Pinnacle performance fees fall below $1m

Pinnacle Investment Management has advised its net share of performance fees after tax will be less than $1 million, down from $6.4 million in the previous year.

In a statement to the Australian Securities Exchange (ASX), the firm said several of its strategies had outperformed their benchmarks but earned nil or lower performance fees as they entered the period behind the relevant high-water markets.

In other cases, it was the result of style-related performance.

“Following a review of affiliate investment performance relative to benchmarks and high-water mark levels as at 30 November 2022 for those strategies that have the potential to deliver performance fees during the first half each year, Pinnacle Investment Management Group Limited advises that it expects its net share of performance fees, after tax payable by affiliates on this revenue, to be potentially less than $1 million.”

Pinnacle affiliates included Coolabah Capital, Firetrail Investments, Hyperion Asset Management, Plato Investment Management and Metrics, but the statement did not specify to which affiliates it was referring.

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The firm said it expected performance fees would be higher in the second half as it believed the strategies had the potential to deliver performance fees over the full 12-month period.

A more specific estimate for the six-month period would be available from 9 January, 2023.