Rising Costs and Global Risks Challenge Pinnacle’s Growth Momentum

Strong Financial Performance

Pinnacle Investment Management Group Limited (ASX – PNI) has reported a standout financial year for FY2025, with net profit after tax attributable to shareholders soaring 49% to $134.4 million. Diluted earnings per share rose 37% to 62.4 cents, reflecting the company’s ability to translate growth in funds under management into shareholder returns. The board declared a final dividend of 27 cents per share, franked to 88%, bringing total dividends for the year to 60 cents, a 43% increase from FY2024.

Robust Growth in Funds Under Management

The firm’s aggregate affiliates’ funds under management (FUM) reached a record $179.4 billion at 30 June 2025, marking a 63% increase year-on-year. This growth was fueled by $23.1 billion in net inflows and strong market performance. Notably, international FUM surged 180% to $51.4 billion, underscoring Pinnacle’s successful expansion into global markets. Retail FUM also grew significantly, up 38% to $39.7 billion, highlighting broad-based investor demand.

Performance Fees and Affiliate Contributions

Performance fees earned by Pinnacle’s 12 affiliates contributed $46.6 million to NPAT, up 49% from the prior year. The company now boasts 31 strategies capable of generating significant performance fees, representing $50.4 billion or 28% of total FUM. Impressively, 91% of affiliate strategies with a five-year track record have outperformed their benchmarks, providing a strong foundation for ongoing fee income and growth.

Strategic International Expansion and Diversification

FY2025 saw Pinnacle welcome three new internationally based affiliates; Life Cycle Investment Partners in the UK, Pacific Asset Management (PAM), and VSS in the US; further diversifying its platform across asset classes and geographies. These additions complement Pinnacle’s existing affiliates and support its strategy to be “more relevant to more clients, in more countries, more often.” The company also invested in Horizon 2 and Horizon 3 growth initiatives, including acquisitions and new strategies, which while moderating short-term earnings, are expected to drive long-term value.

Balance Sheet Strength and Outlook

Pinnacle’s balance sheet remains robust, with cash and principal investments totaling $463.5 million, supported by a fully drawn $100 million debt facility. The company’s leadership emphasizes the resilience of its diversified affiliate base and distribution platform amid ongoing global economic uncertainties. Chairman Alan Watson and Managing Director Ian Macoun expressed confidence in Pinnacle’s position to sustain growth and deliver shareholder value in FY2026 and beyond.