Pinnacle has posted a 120% growth in net profit after tax (NPAT) attributable to shareholders to $30.3 million for the six months ended 31 December, 2020.
At the same time, the firm reported net inflows for 1H FY21 of $5.5 billion, including $1.9 billion retail while basic earnings per share attributable to shareholders stood at 17.5 cents and were up 11% from 8.1 cents in 1H FY20.
Following this, the board announced that fully franked interim dividend per share of 11.7 cents which was up 70% from 1H FY20.
The company said that its strong growth financial outcome, which included growth in funds under management (FUM) and strong net inflows, was helped by its a growth in size and breadth of affiliate base. This included greater diversification across different asset classes and investment strategies and enhanced performance fee potential across a range of strategies.
Total affiliates revenues were $201.3 million during 1H FY21, and included $45.2 million in performance fees, and represented a 52% growth in total affiliate revenue (18% excluding performance fees).
“Following the market dislocation in 2H FY20, with deferrals in certain institutional allocations and lower net retail inflows compared to previous periods, net inflows recovered strongly in 1H FY21, across both retail and institutional channels, with record flows generated in total, and from retail,” the firm said in the announcement made to the Australian Securities Exchange (ASX),” it said.
According to the market update, these inflows together with the rising market drove higher profitability in the Pinnacle Affiliates as well as in Pinnacle parent.
Aggregate Affiliates’ funds under management grew to $70.5 billion at the end of December, which represented a 20% growth from $58.7 billion at the end of June and a 14% growth from $61.6 billion at the end of 2019.
Aggregate retail FUM stood at $16.7 billion and were up 28% from $13.1 billion at the end of the June, 2020.