Pinnacle Investment Management Group has reported a transformative year for the investment manager, highlighted by its acquisition of the remaining stake in Pacific Asset Management to achieve 100% ownership from 24 April 2026. The move consolidates what was previously an equity accounted investment and represents a significant strategic deepening of the partnership, positioning Pinnacle to capture greater value from PAM’s operations going forward.
Financial performance underpinned the acquisition decision. Reported net profit after tax reached $176.7 million, up 31% from $134.4 million in the prior year, while diluted earnings per share climbed 25% to 78.1 cents. Stripping out the one-off accounting gain from the PAM acquisition and net gains on principal investments, adjusted NPAT grew 21% to $138.0 million, with adjusted diluted EPS rising 15% to 61.0 cents. This underlying performance reflects genuine operational momentum across the group’s diversified affiliate network rather than accounting adjustments alone.
The affiliate ecosystem continues to drive the business. Pinnacle’s share of affiliates’ net profit after tax grew 5% to $136.0 million, demonstrating consistent earnings growth at the operating level. Performance fees contributed $35.6 million to group NPAT during the year, down from $46.6 million in the prior period but still a meaningful earnings stream reflecting strong alpha generation. Notably, 81% of five-year affiliate strategies outperformed their respective benchmarks through 30 June 2026, indicating the diversified platform’s ability to sustain competitive performance across cycles.
Funds under management expanded materially. Aggregate affiliate FUM reached $229.4 billion at year end, up 13.3% from the end of 2025 and 27.9% from June 2025. International FUM showed particular strength, climbing 29.7% to $74.9 billion since the previous year-end, reflecting both organic growth and contributions from the Advantage Partners acquisition completed during the second half. Domestic retail FUM grew 8.7% to $50.7 billion. Net inflows for the full year totalled $33.4 billion, with the second half contributing $16.3 billion, suggesting accelerating momentum into the new financial year.
The board maintained total dividends at 60.0 cents per share, in line with the prior year, with a final distribution of 31.0 cents franked to 65%. The decision reflects confidence in earnings sustainability and growth prospects, though the franking level declined modestly from the prior year’s 79% to 72%, likely reflecting the impact of the PAM acquisition on the group’s tax position. Investors will want to monitor how earnings accretion from PAM’s full-year consolidation flows through to 2027 results, and whether the diversified platform can sustain net inflows momentum in a competitive market. This announcement has been classified as price sensitive by the ASX.
View the full ASX announcement (PDF)
About Pinnacle Investment Management Group Limited (ASX: PNI)
Pinnacle Investment Management Group Limited is a multi-affiliate investment management company headquartered in Sydney, Australia. It provides seed funding, institutional and retail distribution services, and infrastructure support to a network of independent investment boutiques globally. The company facilitates the growth and development of its affiliated investment managers worldwide.
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