Pinnacle Investment Management is entering the active ETF market with the launch of two ETFs, marking a major milestone for the company.
Pinnacle aShares ETFs are the first move into the ETF space under the Pinnacle brand and will eventually incorporate a range of active funds that showcases the investment strategy of Pinnacle.
The Dynamic Cash Fund ETF will have no management or performance fees, a first for Australia and Global Dynamic Income Fund will offer targeted cash plus 4 per cent monthly dividend income.
Ian Macoun, managing director of Pinnacle Investment Management said Pinnacle’s mission was to establish, grow and support a diverse stable of investment management firms.
“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,” he said.
Pinnacle Investment Management’s director of listed products, Chris Meyer said investors were seeking simple and cost-effective ways to access investments, which were driving ETFs’ popularity.
“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,” he said.
Mr Meyer said the zero-management ETF, Dynamic Cash Fund (Z3RO) would be a new concept for Australia and would allow investors to be more proactive.
“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,” he said.
The Global Dynamic Cash Fund (SAVE) aimed for a consistent monthly income that would meet the income needs of many retirees said Mr Meyer but with much lower risk.
“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,” he said.
The two ETFs will be managed in Australia by Pinnacle affiliate Omega Global Investors.
Written by Eliot Hastie.