Pinnacle Investment Management has announced it plans to launch a new affiliate from a team departing Royal London Asset Management (RLAM).
The asset manager has seen a number of global equities team depart the business, including head of equities Peter Rutter and portfolio managers Chris Parr, Will Kenney, James Clarke and Niko de Walden.
Rutter had worked at RLAM since 2017 from Waverton Asset Management where he was a director of global equities. Excluding de Walden, all four managers in the team previously worked together at Waverton.
At RLAM, the team was responsible for £10.4 billion ($20 billion) in assets under management across the firm’s global equity funds.
An ASX statement said: “Pinnacle confirms its intent to establish and back a new affiliate led by members of that team in due course, subject as usual to the pre-existing contractual obligations of those team members.”
This is the firm’s third offshore affiliate and its second in the UK. It already has Aikya, a emerging markets firm in UK and Langdon Equity Partners, a smaller companies manager based in Toronto, Canada. Aikya was launched in 2020 with an emerging markets team that formerly worked at Stewart Investors, while Langdon was launched in 2021.
Since launch, these have experienced “early success” in FUM and investments, the firm said, with Aikya managing $7 billion and Langdon managing $300 million.
Ian Macoun, Pinnacle managing director, said: “The Pinnacle Group is proud to continue to expand on our unique multi-affiliate model. Highly talented and experienced investors across the world are choosing Pinnacle as their partner of choice to establish, support and grow quality client-centric fund management businesses.
“In partnership with our world-class global distribution and marketing capabilities and institutional-grade infrastructure services, this team of experienced, high-calibre investors is afforded the optimal environment to deliver excellence to clients across the world.”
In its half-year results for the six months to 31 December, the fund manager said it saw net inflows of $4.5 billion compared to net outflows of $1.5 billion a year ago.
Retail net inflows were $1.8 billion and international net inflows were $3.1 billion, both up from a year ago when they were $0.3 billion and $0.7 billion respectively. Net profit after tax was $30.2 million, slightly down by 1 per cent from $30.5 million a year ago, and performance fees earned by affiliates post-tax contributed $12.3 million of the NPAT.
