Pinnacle Investment Management Group Limited · ASX:PNI
Pinnacle Investment Management — FY2021 Earnings Presentation
79 slides from Pinnacle Investment Management's earnings presentation, Aug 4, 2021
Slide 1: Annual Results Discussion for the year ended 30 June 2021
PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED (PNI) Annual Results Discussion For the year ended 30 June 2021 4 August 2021
Slide 2: Important notice
PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED (PNI) • 5IJTQSFTFOUBUJPOIBTCFFOQSFQBSFECZ1JOOBDMF*OWFTUNFOU.BOBHFNFOU(SPVQ-JNJUFE"#/ 1/* 5IFJOGPSNBUJPO JO UIJTQSFTFOUBUJPOJTDVSSFOUBTBU "VHVTU • 1/*IBTQSFQBSFEUIJTQSFTFOUBUJPOCBTFEPOJOGPSNBUJPOBWBJMBCMFUPJU/PSFQSFTFOUBUJPOPSXBSSBOUZ FYQSFTTPSJNQMJFE JTNB
Slide 3: Agenda
Agenda • ':'JOBODJBM)JHIMJHIUTˊ *BO.BDPVO .BOBHJOH%JSFDUPS • ':#VTJOFTT)JHIMJHIUTˊ *BO.BDPVO .BOBHJOH%JSFDUPS • '6.BOE'MPXT • 0UIFS#VTJOFTT)JHIMJHIUT • ':3FTVMUT%JTDVTTJPOˊ %BO-POHBO $IJFG'JOBODJBM0GGJDFS • 'VOET6OEFS.BOBHFNFOU • (SPXUI CPUIPSHBOJDBOEJOPSHBOJD EPNFTUJDBOEPGGTIPSF 3FTJMJFODFˊ *BO.BDP
Slide 4: FY21 Themes
FY21 Themes • 4USPOHGJOBODJBMPVUDPNF SFTVNQUJPOPGTUSPOHHSPXUIJOQSPGJUBCJMJUZ '6.BOEOFUJOGMPXT • $POUJOVJOHCFOFGJUTPGHSPXJOHEJWFSTJUZPG • "TTFUDMBTTBOEJOWFTUNFOUTUSBUFHJFTPG"GGJMJBUFT • $MJFOUUZQFBOEEPNJDJMF • 1FSGPSNBODF'FFFYQPTVSF • &OUFSJOH': • "OUJDJQBUFHSPXUIˊ TUBSUJOH'6.BIFBEPG':BWFSBHF'6. • 3F
Slide 5: FY21 Financial Highlights
FY21 Financial Highlights • /FUQSPGJUBGUFSUBY /1"5 BUUSJCVUBCMFUPTIBSFIPMEFSTPGNJMMJPOGPSUIFGJOBODJBMZFBSFOEFE+VOF ': VQ GSPNNJMMJPOJOUIFGJOBODJBMZFBSFOEFE+VOF ': • #BTJDFBSOJOHTQFSTIBSF &14 BUUSJCVUBCMFUPTIBSFIPMEFSTPGDFOUT VQGSPNDFOUTJO': • %JMVUFE&14BUUSJCVUBCMFUPTIBSFIPMEFSTPGDFOUT VQGSPNDFOUTJO
Slide 6: FY21 Financial Results
FY21 Financial Results ': . ': . $IBOHF 1*//"$-& 3FWFOVF &YQFOTFT 4IBSFPG1JOOBDMF"GGJMJBUFTOFUQSPGJUBGUFSUBY /FUQSPGJUCFGPSFUBY /1#5 GSPNDPOUJOVJOHPQFSBUJPOT 5BYBUJPO /1"5GSPNDPOUJOVJOHPQFSBUJPOT %JTDPOUJOVFEPQFSBUJPOT /1"5BUUSJCVUBCMFUPTIBSFIPMEFST /1"5BUUSJCVUBCMFUPTIBSFIPMEFSTFYDMVEJOHOFUHBJOTMPT
Slide 7: Strong growth in NPAT and EPS since 'pure play' listed Pinnacle
Strong growth in NPAT and EPS since ‘pure play’ listed Pinnacle $"(3 GJWFZFBST $"(3 GJWFZFBST • 'VMMZGSBOLFEEJWJEFOET IBWFHSPXOBUB$"(3PGPWFSUIFTBNFQFSJPE FYDMVEJOHUIFTQFDJBMEJWJEFOEQBJE BIFBEPG1JOOBDMFMJTUJOHBTBˎQVSFQMBZˏJOWFTUNFOUNBOBHFNFOUCVTJOFTTJO
Slide 8: Pinnacle continues to grow strongly
Pinnacle continues to grow strongly (notwithstanding the COVID-19 crisis) • 8IJMTUHSPXUIJO'6.BOEQSPGJUBCJMJUZXFSFTVQQSFTTFEJO':EVFUPUIFJNQBDUTPGUIF$07*%DSJTJTPO NBSLFUTBOEPVSCVTJOFTT 1JOOBDMFIBTHSPXOTUSPOHMZ POBWFSBHF PWFSUIFUXPZFBSQFSJPEUP+VOF XIJDIFODPNQBTTFTUIFFOUJSFˎDSJTJTQFSJPEˏUPEBUF • /1"5HSP
Slide 9: FY21 Business Highlights – FUM
FY21 Business Highlights – FUM • "HHSFHBUF"GGJMJBUFTˏ'6.PGCJMMJPOBU +VOF BU • 6QCJMMJPOPSGSPNCJMMJPOBU %FDFNCFS • 6QCJMMJPOPSGSPNCJMMJPOBU +VOF • "HHSFHBUF3FUBJM'6. BU OPXCJMMJPOVQGSPNCJMMJPOBU %FDFNCFSVQGSPN CJMMJPOBU +VOF • &RVJUJFTNBSLFUTSBMMJFETUSPOHMZEVSJOH ': GPMMPXJOHUIFEJTMPDBUJPOJOUIFMBUUFS
