Ladies and gentlemen, thank you for standing by, and welcome to the Pinnacle Investment Management Group Half Year 2019 Results Investor Conference Call. At this time, all participants are in a listen-only mode. Following the presentation, there will be a question and answer session, during which time, if you wish to ask a question, you will need to press star one on your telephone keypad. Joining us on today's conference, we have Ian Macoun, Managing Director, Alan Watson, Chairman, and Executive Director, Adrian Whittingham. I must advise you that this conference is being recorded today, Friday the 22nd of February, 2019. I would now like to turn the conference over to your first speaker, Ian Macoun, Managing Director. Thank you. Please go ahead.
Good. Thanks for that. Thank you to everyone on the call this morning. Thanks for your time this morning, and thanks for your interest in P&I. We're announcing today our 2019 interim results, including the auditor-reviewed financial statements for the half year to 31st of December 2018. Let's jump straight to slide two. The bottom half of this slide sets out information that we announced on the 23rd of January, all of which we are confirming as correct following the auditor's review of our financial statements. I'll leave it for people on the call to read those points. The brief highlights are that our net profit after tax was AUD 10.1 million, up 25% on the prior corresponding period. Basic earnings per share were AUD 0.061, up 13% from the PCP. Diluted earnings per share AUD 0.057, up AUD 0.14 from the PCP.
The top half of this slide sets out some further information that we're announcing today. Obviously there's more detail again in the actual financial statements that we've lodged today, quite a bit of detail. Just very briefly up to the top of this slide, our share of affiliates net profit after tax was AUD 14.3 million for the half, which was up 44% from AUD 9.9 million in the PCP. Our funds under management were at AUD 48.7 billion at the 31st of January. We'd only previously reported the number to the end of December. That's up AUD 2 billion on the 31st of December number. Obviously markets were up substantially in January, and of course they're up further in February to date. This has quite a substantial impact on our funds under management and our P&L prospects.
Also, we've declared a fully franked interim dividend of AUD 0.061 per share payable on the 22nd of March. That's up 33% from the AUD 0.046 per share in the prior comparable period. Slide three sets out the business highlights for the half. Most of this was announced on the 23rd of January. Just a couple of pieces of new information on this slide. Firstly, Longwave commenced managed money on the 1st of February. I think people would recall that we've been incubating Longwave led by David Wanis. They will initially be doing small caps. We call it [crosstalk].
Quantamental.
Quantamental small caps. That's going very well. Longwave started managing some Pinnacle seed money on the 1st of February and it's going well. There's a little extra commentary in the last paragraph on this slide about the market impact on our funds under management. The market movement impact on total P&I FUM during the December quarter was about 7.5% of the average FUM during the period. This is the pattern that we're seeing. The ASX 300 that we use as an indicator was down 9.2% during the quarter, and the MSCI World Index 13%. Obviously, we have more Australian equities than anything, but we also have global equities. Our FUM was down 7.5% on account of market movements when the Aussie market was down 9.2% and the world market 13%. We move quite strongly with the market, our FUM does, but not 100%.
Something like, let's call it three-quarters of the market movement. Obviously, it moves around a bit, but that's a broad indicator of the impact of the market on our FUM. Obviously, there were substantial negative impacts on our P&L for the half occasioned by this drop in FUM. Firstly, there's the fact that the FUM drop reduces affiliates' profits. Affiliate profits were up strongly anyway, but not as strongly as they would have been if we hadn't had that market drop. Secondly, we incurred losses on our principal investments. Both realized and unrealized capital losses are taken on our P&L, on the P&L of Pinnacle Parent, straight through, even if they're unrealized. We had about an AUD 600,000 overall net loss on principal investments for the half year.
