The Pinnacle Investment Management Group Ltd (ASX: PNI) share price is up 5% after reporting its FY26 result.
Pinnacle is involved in the funds management industry, taking minority stakes in funds management businesses (affiliates) and helping them grow.
FY26 result
Here are some of the highlights from the 12 months to 30 June 2026:
- Affiliate funds under management (FUM) grew 27.9% to $229.4 billion (or rose 25.2% excluding acquired FUM)
- Net inflows were $33.4 billion
- Performance fees after tax from 12 affiliates boosted net profit by $35.6 million
- Pinnacle’s share of affiliate net profit grew 5% to $136 million
- Underlying net profit rose 21% to $114.2 million
- Statutory net profit increased 31% to $134.4 million
- Final dividend of $0.31 per share
- Total dividend per share of $0.60, flat compared to FY25
What happened?
Pinnacle reported that the difference between the underlying net profit and statutory net profit was a one-off accounting gain on the acquisition of Pacific Asset Management (PAM) and net gains/losses on principal investments.
The company saw aggregate affiliate FUM rise 13.3% from 31 December 2025, or a 10.9% rise excluding FUM acquired in the second half as a result of the Advantage Partners transaction.
Pinnacle noted that during the year, retail FUM rose by 27.9% over the year to $50.7 billion and international FUM rose 45.6% to $51.4 billion (or 36.2% excluding acquired FUM).
The funds management business noted ongoing continuing medium-term outperformance across many affiliates – 81% of 5-year affiliate strategies have outperformed their respective benchmarks over the five years to 30 June 2026, which helps underpin performance fee contributions.
Pinnacle also highlighted its move to 100% ownership of Pacific Asset Management (PAM) from 24 April 2026.
Outlook for the Pinnacle share price
The company announced that PAM, fully owned by Pinnacle, has entered into an agreement to acquire 100% of Asset Value Investors (AVI).
AVI manages a range of listed investment trusts, UCITS funds and institutional mandates. Pinnacle thinks this deal will unlock further growth in global distribution to support geographic diversification, affiliate origination and product innovation.
I’m a happy shareholder based on this report. The earnings per share (EPS) continues to improve at a good pace and this is helping drive the underlying value of Pinnacle shares. Its expanding FUM can help increase underlying earnings (excluding performance fees).
After rising 23% since 30 July 2026, I don’t think the Pinnacle share price is as good value today, but I would be happy to buy shares during the next market decline.