Slide 10: FY21 Business Highlights – Record Flows
FY21 Business Highlights – Record Flows • /FUJOGMPXTGPS':PGCJMMJPO • CJMMJPOJOUIFTJYNPOUITFOEFE%FDFNCFS )': • CJMMJPOJO)': • 3FUBJMOFUJOGMPXTGPS':PGCJMMJPO CJMMJPOGSPN-*$T-*5T • CJMMJPO)': • CJMMJPO)': JODMVEJOHNJMMJPOXIPMFTBMFJOWFTUPSQMBDFNFOUJO"QSJMJOUIF.$1.BTUFS*ODPNF5SVTU "49 .95 • )ZQFSJPOIBTCF
Slide 11: FY21 Business Highlights – Affiliates
FY21 Business Highlights – Affiliates • 4FWFO"GGJMJBUFTFBSOFEQFSGPSNBODFGFFTUPUBMMJOHNJMMJPO BU1JOOBDMFQPTUUBYTIBSFNJMMJPO JO': JO ': GJWF"GGJMJBUFTFBSOFEQFSGPSNBODFGFFTUPUBMJOHNJMMJPO BU1JOOBDMFTIBSFNJMMJPO EFNPOTUSBUJOHUIF JODSFBTJOHHSPXUIBOEEJWFSTJUZPGTUSBUFHJFTXJUIQFSGPSNBODFGFFQPUFOUJBM1FSGPSNB
Slide 12: Understanding FY21 financial outcome
Understanding FY21 financial outcome • 5PUBM"GGJMJBUFSFWFOVFT XFSFNJMMJPOEVSJOH': JODMVEJOHNJMMJPO JOQFSGPSNBODFGFFTJO ': UPUBM"GGJMJBUFSFWFOVFTXFSFNJMMJPO XIJDIJODMVEFENJMMJPO JOQFSGPSNBODFGFFT • 5IJTSFQSFTFOUTHSPXUIJOUPUBM"GGJMJBUFSFWFOVF FYDMVEJOHQFSGPSNBODFGFFT ': . ': . $IBOHF 1 1*//"$-&"''*-*"
Slide 13: Performance Fees – FUM and Strategy Growth
Performance Fees – FUM and Strategy Growth • 5IFWPMVNFPG'6.XJUIQFSGPSNBODFGFF QPUFOUJBMIBTJODSFBTFETJHOJGJDBOUMZ • '6.TVCKFDUUPQFSGPSNBODFGFFTFOUFSJOH ':JTIJHIFSUIBOUIFBWFSBHFEVSJOH ': • 5IFOVNCFSBOEEJWFSTJUZPGTUSBUFHJFTXJUI TJHOJGJDBOUQFSGPSNBODFGFFQPUFOUJBMIBT JODSFBTFEJOSFDFOUZFBST JNQSPWJOHUIF B
Slide 14: Performance fees have been delivered by a number of Affiliates each year
Performance fees have been delivered by a number of Affiliates each year
Slide 15: Significant components of FY21 results – Pinnacle Parent
Significant components of FY21 results – Pinnacle Parent • 4JHOJGJDBOUSFWFOVFHSPXUIJO1JOOBDMF1BSFOU DPTUTDPOUSPMMFE • 3FWFOVFTIBWFHSPXODPNQBSFEXJUI': ESJWFOCZ TUSPOHJOGMPXTBOESFWFOVFTIBSJOHGFFT • ˎ1-JOWFTUNFOUˏJOTVQQPSUPG)PSJ[POJOJUJBUJWFTTPNFXIBUSFTUSBJOFEEVSJOH':XFEFMJCFSBUFMZTUBZFEGVMMZSFTPVSDFE
Slide 16: Significant components of FY21 results - Affiliates
Significant components of 1H FY21 results - Affiliates • 4JHOJGJDBOUHSPXUI NJMMJPO PS JO1JOOBDMFˏTTIBSFPG"GGJMJBUFQSPGJUTDPNQBSFEXJUI': • 1FSGPSNBODFGFFT BU PGNJMMJPOJO': BDSPTTTFWFO"GGJMJBUFT 1JOOBDMFTIBSFQPTUUBYPGNJMMJPO NJMMJPO BU JO':BDSPTTGJWF"GGJMJBUFT 1JOOBDMFTIBSFQPTUUBYPGNJMMJPO • "EKVTUJOH
Slide 17: PNI Balance Sheet
PNI Balance Sheet $BTIBOE1*PGNJMMJPO +VO . +VO . $IBOHF • • *ODMVEFTNJOWFTUFEJOTUSBUFHJFTNBOBHFECZ $633&/5"44&54 1JOOBDMF"GGJMJBUFT $BTIBOEDBTIFRVJWBMFOUT • &YDMVEFTNPGDBTIBQQMJFEGPS"GGJMJBUFFRVJUZ 'JOBODJBMBTTFUT SFDZDMJOHMPBOT XPSLJOHDBQJUBMMPBOTBOEBEEJUJPOBM "GGJMJBUFFRVJUZQVSDIBTFE Balance sheet
Slide 18: Funds Under Management
FUNDS UNDER MANAGEMENT
Slide 19: FY21 Funds Under Management
FY21 Funds Under Management Gross FUM ($bn)1 • '6.PGCO BTBU+VOF • '6.IBTHSPXO BUB$"(3PGQBPWFS UIF MBTU UFOZFBST FYDMVEJOH COˎBDRVJSFEˏ JO+VMZ BOECJMMJPO ˎBDRVJSFEˏJO %FDFNCFS • *ODSFBTF JO'6.PGCOJO)': • /FUJOGMPXT PGCO • *ODSFBTFTEVF UP NBSLFU NPWFNFOUTJOWFTUNFOU QFSGPSNBODFPGCO • 0GUIF CO PGOFUJOGM