Thirdly, some distribution fees received in Pinnacle Parent are based on affiliate FUM, are somewhat lower on account of these market movements than they otherwise would be. Perhaps more importantly, poor market conditions prevented us from doing listed investment company and listed investment trust IPOs during the half, and Pinnacle Parent earns substantial upfront fees from such IPOs. We do earn ongoing fees from them, but it's those upfront fees that are really quite substantial in the short term, have the biggest impact. In the PCP, we earned AUD 928,000 from upfront LIC fees in Pinnacle Parent, and that amount was zero in the half that we're reporting on. The good news at this stage is that the Australian and global equities markets have retraced a substantial part of the Q2 losses during January and February so far. The ASX is up about 8% this calendar year.
We've made back all of our principal investment losses during January. The one month of January, our net PI impact was greater than the losses for the half, and we've had some further gains during February. The other thing is that we expect to be coming to the market next week with the IPO of a new Metrics LIC. I believe that PDS will be lodged on Monday with ASIC, and we'll be out in the market. That's MOT, the Metrics Opportunity Trust. We believe that market conditions are looking satisfactory for that to be successful. Who knows what the rest of the financial year holds for markets? You will all no doubt have your own views on this, just for the moment, conditions are treating us better than the brutal last quarter of calendar 2018.
If we move on now to slide four. The next couple of slides here set out some further detail behind our financial results, especially the Pinnacle Parent loss that was higher than in the PCP. The Pinnacle Parent loss was AUD 4.1 million, AUD 3.5 million if you take back the AUD 600,000 net loss on PI. That's during that half year period that we're reporting on. The PCP was AUD 1.8 million, the loss, or AUD 1.3 million if we take out the PI losses. In the second half of 2018, Pinnacle Parent broke even in the second half. The second half is typically better than the first half as we receive some annual success fees, for example. There are various other factors there.
This loss, I do want to explain, but you will see that we're talking a lot in this presentation about Horizon 2 investments and how we're investing in ongoing growth, resourcing up for ongoing Horizon 2 growth. That's the cause of this Pinnacle Parent loss. We've done a lot of work. We've added a lot of people. You'll see we mentioned that during the 18 months from the beginning of the PCP to the 31st of December, the number of people in Pinnacle Parent has increased from 39 to 61. We've done a lot of resourcing up. That's because we are confident that these Horizon 2 investments are going to bring us very substantial growth over the medium term. We take a short-term hit, but this is all good for the medium term. This is a major theme of this presentation.
We ask you please don't get hung up on Pinnacle Parent financials in isolation and come with us on this journey as we continue to invest in Horizon 2 initiatives that will each bring strong profits over the medium term. On this slide, we start off by emphasizing that Pinnacle remains well-positioned to deliver superior business and financial performance in the medium term. We've got four points, four dot points there, that sort of reiterate the basis for our confidence in this regard. Then just at the bottom of this slide, we point out that during this half, we're reporting on costs that ramped up very much as we had planned in preparation for ongoing growth. Pinnacle Parent revenues don't come through and grow as strongly.
They didn't in the half come through as strongly as we originally expected because of the weak market conditions over the four months to the end of December. We make the point that Pinnacle Parent loss is expected to be less in the second half than in the first half. Just quickly continuing on with slide five. This continues the financial detail. Besides the Pinnacle Parent numbers, you can see that there was this healthy increase of AUD 4.4 million in our share of affiliate profits to AUD 14.3 million, and that produces the overall AUD 10.1 net profit after tax for the half year. We do emphasize, as always, that the second half profit tends to be a lot larger, a lot more than double the first half. Again, we've mentioned that Pinnacle Parent's loss will be better than in the first half.
As always, you see that some inflows drive our share of profits from affiliates. I think people are very familiar with the pattern of our financials now. What you'll see in this half's results is sort of more of the same. Things are continuing along very much as planned and as people were expecting with Pinnacle Parent. People have said to me, "Oh my goodness, the market was down a lot in the last quarter. What does it mean for Pinnacle?" I think you can see that in our numbers. Really nothing has fundamentally changed. Our plans for Horizon 2, the use of the surplus capital that we have, it's being put to very good use. We're growing very strongly.
