(Bloomberg) -- Pinnacle Investment Management Group will create a new affiliate that will house former members of Royal London Asset Management’s global equities team, including Peter Rutter, in the next leg of the Australian firm’s international expansion. 

The Sydney-listed money manager announced the new unit on Wednesday following confirmation from London-based Royal London that its equities head Rutter and a number of the global team had quit to set up their own company. Pinnacle will be a minority shareholder and the new staff, who will take a majority stake, will be based in London. 

The move is part of Pinnacle founder and managing director Ian Macoun’s push to expand its multi-affiliate model — where front line portfolio managers and researchers run seperate entities that use Pinnacle’s back office infrastructure and distribution networks. The firm’s also diversified asset classes in recent years away from Australian shares and into private markets such as credit.

Pinnacle Investment shares slipped 1.8% as of 11:02 a.m. in Sydney.

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