Slide 20: FY21 Funds Under Management
FY21 Funds Under Management 1JOOBDMF )ZQFSJPO 1MBUP 4PMBSJT 3$- 1BMJTBEF "OUJQPEFT 4QIFSJB 5XP5SFFT 'JSFUSBJM .FUSJDT 0NFHB -POHXBWF 3JQBSJBO $PPMBCBI 3FNJOJTDFOU "JLZB UPUBM N N N N N N N N N N N N N N N N N '6.)JTUPSZ BU +VO %FD +VO %FD +VO %FD +VO %FD +VO %FD +VO +VO +VO +VO +VO +VO 1JOOBDMF UPUB
Slide 21: Continuing strong investment performance of Affiliates to June 2021
Continuing strong investment performance of Affiliates to 30 June 2021 : QB : QB *ODFQUJPO QB *ODFQUJPOEBUF 1JOOBDMF*OWFTUNFOU.BOBHFNFOU )ZQFSJPO"TTFU.BOBHFNFOU(SPTT1FSGPSNBODF PG1JOOBDMF "GGJMJBUFTˏ )ZQFSJPO"VTUSBMJBO(SPXUI$PNQBOJFT'VOE 0VUQFSGPSNBODF TUSBUFHJFT BOEQSPEVDUT )ZQFSJPO4NBMM(SPXUI$PNQB
Slide 22: Affiliates' investment performance – June 2021
Affiliates’ investment performance – 30 June 2021 : : QB : QB : QB *ODFQUJPO QB *ODFQUJPOEBUF 1JOOBDMF*OWFTUNFOU.BOBHFNFOU )ZQFSJPO"TTFU.BOBHFNFOU(SPTT1FSGPSNBODF )ZQFSJPO"VTUSBMJBO(SPXUI$PNQBOJFT'VOE 0VUQFSGPSNBODF )ZQFSJPO4NBMM(SPXUI$PNQBOJFT'VOE 0VUQFSGPSNBODF )ZQFSJPO"VTUSBMJBO&RVJUJFT$PNQPTJUF
Slide 23: Affiliates' investment performance – June 2021
Affiliates’ investment performance – 30 June 2021 : : QB : QB : QB *ODFQUJPO QB *ODFQUJPOEBUF 1JOOBDMF*OWFTUNFOU.BOBHFNFOU 5XP5SFFT*OWFTUNFOU.BOBHFNFOU(SPTT1FSGPSNBODF 5XP5SFFT(MPCBM.BDSP'VOE64%$PNQPTJUF 0VUQFSGPSNBODF 'JSFUSBJM*OWFTUNFOUT(SPTT1FSGPSNBODF 'JSFUSBJM"VTUSBMJBO)JHI$POWJDUJPO'VOE 0VUQFS
Slide 24: Pinnacle Affiliates continue to win major industry awards
Pinnacle Affiliates continue to win major industry awards .POFZ.BOBHFNFOU'VOE.BOBHFSPGUIF:FBS -POTFD.POFZ.BOBHFNFOU'VOE.BOBHFSPGUIF:FBS • )ZQFSJPOˊ 'VOE.BOBHFS0G5IF:FBS8JOOFS • 4PMBSJTˊ &RVJUJFT -POH4IPSU $BUFHPSZ8JOOFS • )ZQFSJPOˊ "VTUSBMJBO-BSHF$BQ&RVJUJFT8JOOFS • "OUJQPEFT1BSUOFSTˊ &RVJUJFT -POH4
Slide 25: Growth & Resilience
GROWTH & RESILIENCE
Slide 26: Growth & Resilience
Growth & Resilience • $MFBSFWJEFODFPGTUSBUFHZFYFDVUJPOTVDDFTT • (SPXUIBOE3FTJMJFODFTJNVMUBOFPVTMZEFMJWFSFE • 0VSTUBUVTBTBIJHIHSPXUIDPNQBOZSFNBJOTJOUBDU • 'VMMZSFDPWFSFEGSPNDIBMMFOHFTPG': • 8FQMBOUPNBJOUBJOPVSTUSBUFHZ BJNFEBUEFMJWFSJOHIJHIHSPXUI • $BSFGVMMZ GSPNNVMUJQMFTPVSDFT • "OFYDFMMFOUQMBUGPSNJO
Slide 27: Growth, Resilience, and an exceptional Platform for further Growth
Growth, Resilience, and an exceptional Platform for further Growth • 'PSTFWFSBMZFBST XFIBWFCFFODPOTJTUFOUMZJNQMFNFOUJOHPVSTUSBUFHZ • "QVSFQMBZJOWFTUNFOUNBOBHFNFOUGJSNDPNQSJTJOHPOMZUIFCFTUJOWFTUNFOUQSPGFTTJPOBMT GPDVTFEPO JOWFTUNFOUFYDFMMFODF • )JHIMZSFHBSEFEEJTUSJCVUJPOUFBNT UIFCFTUJOUIF"VTUSBMJBOSF
Slide 28: Three Horizons of Growth
Three Horizons of Growth • $POUJOVFUPCVJME1JOOBDMFCZUBLJOHBNFBTVSFE BQQSPBDIUPHSPXUI • 4VQQPSUUIFHSPXUIPGPVSDVSSFOU"GGJMJBUFTXJUI JODSFBTFEJOWFTUNFOUJOEJTUSJCVUJPODIBOOFMT FH JOUFSOBUJPOBMBOEMJTUFENBSLFUT • *OWFTUJOTFFEOFX"GGJMJBUFTXIFSF NBOBHFNFOUUFBNTIBWFBTUSPOHUSBDLSFDPSE BOEHSPXUIQPUFOUJBM • 4FF
Slide 29: Recap on Horizon Criteria – What could we acquire?
