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Highlights:
- Pinnacle said that its performance fee for H1FY23 is expected to be lower than AU$1 million.
- Followed by this update, Pinnacle’s shares were down by 4.337% on ASX at 1:36 PM AEDT today.
Diversified financial company Pinnacle Investment Management Group Limited (ASX:PNI) announced today (9 December 2022) that it is expecting its net share of performance fees, after-tax payable by affiliates on this revenue, to be potentially lower than AU$1 million, compared to the performance fee of AU$6.4 million during the previous corresponding period (ended on 31 December 2021).
Meanwhile, Pinnacle’s shares were spotted trading 4.337% lower on ASX at AU$8.380 per share at 1:36 PM AEDT today (9 December 2022).
Pinnacle also added that the estimation of the performance fee was followed by a thorough review of affiliate investment performance relative to benchmarks and high-water mark levels as of 30 November 2022 for the potential strategies that will deliver performance feels during the first half of every year.
Although several performance-fee-driving strategies of the company have outperformed their benchmarks, however, they have failed to earn performance fees as they entered the period behind the relevant high-water marks. Furthermore, Pinnacle said that style-related performance below the benchmark could not drive performance fee earnings in the given period.
As a result, the company expects to earn higher performance-fee in the second half as it believes that other strategies will be able to earn performance fees over the full 12 months period.
The share price movement of Pinnacle on ASX
Over a period of the last one year, Pinnacle’s share price has dropped by 48.18% on ASX. In the last six months, the company’s share price gained over 14%, and in the last one month, Pinnacle’s share price increased almost by 3% on ASX. However, on a YTD basis, Pinnacle’s share price fell more than 47% on ASX (as of 2:04 PM AEDT today).
