Strong first-quarter growth in investment funds under management has motivated Perpetual Trustees Australia to forecast a 15 per cent rise in operating profit after tax for the half year to December 31.
This figure will be adjusted to about 10 per cent under the new Australian International Financial Reporting Standards (AIFRS).
FUM increasing from $26.7 billion to $29.4 billion resulted from “favourable equity market conditions, strong investment performance and healthy net inflows”, said chairman Charles Curran while speaking at the annual general meeting of the group yesterday.
“Looking to the longer term, the fundamentals remain strong and we are well positioned to generate value from many available opportunities.”
Managing director David Deverall cautioned, however, that the forecast is subject to investment market fluctuations, particularly in the Australian equities market.
“We believe we are well positioned in all of our businesses to continue our good track record of growth, subject to any significant market decline,” he said.
Deverall said that, during the first quarter, Perpetual had implemented a number of initiatives as part of its corporate strategy to ensure the company can continue to grow.
These included the launch of its new QI Long Short Equities Fund, the sale of its 50 per cent stake in ASX Perpetual Registrars Limited, the establishment of a direct property funds management capability, and the commencement of the process for the acquisition of the remaining 50 per cent of its listed property securities joint venture.
It also includes the approval last week from the Securities and Exchange Commission (SEC) to act as an investment adviser to the institutional market in the United States.
Deverall said the new Dublin-based Perpetual Investment Management Limited (PIML) “continues to set milestones in relation to the establishment of the business”.
PIML has already received generous ratings from Australian research houses on the strength of its asset management team, which it recently poached from Bank of Ireland Asset Management.
Curran retired at the end of the annual meeting and has been succeeded by Robert Savage, who is also the chairman of David Jones and a director of Smorgon Steel Group.
