Pinnacle Investment Management Group (PNI) H1 2025 earnings summary

Executive summary

• Net profit after tax for the half year reached $75.7 million, up 151% year-over-year, with EPS up 140%–140.5% and interim dividend up 112%.

• Funds under management (FUM) rose 41% to $155.4 billion, driven by $6.7 billion in net inflows, $28 billion from acquisitions, and positive market movements.

• Strategic acquisitions in the UK and US, including Pacific Asset Management and VSS, expanded the global affiliate base and diversified earnings streams.

• 82% of affiliate strategies with 5+ year track records outperformed benchmarks over five years.

• International expansion gaining momentum, with 29% of FUM from clients outside Australia and $45 billion FUM across 40+ countries.

Financial highlights

• Aggregate affiliate revenue was $454.5 million, up 54% year-over-year; base fees up 35%.

• Performance fees contributed $36.4 million post-tax to NPAT, up from $12.3 million.

• Interim dividend of 33.0c per share, up 112%, with 72% franked.

• Principal investments totaled $350 million at 31 December 2024, up from $153.7 million at 30 June 2024.

• Net tangible asset backing per ordinary security rose to $4.09 from $2.05 year-over-year.

Outlook and guidance

• Multiple tailwinds and a strong pipeline of opportunities across institutional, retail, and international markets expected to support continued growth into H2 FY2025 and FY2026.

• Ongoing international expansion with further investments and distribution build-out planned, especially in the UK and Europe.

• Horizon 2 and 3 initiatives and product innovation expected to drive further growth.

• Management remains confident in medium-term value despite macroeconomic and geopolitical uncertainties.