“Pinnacle Investment Management Group (PNI) grew funds under management (FUM) by approximately 7.4% to $118.3 billion (ex-acquired FUM) for the quarter, driven by investment returns (+5.8%) and supported by solid net inflows (+1.6%),” Raymond said.
“Retail channel net inflows have picked up slightly (+$1.6 billion for the quarter).
“Insto flows at $0.2 billion were subdued, however PNI remains confident in the pipeline.
“Offshore growth and executing on ‘Horizon 3’ opportunities is a clear focus.
“The building blocks look in place to deliver another structural earnings step-up over the medium term (to financial year (FY) 2027), with acquisitions additive if delivered.
“PNI’s near-term valuation (approximately 36x FY 2025 PE) sees the stock susceptible to short-term volatility.
“However, PNI has structural growth drivers, and we see the medium-term (FY2025-2027) earnings step-up is well supported by a return to improved flows; significant operating leverage on improved FUM; leveraging the recent investment spend; and the addition of new managers to come.
“We maintain our Add for PNI,” Raymond said.
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