Pinnacle cornerstones OpenInvest funding round

Pinnacle Investment Management (ASX: PNI) (“Pinnacle”) and OpenInvest announce today that Pinnacle has invested A$3m to become the cornerstone investor in OpenInvest’s just completed A$5.5m fundraising round.

Melbourne-based fintech OpenInvest will use the funding to increase staff numbers to continue the roll out of its innovative investment administration technology platform that enables it to configure and underpin digital investing solutions for its partners. OpenInvest’s white label partners include wealth management firms, Hamilton Wealth Partners, Wentworth Securities and Collins House Private Wealth and asset managers, SG Hiscock and Blackmore Capital.

OpenInvest and Pinnacle have also agreed that OpenInvest will deploy a digital investing solution for Pinnacle.

Pinnacle Founder and Managing Director Ian Macoun said he was delighted to be investing in a home-grown technology platform that has been designed to enable leading asset and wealth management firms and stockbrokers to offer their own digital investing solutions to retail investors.

“This is a logical progression for the Pinnacle business. We want to offer an easier and more engaging way for Australia’s retail investors to access our growing network of world-class asset managers.

“By investing in OpenInvest via this funding round we are happy to support an exciting Australian financial technology company that we feel has broad application and strong growth potential.”

OpenInvest co-founder and CEO Andrew Varlamos said he and his colleagues were proud to be partnering with Pinnacle, and even more excited that Pinnacle has decided to invest in the OpenInvest business.

“We have a huge amount of respect for what Ian and his team have built at Pinnacle, with affiliates delivering consistent out-performance and now managing in excess of A$90bn. We look forward to deploying an engaging digital solution for Pinnacle so that they can reach an even broader audience of Australia’s retail investors.”

Pinnacle’s Director and Head of Retail Ramsin Jajoo put the OpenInvest partnership in the context of the major changes taking place in Australia’s financial services industry.

“With the introduction of increased regulation post the Hayne Royal Commission, the exit of the major banks from the wealth management sector and the ongoing reductions in the number of licensed advisers, there is a growing “advice gap” in this country.

“There are many Australians who would like to access professional investment assistance but find it too costly to obtain personal financial advice. OpenInvest’s technology will enable us to more readily help these retail consumers access our funds management expertise.”

Varlamos said OpenInvest had a strong pipeline of firms – asset managers, wealth managers and stockbrokers – for whom it was deploying  online investing solutions, and that this was a logical way to bring professional expertise to the broader market of Australia’s retail investors.

“The current zeitgeist – a proliferation of online trading apps, with extensive advertising about trading being fun and easy – is not healthy, and won’t last. Trading shares, CFDs or crypto is not the same as investing, and the data shows most amateur traders lose in the long run. The OpenInvest team is motivated by a commitment to bring trusted, experienced and dedicated professionals, like Pinnacle, within reach of all Australians.”

About OpenInvest

OpenInvest is a Melbourne-based fintech investment platform that enables its partners to offer managed portfolios to investors, either via the OpenInvest marketplace or their own online solution, alongside informative and engaging content. Through OpenInvest’s technology, investors of all sizes are able to obtain professional assistance in a low-cost, digital environment.

-ENDS-

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