Investment management company Perpetual (PPT) announced at its AGM today that it expects a 10% increase in operating profit for the first six months of the financial year, below market expectations.
It appears the tentacles of the global credit crisis have reached the conservative money manager, with Perpetual Chairman, Robert Savage saying events in the credit markets had resulted in below benchmark performances in the company's exact and enhanced cash funds.
This lacklustre performance was attributed to small unrealised losses arising from the revaluation of credit securities.
"Excluding the impact of losses borne by Perpetual in respect of these funds, the forecast result for the first half of the current year would be a 15 per cent increase over the prior half year," he said.
"The forecast is subject to fluctuations in the markets, particularly in Australia."
CEO of Perpetual David Deverall said the crisis in the global credit markets had impacted on the company's income business and corporate trust business, both of which transact in the credit markets.
"The credit crisis is a timely reminder of two core investment principles which are at the heart of Perpetual's investment philosophy, those being the importance of diversification and a focus on quality," he said, diverting attention to the future of the company.
"We have a clear vision and strategy to generate long-term shareholder value, our organisation structure has been refined and our teams are engaged in the delivery of our strategy."
"Perpetual is focussed and poised to deliver another good result for shareholders in 2008."
Shares in Perpetual fell by 2.8% today to close at $73.76.
