PNI +12.21%: Released FY22 earnings today were a whisker below consensus expectations at the profit line, printing $76.4m versus $77.4m expected while the 17.5c dividend was a touch above. They talked to a strong 1H in terms of flows and a weak 2H which is understandable, with Funds Under Management (FUM) down overall for the year, the first time since FY12. The fall in FUM came from market weakness and the mix of FUM inflows actually helped margins given a skew towards retail money. Additionally, Pinnacle managed their cost base well, showing flexibility in volatile markets while still driving investment inflows which led to profit growth of 14% in the year despite the fall in FUM. The company still has around $120m of investible dry powder to continue to expand their footprint while the market only had very tepid growth pencilled in for FY23 – so upgrades here are likely.
MM remains long and bullish PNI in the Emerging Companies Portfolio
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