We have resourced up to make sure that we don't drop the ball either for our established boutiques, which continue to grow very strongly, or for our new ones. We've resourced up to be very robust and to be able to cope with very high levels of growth. That's what we've done. We're very happy with the way things are traveling. You'll see in here, for example, things like three new executives who've come on board. Each of those three we believe are high-quality people. It's a big increase in our executive levels. You'll see this is all about direct to retail Horizon 2 investments in initiatives that we've talked about for quite a while. We're well and truly getting into those now. You really will see the benefits of that over the medium term. Slide seven sets out the more significant components of our results.
I'm starting to run out of time a little bit. I'll just point to a couple of items of recent new information on these slides. I don't think much of this will be new to people. A couple of things I'll just call out from the rest of the presentation and then leave people to read it. We've had some nice ratings upgrades this month. These are very helpful to our retail sales efforts. I see Adrian smiling here. The pressure's on him now to produce all the retail sales. Lonsec upgraded Hyperion Global from investment grade to highly recommended. That is a very unusual two-step jump, which we are delighted with. Lonsec also upgraded Plato Global Income from investment grade to recommended. Zenith upgraded Firetrail's Absolute Return Fund from recommended to highly recommended.
That highly recommended rating now sits very nicely beside the existing highly recommended rating for Firetrail's High Conviction Fund. This is all very helpful as our highly regarded, high-quality retail distribution team goes forth into the market to promote our newer offerings into the retail market, Hyperion Global, Firetrail, et cetera, as well as Antipodes, Plato, and the other Solaris Long Short and the Spheria and the other great range of offerings that we have. Haven't got time to go into flows and so on. Maybe there'll be questions on that. Suffice to say, our retail flows have held up quite nicely. I didn't go into them because they were already announced in January. The retail net flows were AUD 1.4 billion for the six months. The month of January was about AUD 90 million, which was actually quite fine for January.
January tends to be a poor month. I'm going to stop rabbiting on now and go to questions. We really wanted to leave plenty of time for people's questions. If the operator can go to questions now, please.
Certainly. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press the pound or hash key. Your first question comes from the line of Tim Lawson from Macquarie. Please ask your question.
Hi, gentlemen. Thanks for taking my question. I was going to ask about the retail flows. Just can you give us a bit more thoughts on the sort of ability to sustain that sort of momentum that you've had across the whole half?
Yeah.
Question just on the level of investment in costs in the Pinnacle Parent. You've called a few things out in regard to the second half, any other items that we think should be sort of varying materially from the sort of run rate we've seen in the first half?
Thanks, Tim. I'll throw to Adrian in a second to talk about retail flows. My little comment is that obviously it's been the big question on everyone's minds about retail flows generally with the pretty vicious drops in the market in sort of the four months to 31st of December. What does that mean for retail flows? I would make the point that we've got, as I mentioned, some great ratings, a whole range of really great offerings to the retail market, and we've got a very strong retail distribution team that we're very proud of. It's very difficult to predict the retail market, I'd say we're pretty well-positioned. I would make the broad comment.
People ask me about flows generally, I throw back to the year before last, because last year was just extraordinary, and I've been saying it's probably unrealistic to assume that the flows of last year, well over AUD 200 million a month in retail and AUD 7.9 billion in total. The previous year, we had AUD 5 billion of total flows, of which about 40%, AUD 160 million a month, was retail. I've always felt pretty confident on average of that over the long term. I'll let Adrian answer the question on retail. Just saying, though, that no one really knows what lies ahead for the retail market.
Thanks for the question, Tim. Maybe if I just give one a brief view on what's happened just recently, because it does set the scene for where I think retail flows are going. As Ian mentioned, obviously, we can't really forecast strongly where we're heading. However, I will state that we didn't expect the Royal Commission to have that much of an impact on flows from our perspective because of the distribution strategy we had in the retail market, in that it was heavily focused on independents and the larger practices. There's no doubt there will be perhaps some flowing for the industry as clients digest the path forward. Probably the greater impact we suspected might be around the volatility in markets than just investor sentiment. To this date, we haven't really seen that flow through very strongly in our flows.
