Pinnacle Investment Management Group Limited (ASX: PNI) has delivered an exceptional first half for FY25, reporting a 151% surge in net profit after tax (NPAT) and a record-high interim dividend. The group’s funds under management (FUM) grew significantly, with strong net inflows and increasing contributions from performance fees.
Key Financial Highlights (1H FY25 vs 1H FY24)
- NPAT: $75.7 million (+151%)
- Diluted EPS: 36.7 cents per share (+140%)
- Interim dividend: 33.0 cents per share, franked to 72% (+112%)
- Performance fee contribution: $36.4 million (vs. $12.3 million)
- Pinnacle’s share of Affiliates’ NPAT: $74.3 million (+99%)
FUM Growth & Net Inflows
- Total FUM: $155.4 billion (+41.1% since June 2024)
- Retail FUM: $35.4 billion (+22.9% since June 2024)
- International FUM: $44.8 billion (+143.5% since June 2024)
- Net Inflows: $6.7 billion, with contributions from:
- Domestic retail: $3.7 billion
- Domestic institutional: $2.2 billion
- Offshore: $0.8 billion
Strategic Developments & Growth Initiatives
- Global Expansion: Pinnacle expanded its Horizon 2 and 3 growth initiatives, launching Life Cycle Investment Partners in London and acquiring stakes in Pacific Asset Management (London) and VSS (New York). These moves highlight Pinnacle’s ambitions to scale its business internationally.
- Performance Fees Driving Earnings: 28 Pinnacle-affiliated strategies now have the potential to generate meaningful performance fees, with 20 of them contributing in 1H FY25. 82% of 5-year Affiliate strategies have outperformed their benchmarks, reinforcing Pinnacle’s ability to sustain long-term alpha generation.
- Capital Raising: Pinnacle raised additional capital in November 2024 to support acquisitions, seed new strategies, and expand existing affiliates. The group’s cash and principal investments (PI) totaled $440.4 million at December 31, 2024.
- Strong Balance Sheet: Pinnacle maintains a net cash and PI position of $340.4 million, ensuring financial flexibility for future growth.
Leadership Commentary
Alan Watson, Pinnacle Chair:
“Our recent acquisitions demonstrate Pinnacle’s ability to export its investment model into larger international markets. We remain grateful for shareholder support, which has enabled these growth initiatives.”
Ian Macoun, Pinnacle Managing Director:
“Performance fees are now a core part of Pinnacle’s earnings. With 28 strategies representing over $44 billion in FUM, we expect performance fees to remain a significant driver of profitability. While equity market appetite remains muted, we are seeing strong inflows into fixed income, credit, and private markets.”
Outlook: Positioned for Continued Growth
- Diversified earnings base with increasing performance fee contributions
- Expanding global footprint with recent acquisitions and partnerships
- Strong net inflows and FUM growth providing a solid foundation for future earnings
- Well-capitalised balance sheet supporting further expansion opportunities
With a record interim dividend and strong financial momentum, Pinnacle remains well-positioned for sustained growth in both domestic and international markets.