Recap on Horizon 3 Criteria – What could we acquire? • $SJUFSJB • .VTUOPUQMBDFUIF$PNQBOZBUSJTL • 0OMZDPOTJEFSJGMPXSJTLBOEIJHISFUVSOPODBQJUBMPWFSUIFNFEJVNUFSN • &YFSDJTFHSFBUDBSFBOEDBSFGVMEVFEJMJHFODF • .VTUCFTZOFSHJTUJDDPOTJTUFOUXJUIFYJTUJOHDPSF • 4UBUVT • 3FT$BQBDRVJTJUJPOJO • .FUSJDTBDRVJTJUJPOJO+
Slide 30: Future Growth Drivers
Future Growth Drivers • *OWFTUNFOUJO BOEDPOUJOVJOHUPFWPMWFBOEHSPXJOTJ[F BOETPQIJTUJDBUJPO PVSEJTUSJCVUJPOQMBUGPSN • (SPXBIFBEPGPVS"GGJMJBUFT • -JTUFOUPDMJFOUTBOENPWFRVJDLMZUPNFFUUIFJSFWPMWJOHOFFET • %POPUCFDPNFUIFNBSLFUˊ CFBIFBEPGJU • *OWFTUNFOUJOOFX"GGJMJBUFTBEETEJWFSTJGJDBUJPOBOEGVSUIFSHSPXUI • 4V
Slide 31: Growth of our Platform
Growth of our Platform $0/5* /6 * /( 50 * /7 & 45 * / " %* 7 & 34* '* & % 1-"5'0 3 . 50 453& /( 5) & / '6 56 3& (3085 ) • &YFDVUJWFTPGCPUI1JOOBDMFBOE1JOOBDMF"GGJMJBUFT IBWFTJHOJGJDBOUFRVJUZJOUFSFTUT • &RVJUZPXOFSTIJQFOIBODFTBMJHONFOUXJUI TIBSFIPMEFST 4FFE'6.BOEXPSLJOHDBQJUBM .JEEMFPGGJDFBOEGVOEBENJO
Slide 32: Early-stage Affiliates
Early-stage Affiliates • 'PVOEFEJO.BSDI • 4FDVSFENVMUJQMFHMPCBMJOWFTUNFOUDPOTVMUBOUSBUJOHT • .BJEFOBMMPDBUJPOTFDVSFEXJUI"VTUSBMJBOJOTUJUVUJPOJO0DUPCFS • *OUFSOBUJPOBMBMMPDBUJPOTSFDFJWFEGSPN/PWFNCFS • 1PSUGPMJP.BOBHFSTQSFWJPVTMZSFTQPOTJCMFGPSTUFXBSETIJQPG64CO JO&NFSHJOH .BSLFUBOE"TJBOFRVJUJFT POCFIBM
Slide 33: Early-stage Affiliates
Early-stage Affiliates • 'PVOEFEJO • &YDFQUJPOBMQFSGPSNBODFEVSJOHUIF$07*%ESBXEPXO • 4USBUFHZBWBJMBCMFJO$BZNBOBOE"VTUSBMJBOWFIJDMFT • 'JSTU"VTUSBMJBOJOTUJUVUJPOBMJOWFTUPSEVFUPGVOEJO"VHVTU • 'PVOEFEJOFBSMZ • "DIJFWFETUSPOHSBUJOHGSPNPOFPGUIFXPSMEˏTMBSHFTUBMUFSOBUJWFJOWFTUNFOU DPOTVMUBOUT • .BSRVFFJOUFS
Slide 34: Growing a resilient, diversified business
Growing a resilient, diversified business 3FTJMJFODFFOIBODFECZQSPHSFTTJWFEJWFSTJGJDBUJPOPG "TTFUDMBTTFT JODMVEJOHBHSFBUFSSBOHFPOPGGFSPWFSTFBT $MJFOUUZQF $MJFOUEPNJDJMF PWFSTFBTBTXFMMBTEPNFTUJD 1FSDFOUBHFPGGVOETFYQPTFEUPQFSGPSNBODFGFFT
Slide 35: Growth by Affiliate
Growth by Affiliate +VOF +VOF 5PUBM '6.CO 5PUBM '6.CO )ZQFSJPO MBSHFTU BGGJMJBUF 3$- MBSHFTUBGGJMJBUF Hyperion Solaris Palisade 7.5 13.3 Plato 7.8 Resolution Capital Hyperion 2.3 Antipodes Solaris 5.2 12.4 23.2 28.5 Spheria Palisade Firetrail 7.4 2.8 Omega Plato 15.5 1.9 Metrics 23.3 Resolution Capi
Slide 36: Growth in Asset Classes
Growth in Asset Classes '6.CZ"TTFU$MBTT '6.CZ"TTFU$MBTT +VO +VOF 8 Australian Equities* Australian Equities 9 Global Equities* 7 3 24 Global Equities Real Assets (Public 46 Markets) Real Assets (Private 2 Real Assets (Public Markets) 67 19 Markets) Credit (Public Real Assets (Private Markets) Market
Slide 37: Growth and Development of Client Base
Growth and Development of Client Base *OTUJUVUJPOBMˊ %PNFTUJD *OUFSOBUJPOBM 3FUBJMˊ *OUFSNFEJBUFE 3FUBJMˊ %JSFDU
Slide 38: Growth and Development of Client Base
