Pinnacle Investment Management Group (PNI) H2 2024 earnings summary

Executive summary

• Achieved record funds under management (FUM) of AUD 110.1 billion at June 30, 2024, up 20% year-over-year, driven by private markets and international expansion.

• Net profit after tax (NPAT) for FY 2024 was AUD 90.4 million, up 18% year-over-year; earnings per share (EPS) rose 17% to AUD 0.455.

• 85% of Affiliate strategies with 5+ year track records outperformed benchmarks over five years.

• Horizon 2 investment spend peaked and then declined as new initiatives began generating revenue.

• Pinnacle and Affiliates won multiple industry awards, highlighting investment excellence.

Financial highlights

• Aggregate affiliate FUM at June 30, 2024, was AUD 110.1 billion, up AUD 18.2 billion (20%) year-over-year; retail FUM up 27% to AUD 28.8 billion.

• Aggregate affiliate revenue at 100% was AUD 663.4 million, up 30%; base fees were AUD 553.6 million (up 22%), and performance fees AUD 109.8 million (up 89%).

• Pinnacle's share of performance fees after tax was AUD 31.2 million, up 112% from FY 2023.

• Total net inflows for FY 2024 were AUD 9.9 billion, with 70% from international investors and 57% into private markets.

• Net assets increased 8% to AUD 455.9 million; net cash and principal investments after debt facility at AUD 86.2 million.

Outlook and guidance

• Significant unutilized capacity in existing strategies, with over AUD 300 billion estimated runway.

• Expectation of continued operating margin expansion as Horizon 2 investments mature and costs decline.

• Ongoing focus on international expansion, especially in the U.K., Europe, Middle East, and Canada.

• Institutional investors remain underweight in public equities; private credit and real assets expected to drive future inflows.

• Retail and wholesale flows expected to benefit from improving sentiment and structural tailwinds in private credit and fixed income.