Ann: 1HFY23 Financial Highlights and Investor Presentation, page-4

Quite disappointing results just looking at the top line.
Despite the rebound of the Australian market during H1 23 (+ 7 % for ASX 200), PNI had a slight decrease of its FUM.
Mainly due to 1.5 bn of net outflow (not expected given the rebound of the market).

Also interesting to look at the last 3 half year results (NPAT attributable to shareholders) : 40 m in H1 22, 36 m in H2 22 and 30 m in H1 23.
Some elements to explain it :
- performance fees contribution to NPAT : 6.4 m in H1 22, 10.2 m in H2 22 and 0.9 m in H1 23,
- regular decrease of FUM which went from 93.6 bn in Dec 21 to 83.2 bn in Dec 22.

Looking into more details at its FUM :
- regular decrease for instos during the last 3 half, even if they seem to get better average fees from instos,
- decrease for retail during last half (despite the increase of the market and 0.3 bn of net inflows)
- even international FUM (expected to be their main source of growth) was almost flat during the last half (at 9.6 bn vs 9.4 bn) despite 0.7 bn of net inflows and MSCI world increasing by 1.4 % during this reporting period.

The company explains its disappointing FUM figures, in particular by the fact that the 2 of its main styles (growth and real estate) had a poor performance during the last half.
I also wonder if it can be explained by a limited exposure to alternative investment and credit, which have attracted a large part of net inflows in the market.

If we annualise these H1 results, the stock does not look cheap, in particular compared to the rest of the sector.
I am surprised that the market continues to see it as a growth stock, while the company struggles to find new sources of growth (unlike my previous expectations, the company is not showing much growth with its international business).