Growth and Development of Client Base 5PUBM'6. BU +VOF 5PUBM'6. BU +VOF Industry Super Fund Industry Super Fund Public Pension Fund 13 16 Public Pension Fund 23 20 1 Corporate Pension Fund 3 Corporate Pension Fund 4 Financial Institution 1 Financial Institution 1 9 Sovereign Fund 2 Sovereign Fund 4
Slide 39: Growth in Retail FUM
Growth in Retail FUM 3FUBJM '6.FWPMVUJPO Y 5PUBM'6.+VOFCO 5PUBM'6.+VOFCO 3FUBJMCO 3FUBJMCO Y 3FUBJM 3FUBJM JOTUJUVUJPOBM *OTUJUVUJPOBM • 1JOOBDMFIBTJOWFTUFE TJHOJGJDBOUMZ JOSFUBJM EJTUSJCVUJPO BOEIBTHFOFSBUFE TVCTUBOUJBM SFUBJM '6.JOUIF MBTU ZFBST _COPG SFUBJM'6.HSPXUI • *OJUJBUJWFTJODMVEFHSPXUIPGJO
Slide 40: Growth in Performance Fee FUM
Growth in Performance Fee FUM "GGJMJBUFT'6. BU TVCKFDU UP QFSGPSNBODFGFFT 5PUBM'6.+VOFCO 5PUBM'6.+VOFCO 4VCKFDUUPQFSGPSNBODFGFFTCO 4VCKFDUUPQFSGPSNBODFGFFTCO 1FSGGFFT 1FSGGFFT /PQFSGGFFT /PQFSGGFFT • 4JHOJGJDBOUHSPXUIJOCPUIBCTPMVUFBOEQFSDFOUBHFPG'6.TVCKFDUUPQFSGPSNBODFGFFT • %JWFSTJGJDBUJPOBDSPTTBTT
Slide 41: Institutional & International Markets
INSTITUTIONAL & INTERNATIONAL MARKETS
Slide 42: FY21 Review
FY21 Review 3FDPSECOJOTUJUVUJPOBMOFUJOGMPXT • CO"VTUSBMJBOTPVSDFE'6. • CO*OUFSOBUJPOBMTPVSDFE'6. %JWFSTFCMFOEPGGMPXTCZBTTFUDMBTT • CO1VCMJDNBSLFUT • CO1SJWBUFNBSLFUT • CO(MPCBMSFBMFTUBUFTFDVSJUJFT • CO"VTUSBMJBOFRVJUJFT • CO$SFEJU QSJWBUFBOEQVCMJD • N(MPCBMFRVJUJFT ,FZUIFNFTESJWJOHTFBSDIBDUJWJUZ • ˎ
Slide 43: FY22 Outlook
FY22 Outlook • 'VOEBNFOUBMTJOQMBDFGPSTVTUBJOFETBMFTHSPXUI • )JHIMZSFHBSEFE"GGJMJBUFTXJUITUSPOHMPDBMBOEJOUFSOBUJPOBMJOWFTUNFOUDPOTVMUBOUSBUJOHT • %JWFSTFTUBCMFPG"GGJMJBUFT BTTFUDMBTT TUZMF TUSBUFHZ NBUVSJUZ FOTVSFTˎBMMXFBUIFSˏSFMFWBODFUPBTTFUPXOFST • 1SJWBUFBOEQVCMJDDSFEJUFYQFDUFEUPTVTUBJODVSSFOUHSPX
Slide 44: Retail Market
RETAIL MARKET
Slide 45: Retail
Retail 3FDPSESFUBJMGMPXTBDIJFWFEPOUIFCBDLPGTUSPOHJOWFTUNFOUQFSGPSNBODF BEBQUBUJPOUPUIFFOWJSPONFOU MFBEJOHUPBTJHOJGJDBOUMJGUJOTBMFTBDUJWJUZMFWFMTBOEDPOUJOVFEGPDVTPOIJHIQFSGPSNBODFPQFSBUJOHNPEFM 4FDVMBSUSFOETJNQBDUJOHJOUFSNFEJBUFEBEWJDFDIBOOFMIBWFBDDFMFSBUFEVOEFS$07*%DPOEJUJPOT • "EWJTFSFYPEVTEVSJOH':
Slide 46: Retail
Retail 5SBOTJUJPOGSPNˎBOBMPHVFˏUPˎEJHJUBMˏEJTUSJCVUJPOQSBDUJDFT • )JHIMZDPNQFUJUJWFFOWJSPONFOUGPSTIBSFPGWPJDFXJUIJODSFBTJOHMZUJNFQPPSBEWJTFSTJOWFTUPST • 0QUJNJTFEFOHBHFNFOUUISPVHICFTUQSBDUJDFUIPVHIUMFBEFSTIJQBOEDPOTVMUBUJWFQSBDUJDFT • 4IJGUGSPNMPOHUFSNDBNQBJHOQMBOOJOHUPDPPSEJOBUFE UPQJDBM OJNCMFHPUP
Slide 47: Retail - Listed solutions update
Retail - Listed solutions update • $3.5 billion1 of listed FUM as at 30 June 2021 across 8 active ETFs, LICs and LITs • ETFs reached a tipping point in March 2020 as ETF adoption had a step change (as seen in monthly ETF value traded) Active ETFs • Active global equities and fixed income dominate ac
Slide 48: Retail – Expanded footprint across intermediated market
Retail – Expanded footprint across intermediated market Advisers 21,300+ Researchers 1,050+ Consultants 150+ Brokers 1,000+ 4PVSDF1JOOBDMF 4BMFTGPSDF FTUJNBUFTBTBU +VOF
