The Pinnacle Investment Management Group Ltd (ASX: PNI) share price is up more than 3% after the company reported its FY26 half-year result.
Pinnacle is an investment business that owns stakes in funds management businesses (affiliates) and helps them grow by allowing them to focus on investing, while Pinnacle takes care of a number of back-end services.
Pinnacle FY26 half-year result
Here are some of the highlights from the report for the six months to 31 December 2025:
- Aggregate affiliates’ funds under management (FUM) reached $202.5 billion, up 13% from June 2025
- Record net inflows of $17.2 billion
- Performance fees (after tax) earned by eight pinnacle affiliates came to $13.4 million, down $23 million
- Pinnacle share of affiliate net profit down 7% to $69.4 million, but up 52% excluding performance fees
- Reported net profit down 11% to $75.7 million, but up 37% excluding performance fees
- Interim dividend per share down 12% to $0.29 per share
What happened?
The company revealed that there were positive net inflows across its three different areas. Domestic retail net inflows were $6.8 billion, domestic institutional net inflows were $7 billion and international net inflows were $3.4 billion.
The business said that while the level of performance fees has reduced, there is continued medium-term outperformance across many affiliates, with 86% of 5-year affiliate strategies showing they had outperformed against their respective benchmarks over the five years to 31 December 2025.
Management commentary
The Pinnacle Chair Alan Watson said:
Our broad platform of Affiliates and strategies, together with increasing presence in much larger addressable end markets, has underpinned a strong net flow outcome for the half, which will drive revenue growth in future periods.
It is pleasing that all existing Affiliates are profitable with revenues and core earnings continuing to build. Finally, we are delighted to welcome our nineteenth Affiliate, Advantage Partners of Japan, and today announce further investment into Pacific Asset Management.
We are confident that both of these growth initiatives will be to the benefit of our clients, people and shareholders.
Final thoughts on the Pinnacle share price
While it’s disappointing to see net profit reduce because of reduced performance fees, the underlying earnings that are connected to FUM and management fees is growing, which bodes well for future years.
I’m positive on the company’s future thanks to ongoing strong net inflows, long-term outperformance and the reduced Pinnacle share price (down 29% in the past year). I think it’s one of the more appealing ASX growth shares and ASX dividend shares to keep an eye on, particularly at the current valuation.
