Company Interview / Pinnacle's global push pays off

Key points:

Pinnacle Investment Management (ASX:PNI) posts 49% profit growth and expands global reach Strong investment performance and performance fees cited as key contributors Offshore affiliates, particularly in the UK, show substantial inflows Focus on AI-driven research, private markets access, and selective M&A activity

Pinnacle Investment Management (ASX:PNI) has reported a 49% increase in full-year profit, reaching $134.4 million, and a 15% rise in total funds under management to over $179 billion. Ian Macoun attributes this success to strong investment performance and substantial performance fees, highlighting the progress made on global expansion. Now, $48 billion of Pinnacle's funds are managed by offshore affiliates, including significant inflows to UK-based Life Cycle Investment Partners and Pacific Asset Management.

Macoun points to accelerating overseas activities and a growing presence as an exporter of Australian fund management services. He states that while global markets have faced volatility, Pinnacle’s strong affiliate performance has driven growth. The company has also focused on opening private markets to retail investors, supporting platforms such as Fincap and expanding offerings in private equity, infrastructure, and other alternatives.

Artificial intelligence forms a core pillar in Pinnacle's future strategy, with specialist teams working to gain investment insights and improve operational efficiency. Macoun notes the company's solid cash position enables continued investment in technology and expansion. He anticipates more M&A activity in the sector but prefers building capabilities internally, and expresses confidence in ongoing growth for both profits and dividends.