PNI - Pinnacle Investment Management Group

Dona Ferentes said:

Has more than doubled in the last 12 months. Probably some fund manager selling down, after booking the CY numbers?

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Only recently PNI raised an SPP selling stocks at around $16.14 and the prices did not dive down then.
The stocks of investment companies unless poorly managed like MFG, should not dive south so massively .

I haven't checked other investment managers, but I'd expect they wouldn't be having a good day either. Its one of the sectors that will be hit when there is fear in the market, all the jittery investors pulling their money out of funds.

KH

one manager still pulling in the money:

Review of operations
Profit attributable to shareholders for the half year was $30.2 million, compared with $30.5 million (a decrease of 1%) for the prior corresponding period. This translated to Earnings per Share of 15.4c (basic) and 15.3c (fully diluted), compared with 15.7c (basic) and 15.6c (fully diluted) for the PCP, representing decreases of 2% in basic earnings per share and 2% on a fully diluted basis. While income tax was paid at the Affiliate level, there was no income tax expense at the Group level for both the half year and the prior corresponding period, hence profit before tax and profit after tax are the same.

A maintained, fully franked interim dividend of 15.6 cents has been declared and will be payable on 22 March 2024 to shareholders registered on the record date of 8 March 2024. In addition, during the half year, dividends totalling $41.0 million have been paid to shareholders by the Company, being the FY23 final dividend of 20.4c per share.

Funds under management and net inflows
Aggregate Affiliates’ funds under management (at 100%) increased by 9% during the half year from $91.9 billion at 30 June 2023 to $100.1 billion at 31 December 2023. Closing FUM was 8% higher than average FUM over the half year, with much of the increase attributable to net inflows and market movements occurring late in the reporting period and thus having little earnings impact during the half year.

Total net inflows for the half year were $4.5 billion (retail net inflows were $1.8 billion, international net inflows were $3.1 billion, whilst domestic institutional net outflows were $0.4 billion), with market movements and investment performance contributing positive $3.7 billion over the half year (as noted above, much of this occurred late in the reporting period). With conditions for raising new funds continuing to be challenging during the half year, we believe that this represents a creditable outcome and demonstrates again the strength of our distribution capability. In addition, the diversification of our platform of Affiliates across a wide range of asset classes and investment styles has served us well as investors’ needs have changed.

Doesn’t seem to have gained much coverage here but as a trend follower, PNI has shot the lights out this year. Personally, I’m up 64% and continue to hold with wide stops in place in this current bull market environment.
PNI, lies in the Financial Sector which only trails Information Technology as one of the best performers over the last year.
It’s just starting to go through some consolidation now and we’ll probably see a static period of growth during the next few months subject to any positive/negative news (fundamentals).

Six month daily chart follows.

Held

PNI update …

This company continues to shine with its upwards momentum. I thought it might stall a little during Sept/Oct but not to be so far. Now above the $19 level and moving …

1yr chart ->

Dona Ferentes said:

one manager still pulling in the money:

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Placement well received, now $22.13... SPP on its way



Completion of its A$400 million fully underwritten institutional placement of approximately 19.7 million new fully paid ordinary shares, equivalent to approximately 9.7% of existing ordinary shares on issue in Pinnacle. The Placement was completed with strong support from institutional investors, including both existing and new shareholders. The Placement was completed at a price of $20.30 per New Share.

As Pinnacle announced on Wed 20 November 2024, the proceeds received from the Placement will be used to:
• fund Pinnacle’s strategic investments in VSS Capital and Pacific Asset Management;
• seed new strategies for existing affiliates, including Life Cycle and other affiliates (which is expected to be continually recycled) as well as to acquire additional equity in existing affiliates; and
• support investment in additional Horizon 2 and Horizon 3 growth initiatives (which, as has historically been the case, will be invested in affiliate funds until deployed and is expected to return above cash rate yields).
.
...Agreement to acquire strategic interests in two high quality international asset management firms for combined consideration of A$142.8 million. The strategic interests comprise:
• US$60.5 million for a 22.5% equity stake in VSS Holdings LLC. VSS is a New York-headquartered private markets investment management firm specialising in structured capital.
• £25.75 million for a 25% equity stake in Pacific Asset Management LLP, a London-based asset management platform that provides technology-enabled multi-asset portfolio solutions, along with support and distribution services for high-quality boutique asset manager

Dona Ferentes said:

A$400 million placement ... completed at a price of $20.30 per New Share.

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no looking back ....and SPP likely to be keenly sought

PNI latest ->

Held

"Since founding the business in 2006, Pinnacle has seeded more than 10 different managers that have gone on to run many billions in assets. The philosophy of leaving the managers with the majority of the equity upside, and actively facilitating recycling of shares from founders to the wider team, mitigates the classic boutique disease whereby managers tend to be single generational businesses that fade with founders.

"The Aussie funds management graveyard is littered with the skeletons of firms that did not distribute equity across the team and failed as a consequence to expand beyond their original leaders....

- Christopher Joye. (PNI acquired a stake in the company he works for, Coolabah, in December 2019. )


By early 2020, Pinnacle had $53 billion in funds under management via minority stakes in just over a dozen asset managers, including well-known names like Hyperion, Plato, Resolution Capital, Antipodes and Metrics.

Fast forward to today, and that number has soared to over $155 billion across 18 managers, $45 billion of which was sourced from offshore investors and another $35 billion from domestic retail punters. This has powered profits, which climbed to $76 million in the first half of the 2025 financial year compared to just $18 million in the same 2020 period.