Even in speaking with the clients, in many cases, they've actually found it a good opportunity to go and speak to their clients about how they should alter or reconstruct their portfolio. It is a bit of a wait and watch with both of those, I guess, key maybe head or slight headwinds in regards to clients. What I will add is that, you've seen it with the likes of Hub, Netwealth, those listed firms. We continue to see a lot of rotation of portfolios out of other platforms or incumbent distributors into the newer age platforms. We are a net beneficiary of that. We are picking up managed account business. Not all clients retain the same managers whenever they move from the incumbent platforms to the newer age platforms.
Often we pick up new business, be it Firetrail, Resolution Capital, Antipodes Partners, et cetera, because of the ratings and because of the quality of the managers. I think that is a bit of a tailwind for us in that regard. Overall, Ian mentioned, if you look at Horizon 2, and there is a slide in the pack, which is on slide 27, which details the growth opportunities, particularly within our affiliates. We do have a number of managers who will be, I guess you would call coming on more major stream, such as Hyperion Global. We are seeing quite strong interest there.
Yeah. Plato Global Income a little bit earlier, now that we have the ratings for approved lists, et cetera, the likes of Spheria Opportunities, as well as obviously the existing strategies which still attract strong flows such as Antipodes Partners, Firetrail, and Solaris Long Short, and I already mentioned Resolution Capital. Look, I think broadly we're pretty well-positioned. We're making sure clients are absolutely front and center for our business. We are making sure we engage them regularly rather than just go and talk about the product. We're spending a lot of time with them. It's a long-winded answer, Tim, I think the outlook looks okay. Flows pretty good for us.
Your question on costs in Pinnacle Parent. You'll see that our salaries costs are up substantially in Pinnacle Parent. That is a very deliberate and considered thing. I've been talking to people for a long time about how we're ramping up our resourcing in Pinnacle Parent. Both distribution and all of the other support resourcing have increased. Risk and compliance has increased, our middle office, et cetera. The question that should be asked, is this just sort of undisciplined adding to the numbers of people? The answer is no. Tim, people have been asking me for a long time, "Can Pinnacle really continue to grow at these extraordinary rates, taking on new affiliates, new strategies in existing affiliates, et cetera, without dropping the ball?" I've said, "Absolutely, it is going to require extra resourcing. We need to do that carefully and keep our quality high."
I believe we've done that. This is all about investing for ongoing growth. It's salaries. There are a few one-off things, like our property cost was substantially higher. We had done a deal to take on a new small cap affiliate that we were taking over. We housed those people for a few months. The group we were taking it over from reneged on that deal, and the small cap affiliate didn't proceed, so we lost that bit of money. Also, we've taken significant extra space for Firetrail and Longwave and so on. We wear those costs. This is all Horizon 2 until an affiliate is profitable. Firetrail has now become profitable and will start paying its rent from the 1st of January, but we wore those costs in the last half.
Again, that's just costs of getting ready for new affiliates. There's also some professional fees, which was recruitment costs. We've done quite a lot of recruitment. We try to do it without spending much, but sometimes to get high-quality people, you need to pay recruitment costs. There's a slide in here with the brief CVs of our three new executives. Chelsea Wu and Chris Meyer's been with us for over a year now, but those three people are all very significant executive hires, and they are all related to retail, including direct to retail, including exchange-traded funds and LICs and so on. The Pinnacle parent costs are about being ready for ongoing growth in a robust way, which is why we've added to risk and compliance and so on. Does that answer your question?
Yeah, that's great. Thank you.
Once again, ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad and wait for your name to be announced. Your next question comes from the line of Liam Cummins from Wilsons. Please ask your question.
