Pinnacle Investment Management Group Limited · ASX:PNI
Pinnacle Investment Management — FY2017 Earnings Presentation
30 slides from Pinnacle Investment Management's earnings presentation, Aug 29, 2017
Slide 1: FY2017 financial highlights (ASX announcement)
Level 35, 60 Margaret Street Sydney, NSW 2000 29 August 2017 PO Box R1313 Royal Exchange NSW 1225 www.pinnacleinvestment.com.au By Electronic Lodgement The Manager Company Announcements Office ASX Ltd 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Pinnacle Investment Management Group Limited (ASX:P
Slide 2: Composition of Group's Results
Composition of Group’s Results The profit after tax from continuing operations attributable to shareholders for the 2017 financial year was $12.0 million, reflecting earnings per share of 8.1 cents compared with 5.2 cents per share in the previous corresponding period. Profit from discontinued opera
Slide 3: Pinnacle Affiliates – FUM and Revenue Growth
Pinnacle Affiliates – FUM Growth1 Pinnacle Affiliates – Revenue Growth2 1 Pinnacle FUM includes 100% of FUM managed by Pinnacle’s Affiliates. 2 Revenue shown is 100% of all Pinnacle Affiliates’ revenue. This is shown to indicate trend and excludes revenue derived by Pinnacle itself. 3
Slide 4: Capital Management and Principal Investments
Capital Management and Principal Investments On 30 January 2017 Pinnacle completed a placement of $30 million (pre expenses) via an underwritten placement to institutional and sophisticated investors at $2.40 per share, a discount of 2% on the then market price. Pinnacle intends to utilise the addit
Slide 5: FY17 results teleconference
FY17 results teleconference Investors and analysts are invited to attend a teleconference with Pinnacle’s Chairman, Alan Watson, and Pinnacle’s Managing Director, Ian Macoun, who will discuss the results and answer questions. Please note that the Pinnacle FY17 results call on 29 August 2017 will be
Slide 6: Annual Results Discussion for the year ended 30 June 2017
Pinnacle Investment Management Group Limited Annual Results Discussion for the year ended 30 June 2017 29 August 2017
Slide 7: Agenda
Agenda 2017 Financial Highlights 2017 Business Highlights Group Overview Year in Review - Pinnacle Affiliates - Pinnacle Group Strategy and Priorities for FY2018 1
Slide 8: 2017 Financial Highlights
2017 Financial Highlights NPAT from continuing operations attributable to shareholders of $12.0 million, up 108% from $5.8 million in the prior year Earnings per share from continuing operations of 8.1 cents, up 56% from 5.2 cents in the prior year NPAT attributable to shareholders of $13.1 mi
Slide 9: 2017 Business Highlights
2017 Business Highlights Record FUM, FUM inflows and Affiliate Revenues FUM $26.5 billion* at 30 June 2017 - up $1.5 billion (6.1%) from 31 March 2017; - up $3.2 billion (13.7%) from 31 December 2016; and - up $6.8 billion (34.3%) from 30 June 2016 Net inflows $4.9 billion for the year, includ
Slide 10: Pinnacle and Affiliates continue to win major industry awards
Pinnacle and Affiliates continue to win major industry awards Morningstar Fund Manager of the Year Awards, 2016: Hyperion – Australian Fund Manager of the Year Hyperion – Domestic Equities Category Winner, Australia Hyperion – Domestic Equities Small Caps Category Winner, Australia Zenith – Pr
Slide 11: Consistent growth in FUM
Consistent growth in FUM Pinnacle funds under management ($bn)* FUM of $26.5 billion at 30 June 2017^ FUM has grown at a CAGR of 35.6% over the last ten years Increase of $6.8 billion or 34.3%, from 30 June 2016 Net fund inflows of $4.9 billion and market movements/investment performance of
Slide 12: Consistent growth in Pinnacle Affiliates revenues
Consistent growth in Pinnacle Affiliates revenues Total Affiliate Revenues ($m)* Total Affiliate Revenues of $128.3m, including $16.7m (or 13.0%) in performance fees, compared to total Affiliate Revenues of $92.8m in FY16, including 17.8m (or 19.2%) in performance fees 49.1% growth in Pinnacle A
Slide 13: Progress to Date – Platform and Reputation
Progress to Date – Platform and Reputation • A PLATFORM FOR GROWTH Continuing investment excellence Widespread industry recognition and support ‘Article of faith’ reputation • Increasing diversification • Proven ability to build high quality investment managers, and facilitate substantial succ
Slide 14: Australia's leading multi-affiliate investment management firm
Australia’s leading “multi-affiliate” investment management firm Structure promotes independence, accountability, focus and longevity • Executives of both Pinnacle and Pinnacle Affiliates have significant equity interests • Equity ownership enhances alignment with shareholders Seed FUM and working c
Slide 15: Pinnacle Group Overview
Pinnacle Group Overview WN Pinnacle INVESTMENT MANAGEMENT HYPERION ASSET MANAGEMEN| Wy . At! PALISADE 35.15% IN Pinnacle INVESTMENT MANAGEMENT RESOLUTION SOLARIS CAPITAL investment management
Slide 16: Overview of Pinnacle Affiliates
