This morning international equities manager Pinnacle Investment Management Group Ltd (ASX: PNI) reported its results for the financial year ending June 30, 2019. Below is a summary of the results with comparisons to the prior corresponding period.
- Net profit from continuing operations of $30.5m, up 32%
- Earnings per share from continuing operations of 18.3c, up 28%
- Fully franked final dividend of 9.3cps, up 33% from 7.8cps
- Funds under management (FUM) of $54.3 billion (up 43%) at 30 June 2019 (includes $6.8 billion ‘acquired’ in July 2018)
- Net inflows of $1.5 billion over FY 2019
- $2.9 billion of the $6.5 billion net inflows for the year were retail, including $1.0 billion in LICs/LITs
- 94% of 5-Year affiliate (investment) strategies have outperformed at 30 June 2019
- Cash on hand of $51 million
This looks a strong all round result from Pinnacle as it has delivered a mix of organic and acquisitive growth underpinned by a strong six months to June 30 2019 for equity markets. However, it’s worth noting equity markets have tanked this week.
In terms of FUM growth Pinnacle has now delivered a compound annual growth rate in FUM of 34.6% over the last 5 years and 28.5% over the last 10 years when including acquired FUM. The numbers (26.8% and 31%) are only marginally lower on an organic or inflows plus market appreciation basis when excluding acquired FUM.
On a rough day for the S&P/ ASX200 (ASX: XJO) which is down 2.8%, Pinnacle stock is up 4% as the $30.5 million profit is well ahead of analyst consensus expectations at $29.6 million, or Bell Potter at just $28.2 million.
Using conventional valuation metrics the stock at $4.04 trades on 22x trailing EPS from continuing operations with a 2.3% dividend yield plus full franking credits.
On first blush Pinnacle looks an impressive outfit, but I must admit to not being familiar enough with it to form an investment view.
With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.
Hint: These are 3 shares you’ve probably never come across before.
They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”
We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."
Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!
The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.
You can find Tom on Twitter @tommyr345
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.