Hi, gentlemen. Maybe just following on from Tim's question, can we get perhaps a feel of the mix in increase of cost between revenue and non-revenue generating staff? I guess within the non-revenue generating staff, how scalable that is from where we are now?
Liam, I would say, the vast majority of the people we take on are aimed at revenue generating or pretty directly supporting revenue generating. Sometimes it'll generate revenue in three years' time as opposed to now. If you look at the increases in people, it's roughly half and half distribution versus non-distribution. Distribution obviously are directly revenue generating. In the non-distribution areas, though, if you take our middle office, for example, which has gone from 6-1 0 people, including a lot of automation and re-engineering and so on, that is all about coping with a large increase in the number of funds that we're running. It's increased complexity as we do more offshore-based funds, Cayman, Undertakings for Collective Investment in Transferable Securities, and so on.
We have to make sure that as Antipodes moves into new areas, new affiliates are in derivative heavy areas and so on, we need to be ahead of the game. When we talk about Horizon 2, we are very serious about there is a business plan behind anything we do in Horizon 2, and that needs to look at substantial revenue within a few years.
Liam, just to reflect a little bit on the point that, when we make these investments in these people, compliance and IMS, then that increases the attraction of Pinnacle to new boutiques in the medium term. We've talked in the past about the attraction of distribution, they also want these other services which enable them to focus on what they're good at, which is investing.
Yeah.
It also allows us, as well, Liam, having high competency in the non-distribution areas such as operations, compliance, et cetera. It enables the distribution people to provide a much richer experience for the client. At the end of the day, for us, it's about clients and affiliates. They're absolutely the backbone and critical. We don't try and look at it revenue, non-revenue. We look at it, how can we provide a greater experience for our investors?
Just to add to the point that Alan made, there's no question. People see the quality of our distribution, it's on display. What's not so well-recognized is the quality of our other support services. The due diligence reviews that we're subjected to weekly, they are so much more intense and so much more demanding than they ever were in the past. It's a huge competitive advantage for us and a great benefit for our affiliates having high quality there. Even if you take something like risk and compliance, which we've doubled the cost of, you might say that's non-revenue producing, but the robustness that that adds in an environment where all the spoils are going to go to the top quality fund managers. Everyone else can go and please themselves. You fail due diligence and [crosstalk].
It's binary.
Yeah, absolutely.
Yeah.
That's what we've been doing.
Great. Maybe on the distribution side, presumably that's pretty much all retail-focused?
Yes in the half because we'd resourced up in institutional. Well, it's the full period coming on with our offshore people. We're probably going to add another person in London.
It's a bit of a mix. It's marketing, it's offshore slightly, a little bit extra resourcing for retail and also been rounding out the domestic institutional team who also do some offshore reach as well. It is across the full spectrum. We're very cognizant that we have grown quickly, and we expect to continue to grow strongly. We need to meet the needs of the affiliates and also the clients. If you look at retail as an example, we've grown quickly to nearly AUD nine and a half billion now. That's a broad range of advisors and also direct investors. We want to make sure we continue to exceed that service level rather than fall back to any complacency.
Got you. Maybe one final one from me before I jump back in the queue. Just remiss of me not to ask about the insto flow outlook for the second half, given where we are currently with Firetrail.
Yeah. Insto flows are just very difficult to predict. The reality is that during the half, we had AUD 5 billion of net inflows for the half and over AUD 3 billion of that was Firetrail. There was AUD 1.1 billion, something like that, of Antipodes, not a lot other than that in this particular half. Our affiliates, insto is very lumpy and any particular affiliate, their insto sales sort of come and go a bit. We had a little bit of outflow in Hyperion, a few hundred million, which we can talk about is actually a positive for us. Looking forward, we do have pipeline, there's no question. We have institutional pipeline. When that arrives, who knows?
Yep.
I really don't want people hung up on this month and next month, what the insto flows are going to be, because you have a period [crosstalk].
