Despite heightened volatility,
-Hyperion Global maintains record performance
-Gross performance fees largely driven by the top five affiliates
-Is the stock fully valued?
The planets are aligning for
No specific guidance was provided for FY21 but stronger institutional flows have been noted for May and June. There were no changes in ownership during the second half, although the company expects to increase its share of affiliates over time.
Morgans assesses market direction will dictate the short term outlook and notes the company has stabilised the earnings drag from parenting costs, which are expected to remain relatively stable over FY21-22.
Pinnacle remains positive about institutional flows for the next year or so and, as the broker highlights, this is a lumpy item. Aggregate retail funds under management (FUM) of
Still, as Macquarie points out in the second half the S&P/ASX 300 index was down -11.9% in the MSCI World Index was down -7.1%. Otherwise, there was plenty to like and the results beat the broker's estimates at both the revenue and cost lines.
Net inflows were
While overheads were worse, as flows proved hard to secure,
Affiliates
Net profit from affiliates was up 15% and the company asserts early evidence of increased diversity along with the investment strategies of affiliates underpinned the results.
Hyperion Global has been exceptional and Morgans expects inflows to be forthcoming from Metrics and Coolabah as well, with outflows from Antipodes. Around 90% of affiliate strategies are outperforming on a five-year view. Moreover, around 32% of FUM is capable of earning performance fees.
Gross performance fees of
Wilsons, not one of the seven stockbrokers monitored daily on the FNArena database, considers the stock is fully valued and downgrades to Market Weight from Overweight, with a
See also, Diversity Bodes Well For Pinnacle on
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