds, which have the frictionless ease of being traded on the ASX, is a move we hope will deliver a smoother journey for investors trying to meet their income needs in today’s extraordinarily low-yield environment.”
AUTHOR
Oksana Patron
Recommended for you
Perpetual has appointed a new CEO for affiliate J O Hambro Capital Management, as it tries to stem outflows and refresh the brand.
Outflows of US$1.4 billion from its US equity funds have contributed to GQG Partners reporting its highest monthly outflows for 2025 in August.
Domestic equity managers are lagging the ASX 200 in the first half of the year, according to S&P, with almost three-quarters of Australian equity funds underperforming over the six-month period.
ETFs saw almost $5 billion of inflows during August, with international equities gaining double those of fixed income funds, as total assets close in on $300 billion.