It averages out over time.
Yeah, it is.
Yeah.
Who knows? I'll tell you, I have guided the AUD 7.9 billion of net inflows of last year. That was an extraordinary number, and I feel a lot more comfortable with the AUD 5 billion in total of the previous year. They're still very large numbers.
Yeah.
Certainly have an ongoing pipeline for insto.
Great. Can I maybe ask where we are in Hyperion Global as well? How close that is to becoming fully launched?
As far as I'm concerned, it's fully launched in retail. The rating upgrades will be helpful, but again, I'll let Adrian speak to it. You know the process there. It takes time to get onto all the various slots and to get your ratings and so on. I believe Hyperion Global is full on in retail. In insto, it's been slow going in the Aussie insto market. My observation is none of the Aussie-based global equities managers have had much success in the Aussie insto market. It's been more offshore, and we are certainly putting in significant effort offshore for Hyperion Global as well. We've got some early Aussie insto in Hyperion Global, and I think there will be more, but it's taking time. It'll be in the retail market, Adrian, that it'll be full bore.
Yeah. We've done the job over the last six months, maybe a little bit longer, of getting on all the platforms. There's still a few platform slots that still need to be completed, but most of the major ones are actually done. We were lacking because of the research ratings in regards to getting on approved lists around professional indemnity cover, et cetera. We're now through that. Really, if you think about the analogy, the tickets to the game or we have the tickets, now it's all down to execution. We have a plan, and we will be rolling that out over the next couple of years. We need to get momentum. As you know, if you look at our flows, it's very much about getting breadth, being consistent, engaging investors, and getting momentum in flows.
We have a number of strategies to achieve that and hopefully we can do a very good job this second half and then into the next FY.
You see we have updated performance tables at the back to the 31st of January. Hyperion Global's performance has been extraordinarily good. Even during a period where some people say to me, "Oh, they're a growth manager, they've got lots of U.S. tech stocks and so on," which did badly during the last quarter. Hyperion through this period have done very well. I get slightly annoyed at people say, "Oh, Magellan's performed so well." Well, have a look at Hyperion Global's performance numbers.
Great. That's it from me. Thanks, guys.
As a final reminder, ladies and gentlemen, to ask a question, please press star one on your telephone. Your next question comes from the line of Nick Burmester from Ord Minnett. Please ask your question.
Morning, gentlemen. Just a quick question, more on the outlook for growth into different asset classes or markets and different strategies. You've done, obviously, the credit acquisitions. I note Two Trees had a big increase in AUM, which is pretty interesting given it's a global macro play. Yeah, how are you feeling about all the non-long only equity or long-short equity space?
Yeah. Great question, Nick. Look, it's an area where managers domestically have traditionally struggled, on average. As we all know, the market is very long equity beta. Things like global macro or Absolute Return do take a much bigger job to do on education for clients. I feel pretty comfortable with where we sit, actually. If you look at Two Trees, they did have some performance challenges, but they've certainly well and truly bounced back, and bounced back strongly relative to their peers. It's early days in regards to flow, but I think relative positioning versus peers is very strong. Firetrail is probably in that same bucket, to be frank. Although they have highly recommended, and there's been very strong interest for their Absolute Return strategy. We continue to see that. Antipodes, if you look at the global strategy, it is long-short.
We're definitely getting used for global equities, but we're very clear with clients. We have a significant underweight to U.S. We have a considerable short position. Should markets sell off, Antipodes is very well positioned to be an anchor for global equity portfolios. Obviously we have Metrics Credit, who we will be rolling out an unlisted fund for their capabilities, so it'll have listed and unlisted. I feel pretty excited, to be honest, in the fact that we'll be able to take clients a broad range of high-quality capabilities that can fit the need that they're probably perhaps a little bit underrepresented.
