Another major financial services group has felt the impact of market volatility with Wilson HTM foreshadowing a 30 per cent decline in net profit after tax.
In a statement issued on the Australian Securities Exchange today, Wilson HTM said in the context of unrealised losses on principal investments, the absence of performance fees and the ongoing expansion of Pinnacle, if market conditions remained weak the company’s financial result for the full year to June 30, 2008, was anticipated to be around 30 per cent below last year’s net profit after tax.
Looking at its Capital Markets business, Wilson HTM said it had experienced a decline in business volumes in both its institutional and retail broking business units consistent with the decline in trading volumes in the overall share market.
With respect to its investment management business, the company said considerable progress had been made in the Pinnacle Investment Management business, which continued to successfully market its capabilities based on a track record of delivering alpha.
It said the company’s strategy of providing seed funds under management to Pinnacle boutiques as well as its own specialty funds had been instrumental in enabling the Plato and Solaris funds, as well as the Priority Growth Fund, to establish performance track-records.
