Pinnacle Investment Management Group (PNI) H1 2025 earnings summary

Executive summary

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

• Funds under management (FUM) reached $155.4 billion, up 41% from June 2024, with $6.7 billion in net inflows and $28 billion from acquisitions.

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

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

• International expansion gaining momentum, with 29% of FUM now 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.

• Principal investments totaled $350 million at 31 December 2024, with net cash (after debt) at $340.4 million.

• Interim dividend of $0.33 per share, up 112% year-over-year.

• Retail FUM up 23% to $35.4 billion.

Outlook and guidance

• Multiple tailwinds and a strong pipeline of opportunities across private markets, institutional, retail, and international channels 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.

• Expectation of higher and more rapid revenue growth than cost growth in the medium term.