Overview of Pinnacle Affiliates » Antipodes Partners – a pragmatic value manager of global equities (long only and long-short). » Hyperion Asset Management – a specialist manager of Australian and Global equities following a quality growth style. » Palisade Investment Partners – a specialist manager
Slide 17: Strong Investment Performance of Affiliates
Strong Investment Performance of Affiliates 100% of Pinnacle Affiliated Investment Manager strategies and products (with a track record exceeding 5 years) have out performed their benchmarks over the 5 years to 30 June 2017 5Y 10Y Inception Inception date Pinnacle Investment Management Hyperion Asse
Slide 18: Pinnacle Affiliates – FY17 performance
Pinnacle Affiliates – FY17 performance » Funds under management grew to $3.8 billion from $449 million at 30 June 2017 » Out-performance across all strategies for the year to 30 June 2017, and since inception in 2015 » Antipodes LIC (ASX: APL) listed in October 2016, following a $307 million raise »
Slide 19: Pinnacle Affiliates – FY17 performance
Pinnacle Affiliates – FY17 performance » Funds under management increased to over $4.0 billion (2016: $3.0 billion) » All of Plato’s domestic strategies have outperformed their benchmarks over five years and since inception, while income strategies have delivered on their strong income targets » Pla
Slide 20: Pinnacle Affiliates – FY17 performance
Pinnacle Affiliates – FY17 performance » Microcap and Small Caps strategies outperformed their benchmarks for the year to 30 June 2017 and since inception » Funds under management $211 million at 30 June 2017 » Systematic Global Macro manager, commenced idea generation in May 2017 » First strategy e
Slide 21: Pinnacle Affiliates – Funds under management
Pinnacle Affiliates – Funds under management 30 June 2017 ($m) 30 June 2016 ($m) Antipodes Partners 3,830 449 Hyperion Asset Management 5,877 5,633 Palisade Investment Partners 1,514 1,436 Plato Asset Management 4,003 3,067 Resolution Capital 5,956 4,576 Solaris Investment Management 5,135 4,595 Sph
Slide 22: Pinnacle Affiliates investment performance (30 Jun 2017)
Pinnacle Affiliates investment performance (30 Jun 2017) 1Y 3Y 5Y 10Y Inception Inception date Pinnacle Investment Management Hyperion Asset Management - Gross Performance Hyperion Australian Growth Companies Fund 6.29% 9.84% 17.15% 7.36% 12.50% 1/10/2002 Outperformance -7.53% 3.20% 5.52% 3.92% 3.37
Slide 23: Pinnacle Affiliates investment performance (30 Jun 2017)
Pinnacle Affiliates investment performance (30 Jun 2017) 1Y 3Y 5Y 10Y Inc eption Inc eption date Pinnacle Inves tment Management Resolution Ca pita l - Gross Performa nce Res olution Capital Core Plus Property S ecurities Fund -0.14% 14.68% 16.15% 8.64% 30/09/2008 Outperformance 5.50% 2.48% 1.91% 2.
Slide 24: Pinnacle Affiliates financial highlights
Pinnacle Affiliates financial highlights FY2017 FY2016 Strong FUM and revenue growth in Pinnacle Affiliates (100% aggregate basis) FUM ($billion) 26.5 19.8 Pinnacle Affiliates: Revenue ($million) 128.3 92.8 $4.9 billion net inflows, $2.5 billion of Net profit before tax 62.7 51.5 Tax expense (19.1
Slide 25: Group financial summary
Group financial summary FY2017 FY2016 Strong growth in Pinnacle earnings Pinnacle Revenue 10.9 8.4 Expenses (16.4) (15.8) Reduction in net loss of “parent” Share of Pinnacle Affiliates net profit after tax 17.6 15.9 Net profit before tax (NPBT) from continuing operations 12.1 8.5 Minority intere
Slide 26: PNI balance sheet
PNI balance sheet (A$m) 2017 2016 Cash and Principal Investments of $42.5 million Current assets Includes $29.8 million in strategies managed by Pinnacle Cash and equivalents 10.9 13.6 Affiliates Financial assets 31.6 10.9 Total cash and financial assets 42.5 24.5 Excludes post balance date im
Slide 27: Broad Strategy Principles
Broad Strategy Principles Keep existing Protect the businesses Core strong and growing Be open to Recognise possibilities without feeling the 3 pressure to Growth undertake Horizons Horizon 2 and 3 initiatives Convey Deliver on consistent and reasonable reasonable growth growth expectations, and exp
Slide 28: Growth Horizons Framework
Growth Horizons Framework Horizon 3 • Must not place the company at risk Horizon 2 • Only consider if low risk and high return • New boutiques on invested capital and ‘non-capital’ Horizon 1 parent growth • Exercise great care initiatives (direct- and careful due • Sustain organic to-retail, offshor
Slide 29: Priorities for FY18
Priorities for FY18 » Maintain the current strong momentum » Our people are key – exceptional individuals who have chosen our business model and culture – will sustain the environment to continue success » Remain focused on continued strong investment performance » Continued growth in FUM including
Slide 30: Disclaimer
Disclaimer • This presentation has been prepared by Pinnacle Investment Management Group Limited (PNI). The information in this presentation is current as at 29 August 2017. • This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respect
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