Pinnacle posts 49% increase in full-year net profit in FY25
Make us a preferred source
Make us a preferred source on Google
The news: Pinnacle Investment Management has recorded a 49% increase in full-year net profit after tax to $134.4 million, from $90.4 million last year. This was in line with average estimates of $134.10 million, according to Visible Alpha data.
The numbers: Pinnacle declared a final dividend of 27 cents per share, taking total dividends to 60 cents per share. This is a 43% increase from last year's payout of 42 cents, and above consensus forecasts of 57 cents per share.
The dividends are franked at 88% and will be paid to shareholders recorded on the register on 2 September.
Pinnacle said $46.6 million of its NPAT were attributed to performance fees earned by its 12 affiliates. This is up 49% on the previous year.
By 30 June, the affiliates' aggregate funds under management (FUM) grew 63% to $179.4 billion, compared to the previous year's FUM of $110.1 million.
The context: Pinnacle's managing director Ian Macoun said that the company "remains attracted by the growth in private markets and see opportunity to further broaden this capability".
"Equally, we are clear as to the value and indeed necessity of high quality, active investment management in the public markets," he said.
He flagged that Pinnacle added three further affiliates — VSS, Life Cycle Investment Partners and Pacific Asset Management — to its investment platform during the year in pursuit of its strategy of being "more relevant to more clients, in more countries, more often".
What they said: "We remind shareholders that our earnings and net inflows can moderate during times of market dislocation," Macoun said.
The source: ASX