Yeah. Nick, I think people are aware that it's been a deliberate strategy of Pinnacle's. In the early days, we had a lot of Aussie equities. We deliberately added global equities, global REITs, et cetera. Now we've moved very consciously into the Two Trees and Metrics Credit and Omega. Much less equity. We've got a much more diversified overall portfolio. We've also signaled that we will take some baby steps into some other alternative areas. That's all on the agenda. As Adrian said, this is very much Horizon 2 stuff that will take some time, but we feel good about how it's going and we've definitely put in the effort to make sure we've had high quality, including high-quality support for the Two Trees and the Metrics and so on. We're taking Metrics to the market.
If you look at Metrics as an example, they did not have a retail brand. Their net fund transfers is now north of AUD 750 million, and there's very strong interest in the Metrics Income Opportunities Trust that we're bringing to market. There's clearly a big gap in the marketplace for those type of offerings.
Plus, we'll keep selling Metrics in the insto market. Metrics are broadening their product offerings for both the insto and the retail market, moving into higher yield areas where obviously the revenue, the margins for Metrics are higher than their earlier Metrics Credit Partners Diversified Australian Senior Loan Fund. That's all happening, Nick.
All right. Thanks, guys.
Your next question comes from the line of Scott Murdoch from Morgans Financial. Please ask your question.
Morning, guys. Just a couple of questions at the affiliate level, if I can. Just obviously second half performance fees are pretty reliant on the Palisade contribution. Just any update on how Palisade's tracking compared to that performance fee expectation of prior periods?
Palisade's doing just fine. Doing what it always does. I think we've got some performance numbers there for Palisade to the 31st of January. Of course, those don't have the valuation uplifts that can become later in the year. No, we're happy with the way Palisade's traveling performance-wise, and they continue to just fairly slowly keep growing their fund and finding new assets.
Okay. Thanks, Ian Macoun.
Yeah.
Thanks, Ian. Just interested in your comment on Hyperion about the outflow there and it being a positive, just whilst you're on that, any other affiliates that you've seen a net outflow in this period, any comment around that if it's possible?
Yeah. You know that for Hyperion's Aussie equities offerings, they are hard closed in the institutional market. In fact, they ask people to take their distributions in cash. That means that over time there should be some probably reasonably modest outflows from instos as things change. You get mergers and circumstances change for them. That tends to release some capacity that can then be sold into the retail market. Hyperion's Aussie equities products that were hard closed and the large ones soft closed in the retail market are now quietly open again. We can redeploy capacity at a higher speed.
Okay, thank you. Just any other affiliates, has there been any other affiliates where we've seen net outflows over the period?
I don't believe so. I'll just get my table that has them all.
You might have the lumpy scenarios of some institutional outflow, but nothing systemic there. On the retail perspective, we had had some outflow in Hyperion on their small company side of things, but that was due to it being hard closed and it's now been reopened. We've started to see that subside, and more recently actually had net inflow on it.
One of our affiliates had some very modest net outflows that was just due to a particular client's circumstances, but nothing substantial.
Yep, nothing systemic. Okay, thank you. That's all from me. Cheers.
We have no further questions from the telephone line. I would now like to hand the conference back to your presenters for any closing remarks. Thank you. Please continue.
I guess if there are no more questions, we can close off. We have a lot of one-on-one meetings arranged with fund managers. If anyone has further questions, please just be in touch with us. We like to make sure that shareholders are pretty well-informed. This presentation has more detail in it to enable people to peruse it at their leisure. Look, the overall message from us is that it's very much business as usual. The growth prospects that we've been talking about for quite some time remain on foot. We're getting on with things. We could have done without the market downturn in that last quarter, who knows what lies ahead with markets. Whatever they might be, we think we're very well-positioned with the quality of our affiliates, the quality of our sales force, and all of our back office and so on.
I'll say thanks very much to everyone for participating, we'll probably see most of you in the next little while.
Ladies and gentlemen, that does conclude our conference for today. Thank you for your attendance. You may all disconnect.