Mr Macoun said he expected Omicron to slow the economy this quarter. He said Pinnacle on January 6 asked all of its staff in Sydney, Melbourne, Brisbane, New York and London to work from home, but did not prevent them from entering if they wanted to.
“It feels like we’re locked in again both in Australia and most of the world, really, with omicron spreading very quickly.
“The economy is really going down a lot because people can’t find staff. So many businesses are downsizing because people are isolated, ”he said.
Pinnacle, which is an ASX200 company, buys stakes in fund management firms in different asset classes. It provides fundraising and back office services and receives a share of the income from its affiliates.
Its affiliates reported $ 18 million in performance fees for the six months ending December, of which its share was $ 6.2 million. That amount was less than $ 44.3 million in total in performance fees and $ 11 million in Pinnacle’s share for the same period in 2020. Pinnacle is due to release its full results on February 3.
Mr Macoun said local pension funds were sticking to benchmark and vanilla tracking strategies after Australian Prudential Regulation Authority (APRA) performance tests for super funds that came into effect in 2020.
He cited hedge funds as an example of strategies Australian pension funds had lost their appetite for.
Pinnacle Investment Management reported net income of $ 67 million after tax for fiscal 2021, more than double the previous year. Its boutique partners closed in June 2021 with $ 89.4 billion in combined assets under management.
In a surprise deal announced last November, Pinnacle said it would spend $ 75 million to buy a 25% stake in private equity firm Five V. It asked shareholders to help fund the deal. acquisition with a fundraising of 105 million dollars.
Its other partner boutiques include listed equity fund managers Hyperion Asset Management, Firetrail Investments, Antipodes Partners and Plato Investment Management. He also owns a stake in Palisade, which recently bought Port of Geelong for $ 1.2 billion with Spirit Super.