Slide 49: Sales stages – delivering “next best action” signals
Sales stages – delivering “next best action” signals
Slide 50: Activities and initiatives driving opportunities/retention across the sales process
Activities and initiatives driving opportunities/retention across the sales process
Slide 51: Optimised Sales Process – “Plan, Nurture, Protect, Retain and Grow”
Optimised Sales Process – “Plan, Nurture, Protect, Retain and Grow” Optimised Sales Process The Perfect Persona - What does a qualified lead look like to the sales team? Qualified Leads Type of practice & portfolio construct | FUA | Sales Stage | Affiliate | Engagement levels Lead Scoring & Grading
Slide 52: Optimised Sales Process – Driving efficiency and productivity
Optimised Sales Process – Driving efficiency and productivity • Investors bucketed by the ‘stage’ in their investment cycle • ‘Gap to Goal’ used to prioritise activities and sales approach 4PVSDF1JOOBDMF 4BMFTGPSDF
Slide 53: MarTech Stack | Accelerating the Distribution Process
MarTech Stack | Accelerating the Distribution Process
Slide 54: Retail – Audience reach of close to 1 million during FY21
Retail – Audience reach of close to 1 million during FY21 4PVSDF1JOOBDMF 4BMFTGPSDF1BSEPU
Slide 55: Total size and net flows in retail asset management industry
Total size and net flows in retail asset management industry – narrower range of winners! $1,600Bn Total Funds Under Management - Retail Funds $1,400Bn $1,200Bn $1,000Bn $800Bn $600Bn $400Bn $200Bn $0Bn $44Bn Annual Estimated Net Flows – Retail Funds $50Bn $31Bn $15Bn $25Bn $10Bn $12Bn $9Bn $9Bn $2B
Slide 56: What Factors Drive Investment Flows? – A.I. and Machine Learning
‘What Factors Drive Investment Flows?’ – A.I. and Machine Learning "VTUSBMJB&RVJUZ'BDUPS1SFNJB .PSOJOHTUBSSVOTBNPOUIMZDSPTTTFDUJPOBMSFHSFTTJPOPGUIFGVOEˏTHSPXUISBUFBHBJOTUUIFJSGVOEDIBSBDUFSJTUJDT • 1PTJUJWFGBDUPST • *OGMPXNPNFOUVN • 4UBSSBUFE • 1BTTJWF • /FHBUJWFGBDUPST • 0VUGMPXNPNFOUVN • )JHIGFFT •
Slide 57: What Factors Drive Investment Flows? – A.I. and Machine Learning
‘What Factors Drive Investment Flows?’ – A.I. and Machine Learning 'BDUPS4UBUJTUJDT 1FSTJTUFODF 5IFGBDUPQSFNJBDPSSFMBUJPOTBSFQFSTJTUFEUISPVHIUJNF5IFGFFTBOEPVUGMPXTBSFOFHBUJWFXIJMFGJWFTUBS QPTJUJWFHSPXUI SBUFTBOE JOEFYGVOETBSFDPOTJTUFOUMZQPTJUJWF 3.00 2.00 1.00 0.00 2007 2009 2010 2011 2012 2013 2014
Slide 58: What Factors Drive Investment Flows? – A.I. and Machine Learning
‘What Factors Drive Investment Flows?’ – A.I. and Machine Learning 4PVSDF.PSOJOHTUBS%JSFDU EBUBBTBU "VHVTU
Slide 59: Performance Fees
PERFORMANCE FEES
Slide 60: Performance Fees – Repeatability and Size
Performance Fees – Repeatability and Size • 1PUFOUJBMBHHSFHBUFQFSGPSNBODFGFFTBSFCPUITJ[FBCMFBOESFQFBUBCMFFBDIZFBS • %FMJCFSBUFTUSBUFHZUPTFFLQFSGPSNBODFGFFTUSVDUVSFTBTBOBMUFSOBUJWFUPIJHIFSCBTFGFFTˊ UIFZBSFEJSFDU TVCTUJUVUFTBOEBNFBOTPGNBYJNJTJOHBWFSBHFBOOVBMSFWFOVF QBSUJDVMBSMZJODBQBDJUZDPOTUSBJOFETUS
