Perpetual is forecasting a 10 per cent increase in operating profit after tax for the first half of the current year, despite the market failing to produce its customary new financial year rally.
 
The fund manager said it was forecasting operating profit after tax to increase to just over $64 million in the six months to December 31 from $58.2 million a year ago.
"We still have an optimistic view on the Australian equities market, but it's been fundamental to our recent strategy to build a greater diversity of offerings for our customers across a range of asset classes," Perpetual chief executive David Deverall said.
 
The group highlighted the emerging contribution from the growing inflow of funds into Perpetual's new asset classes, particularly credit and enhanced cash products, including cash, fixed interest and mortgage products.
 
The fund manager reported funds under management of $34.5 billion at the end of September, up 5 per cent over end of June figures.
 
The forecast was subject to investment market fluctuations, particularly in the Australian equities market, Perpetual chairman Robert Savage said.
 
"For the first time in recent years, there has not been a significant increase in ASX indices at the commencement of the financial year," Savage said.
 
Perpetual reported that after a restructure of the group's private clients business, the division now represented about 20 per cent of the profitability of its wealth management group.
 
Perpetual's Dublin-based global equities business, PI Investment Management, reported its global equities fund had exceeded its benchmark by over 3 per cent for the 12 months to September 30.
 
"This positions the business well for future fund flows," Deverall said.