PNI -2.69%: announced their half-year results after market yesterday, trading to 4-week lows during the session on some weak numbers. While revenue was marginally lower, profit fell 24% to $30.5m on lower performance fees and investment in growth initiatives. An increase in the average base fee margin to 53.5bps was positive, however, the company struggled to generate business and saw net outflows of $1.5b. We continue to like the company over the medium term, positive on its diversified income streams and performance fee upside, however, these results justify our near-term bearishness with the need to see a turnaround in FUM flows and benefits from their investment in the business.
MM is neutral to bearish PNI
Add To Hit List
