The Pinnacle Investment Management Group Ltd (ASX: PNI) share price fell around 13.5% today after giving a market update.
The multi-affiliate investment management firm announced that net profit after tax (NPAT) from continuing operations is expected to be $10.1 million for the upcoming half-year result of the 2019 financial year.
The above guidance includes net losses on Pinnacle's 'principal investments' of $0.6 million and Pinnacle's $0.2 million share of performance fees earned by affiliates.
Funds under management (FUM) is $46.7 billion, which was up $8.7 billion (or 22.9%) from June 2018. Firetrail was responsible for the majority of total institutional net inflows. Around $6.8 billion of FUM was acquired in July 2018 with the Metrics Credit and Omega transactions.
There were $5 billion of inflows for the half-year, which included $1.4 billion from retail investors. Retail FUM stood at $9.4 billion at December 2018.
Pinnacle said that its affiliates continued their medium-term outperformance, 93% of 5-year affiliate strategies were outperforming at 31 December 2018.
