Perpetual sets profit target

Perpetual is looking to its new global equities operation in Dublin to help it achieve a 10 per cent growth target by the end of June next year.

The optimism comes despite several investment ratings houses expressing concern over Perpetual’s move to drop the growth style US-based Fidelity Investments in favour of a Dublin based team of value-orientated managers to administer its $2.2 billion global equity portfolio.

But both Perpetual chairman Charles Curran and managing director David Deverall said the group was on track to outperform on last year’s results by focusing on new initiatives and balancing out the existing business portfolio.

“With increased fund flows as markets remain positive and continued careful management of operating expenses, I am pleased to advise that subject to market conditions we are more confident of achieving an increase in operating profit after tax of excess of 10 per cent for the year to June 2005,” Curran said.

“We are moving to better balance our activities to reduce exposure to market fluctuations.”

Deverall said: “In order to achieve a more balanced portfolio, during the years we created the integrated wealth management division, completed an extensive review of our advice business to deliver increased profit in the coming years.

“We believe the global equities market presents significant opportunities for Perpetual through its size, high growth potential and the increasing trend for investors to diversify their investment portfolios by taking advantage of global opportunities,” he said.