Slide 61: FUM subject to material performance fees, by strategy
FUM subject to material performance fees, by strategy %BUF +VOF +VOF +VOF '6. CO CO CO CO 4JHOJGJDBOUTUSBUFHJFT +VO +VO +VO -BSHFBOEJODSFBTJOHQFSGPSNBODFGFF'6.BOETUSBUFHZEJWFSTJUZ
Slide 62: Factors to consider in estimating future performance fees
Factors to consider in estimating future performance fees • )W) UIFQPUFOUJBM BOESFMJBCJMJUZ PGQFSGPSNBODFGFFTBSF MPHJDBMMZ HSFBUFSJO)UIBO) • PVUPGTUSBUFHJFTUIBUDVSSFOUMZIBWFQPUFOUJBMUPEFMJWFSTJHOJGJDBOUQFSGPSNBODFGFFTDSZTUBMMJTFPOMZJOJO) • 5IVT PGTUSBUFHJFTIBWFUIFQPUFOUJBMUPEFMJWFSTJHOJGJDBOUQFSGPSN
Slide 63: Corporate Sustainability
CORPORATE SUSTAINABILITY
Slide 64: Pinnacle as a Responsible Firm
Pinnacle as a Responsible Firm 8FBSFGPDVTFEPODPOUJOVPVTJNQSPWFNFOU TUSJWJOHUPEPCFUUFSCZCVJMEJOHBMPOHUFSN TVTUBJOBCMF GJSNUIBUGPDVTFT POPVSQFPQMF DVTUPNFSTBOETIBSFIPMEFSTBTXFMMBTUIFDPNNVOJUJFTJOXIJDIXF FOHBHF • 4VTUBJOBCJMJUZ4USBUFHZ • &TUBCMJTIFEB4VTUBJOBCJMJUZ$PNNJUUFF • 5IF$PNNJUUFFQSPWJEFTDPPSEJO
Slide 65: Alignment with Sustainable Development Goals
Alignment with Sustainable Development Goals 1JOOBDMFSFDPHOJTFTUIFOFFEGPSTUSBUFHJFTUIBUGPTUFSFDPOPNJDEFWFMPQNFOU SFEVDFJOFRVJUJFTBOEUSBOTJUJPOUPXBSETBNPSF TVTUBJOBCMFGVUVSF#ZBMJHOJOHPVSTVTUBJOBCMFJOJUJBUJWFTXJUIUIF6/4%(TBOEUISPVHIUIFTVQQPSUPGUIF1JOOBDMF$IBSJUBCMF 'PVOEBUJPO XFDBOCFHJOUPUVSOHMPCBMDIB
Slide 66: Diversity, People and Community
Diversity, People and Community %JWFSTJUZ • 1JOOBDMFJTDPNNJUUFEUPTUSFOHUIFOJOHCVTJOFTTJOOPWBUJPOBOEEFDJTJPONBLJOHUISPVHIXPSLQMBDFEJWFSTJUZ1JOOBDMF SFDPHOJTFT UIFCFOFGJUTPGBEJWFSTFHSPVQPGFNQMPZFFTSFGMFDUJOHEJGGFSFOUCBDLHSPVOET BUUSJCVUFT QFSTQFDUJWFT TUZMFT LOPXMFEHF FYQFSJFODFBOEBCJMJUJFT • *O': 1JO
Slide 67: Diversity, People and Community
Diversity, People and Community 1FPQMF • 'VMMZTVQQPSUJWFPGJOJUJBUJWFTUPPQUJNJTFUIFNFOUBMIFBMUIPGFNQMPZFFTUISPVHIBDDFTTUPUIF&NQMPZFF"TTJTUBODF 1SPHSBNGPSFNQMPZFFTBOEGBNJMZNFNCFST • $PNNJUUFEUPJOTUJMMJOHBDVMUVSFUIBUWBMVFTSFTUBOEGBNJMZUJNF8FIBWFFNCSBDFEGMFYJCMFXPSLJOHBDSPTTUIFCVTJOFTTUP BTTJTUFNQMPZFFT
Slide 68: Affiliate commitment to ESG
Affiliate commitment to ESG 5IJSUFFO"GGJMJBUFTBSFTJHOBUPSJFTUPUIF6OJUFE/BUJPOTTVQQPSUFE1SJODJQMFTPG3FTQPOTJCMF*OWFTUNFOU ˑ13*˒ *ODPSQPSBUF&4(JOUP "GGJMJBUF 4JHOBUPSZUP13* )BWFBO&4(QPMJDZ *OWFTUNFOUQSPDFTT "JLZB :FT :FT :FT "OUJQPEFT :FT :FT :FT $PPMBCBI :FT :FT :FT 'JSFUSBJM :FT :FT :FT )ZQFSJPO :FT
Slide 69: Pinnacle Charitable Foundation
Pinnacle Charitable Foundation • 1JOOBDMFJTQBTTJPOBUFBCPVUFOBCMJOHCFUUFSMJWFTUISPVHIJOWFTUNFOUFYDFMMFODF5IJTCFMJFGJTTUSPOHMZSFGMFDUFEJO 1JOOBDMFˏTDPNNJUNFOUˊ UPHFUIFSXJUI"GGJMJBUFTˊ UPUIF1JOOBDMF$IBSJUBCMF'PVOEBUJPO • 5IF'PVOEBUJPOˏTGPDVTJTPOHSPXJOHUIFTVTUBJOBCJMJUZPGDSFBUJWFBOEDMFWFS"VTUSBMJBOOPUGP
