Pinnacle stock price jumps 13% on fiscal 2022 earnings growth

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The Pinnacle Investment Management Group Ltd (ASX: PNI) stock price soared today.

Pinnacle shares closed yesterday at $10.07 and are currently trading at $11.41, up 13.31%.

It comes after the multi-affiliate investment management company released its annual financial results for the 12 months ending June 30 (FY22) after the market close yesterday.

Below we take a look at the highlights.

Pinnacle share price jumps as earnings rise in FY22

What else happened during the exercise?

As of June 30, 2022, Pinnacle reported that its subsidiaries’ funds under management (FUM) were $83.7 billion. That’s down 6% from the $89.4 billion reported as of June 30, 2021.

Aggregate retail FUM rose 4% year-on-year to $21.1 billion.

The company said retail net inflows during the fiscal year remained positive, noting that the first half of FY22 was much stronger than the second half. The first half saw a record $2.9 billion in net retail inflows, while second half inflows were $700 million. Pinnacle said this was primarily due to broader industry-wide pressure and market dislocation.

The investment manager ended fiscal 22 with cash and core investments of $178.2 million. Its facility with Commonwealth Bank of Australia was extended to $120.0 million and fully drawn on June 30, 2022.

Pinnacle’s share price could also rise after the company revealed it had plenty of “dry powder” for potential business investment with $90.0 million of that CBA facility invested in liquid funds managed by affiliates “until necessary”.

What did management say?

Addressing the growth in earnings, dividends and EPS that appears to be driving Pinnacle’s share price higher today, Pinnacle Chairman Alan Watson said, “While these growth rates are not as high as expected earlier in the year, they were undeniably affected by the market. context of current geopolitical tensions, war, high inflation and sharply rising interest rates”.

Pinnacle Managing Director Ian Macoun added:

Following record retail inflows in the first half of fiscal 2022, net inflows for the second half fell below our expectations as we faced challenging market conditions and environmental pressures. industry scale.

We have continued to invest in our distribution capabilities, particularly at retail and overseas, to ensure that we are well positioned to continue to grow and expand our market share. In contrast to the disappointing flow figures, it is pleasing that our average base costs continue to rise and that the revenue impact of our net flows during the year has been significantly positive.

And after?

Looking ahead, Watson said: “We plan to continue our strategy to further increase the diversity of asset classes under management and the diversity of sources of funds under management, particularly international, and to retain a healthy percentage of funds under management exposed to performance fees. , increasing both Pinnacle’s resilience and growth potential.

Pinnacle Share Price Overview

Despite today’s surge, Pinnacle’s share price remains down 27% in 2022, compared to a 9% year-to-date loss recorded by the Index of all ordinaries (ASX: XAO).

The past month has been much better for Pinnacle shareholders, with the stock price up 53% since July 4.