The listing of two Pinnacle aShares exchange traded funds (ETFs) on the Australian Stock Exchange will mark a major milestone for Pinnacle Investment Management (ASX:PNI) and the ETF industry.
The funds are the first move into the ETF space by Pinnacle Investment Management, under the Pinnacle brand.
Pinnacle aShares will be a range of active ETFs showcasing the investment excellence of Pinnacle’s house of boutique asset managers. The first two active ETFs will be managed by Pinnacle affiliate, Omega Global Investors.
The Pinnacle aShares Dynamic Cash Fund will use the ASX ticker, Z3RO, signifying the ETF’s trailblazing zero-management fee structure.
The Pinnacle aShares Global Dynamic Income Fund will use the ASX ticker, SAVE.
“Since we began in 2006, our mission has been to establish, grow and support a diverse stable of world-class investment management firms,” said Managing Director of Pinnacle Investment Management, Ian Macoun.
“This is our first move into Pinnacle branded ETFs. This 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.”
Pinnacle Investment Management’s Director of Listed Products, Chris Meyer, said he believes ETFs are becoming increasingly popular as more investors seek a simple and cost-effective way to access diversified investments.
“The great thing about these active ETFs is they can be bought and sold like any share on the ASX and we’re providing maximum transparency by disclosing the portfolio daily to the market,” said Mr Meyer.
“The listing of our zero-management fee ETF is shaking up the industry, it is a new concept in Australia and will allow investors to be more pro-active with their cash holdings.
“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 fees they pay. Z3RO aims to change that by offering a high interest rate and zero management fees.
“Z3RO’s only fee is the fund’s recoverable expenses, capped at 0.15% pa and expected to be below 0.05% once the fund is at a scale. Our objective is to pass on any benefits of scale directly to the investors in the fund.
“Our SAVE ETF is also a unique proposition – we aim to deliver consistent monthly income of 4% per annum above the RBA cash rate, this meets the income needs of many retirees but with much lower risk than the overall equity market.
“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.
“Through a single trade, Pinnacle’s SAVE ETF offers income diversification across domestic and global stocks and bonds, allowing a smoother journey while saving in retirement.”