Slide 70: Pinnacle Charitable Foundation
Pinnacle Charitable Foundation • ,FZGPDVTBSFBTBOEQBSUOFSTGPS':XFSFBTGPMMPXT • 1SPNPUJPOPGTUSPOHNFOUBMXFMMCFJOH UPHFUIFSXJUITVQQPSUGPSQSFWFOUJPOBOEFBSMZJOUFSWFOUJPOTUSBUFHJFT BJNFEBUSFEVDJOH NFOUBMJMMOFTTBOEESJWJOHEPXOTVJDJEFSBUFT -POHUFSNQBSUOFSTIJQT BSF JOQMBDF XJUI36 0, 3FBDI0VU "VTUSBMJB BOE CBUZ
Slide 71: Continuing response to the COVID–19 crisis
Continuing response to the COVID–19 crisis ˑ5IFSFQVUBUJPOTBOEGVUVSFTVDDFTTPSPUIFSXJTFPGJOWFTUNFOUNBOBHFNFOUDPNQBOJFTBSFPGUFOEFUFSNJOFECZUIFJS CFIBWJPVSBOEQFSGPSNBODFEVSJOHQFSJPETPGDSJTJTBOEUIFJSDBQBDJUZUPSFTVNFHSPXUI EFQFOETPOUIFTUSFOHUIPG UIFDBQBCJMJUJFTXJUIXIJDIUIFZFNFSHFGSPNTVDIDSJTFT˒ <1/*ˊ QSFW
Slide 72: Affiliate Summaries
AFFILIATE SUMMARIES
Slide 73: Pinnacle Affiliates
Pinnacle Affiliates (MPCBM&NFSHJOH.BSLFU&RVJUJFT • )JHIRVBMJUZ • "CTPMVUFSFUVSO • $PODFOUSBUFEQPSUGPMJP • -POHUFSNTVTUBJOBCMFHSPXUI • 4UFXBSETIJQBOE4VTUBJOBCJMJUZ • )FBERVBSUFSFEJO-POEPO 6OJUFE,JOHEPN (MPCBM "TJBOBOE&NFSHJOH.BSLFUTFRVJUJFT • ˎ1SBHNBUJDWBMVFˏJOWFTUNFOUBQQSPBDI • 4USBUFHJFTBDDFTTJCMFW
Slide 74: Pinnacle Affiliates
Pinnacle Affiliates "VTUSBMJBO (MPCBM 4NBMM$BQ-POH4IPSU&RVJUJFT • %FFQGVOEBNFOUBMSFTFBSDIBQQSPBDIDPOTJTUFOUMZBQQMJFEGPS ZFBST • &YQFSUTJOIJHIDPOWJDUJPOJOWFTUJOH • 'PDVTFEPOHFOFSBUJOHBMQIBGSPNTUPDLTFMFDUJPO XIJMTUSFEVDJOHFYQPTVSFUPVOJOUFOEFE NBDSPFDPOPNJDPSUIFNBUJDSJTLT • 6ODPOTUSBJOFEBQQSPBDIQSPWJEF
Slide 75: Pinnacle Affiliates
Pinnacle Affiliates "VTUSBMBTJBO1SJWBUF$SFEJU • 0OFPG"VTUSBMBTJBˏTMBSHFTUOPOCBOLMFOEFST • 1BSUJDJQBUJPOBDSPTTBMMMPBONBSLFUTFHNFOUTˊ MFWFSBHFGJOBODF QSPKFDUGJOBODF DPNNFSDJBM SFBMFTUBUF DPSQPSBUF • *OWFTUNFOUBDSPTTUIFDBQJUBMTUSVDUVSFˊ JOWFTUNFOUHSBEFEFCUUISPVHIUPFRVJUZ XBSSBOUT BOEPQUJPOT • %FFQ BDUJ
Slide 76: Pinnacle Affiliates
Pinnacle Affiliates "VTUSBMJBO"DDVNVMBUJPO -PX7PMBUJMJUZBOE5BY&YFNQU&RVJUJFT (MPCBM*ODPNF&RVJUJFT BOE(MPCBM-POH4IPSU&RVJUJFT • $VTUPNJTFE BMQIBNPEFMTBOEQPSUGPMJPDPOTUSVDUJPOGPSBDDVNVMBUJPO SFUJSFNFOUBOE BCTPMVUFSFUVSOTPMVUJPOT • -BVODIJOH&OIBODFE-PX$BSCPOBOE/FU;FSPTUSBUFHJFTJO"VHVTU • 4ZTUFNBUJDJNQM
Slide 77: Pinnacle Affiliates
Pinnacle Affiliates "VTUSBMBTJBO1SJWBUF"HSJDVMUVSF 'PPE8BUFS • 3FBMBTTFUCBDLFEJOWFTUNFOUTBDSPTTUIFGPPEBOEBHSJDVMUVSFTFDUPS • 1BSUJDJQBUJPOUISPVHIPVUUIFWBMVFDIBJOJOWFTUJOHJOBTTFUTUIBUBSFDSJUJDBMUPUIFQSPEVDUJPOPG FTTFOUJBMHPPETXBUFS GBSNMBOE BHSJDVMUVSBMJOGSBTUSVDUVSFBOEBHSJCVTJOFTTFT • %FFQBHSJDVMUVS
Slide 78: Pinnacle Affiliates
Pinnacle Affiliates 4ZTUFNBUJD(MPCBM.BDSP • 'PSNFS(.04(.UFBN • $PNQFUJUJWFFEHFJTUIFOPWFMXBZJOXIJDIUIFGJSNGVTFTUPHFUIFSBEFFQQIJMPTPQIJDBM VOEFSTUBOEJOHPGGJOBODJBMFDPOPNJDTXJUISJHPSPVTTDJFOUJGJDUFDIOJRVFTGPSGPSFDBTUJOH SFUVSOT WPMBUJMJUZBOEDPSSFMBUJPOTBOEUIFXBZJOXIJDIUIFZDIBOHFUISPVHIUJNF • )BSOFTTFTU
Slide 79: Q&A
Q&A
Pinnacle Investment Management Group — FY2021 Earnings Presentation on 6ix