Pinnacle Investment (PNI) – The Metrics system

Pinnacle Investment Management Group operates as an investment management company in Australia. The company offers third party distribution, and fund infrastructure and support services to its affiliates and various investment managers. Pinnacle is based in Sydney, with additional offices in Brisbane, Melbourne,and London.

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Pinnacle Investment Management’s March-quarter FY26 update missed our forecasts, with portfolio underperformance the primary driver although this was largely expected by the market. Fund inflows were robust at $9.4 billion in the quarter, as momentum continued despite market wobbles, even if those wobbles had a negative impact of $8.6 billion, leaving growth in total funds under management (FUM) up just 0.4% in the quarter. Of the $59.6 billion of FUM where performance fees can be earned, around 60% of these were at their high-water mark (HWM) threshold where fees can be charged, while another 22% of FUM is within 2% of their HWM.

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Flows into the highly attractive core global equities funds, including the Life Cycle and Plato offerings, and alternative fixed-income products, including the Coolabah offerings, were described as “robust”. Pinnacle said there was “strong demand” for these products, including both fundamental core and systematic core portfolios, and also noted that AI was a “central theme” across all asset classes. The fund manager has taken the opportunity to acquire a further 6.8% stake in Metrics for $100.5 million from a retiring co-founder of the business, a strong endorsement by Pinnacle management in the performance and growth outlook for the business. In addition, the Advantage Partners affiliate has raised a Japan Buyout fund, with an expected size of $2.5–3.0 billion, which closed in April.

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We maintaina Buy recommendation and raise our target price to $22.10 from $21.80.

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