Clime Investment Management has forecast a $2.9 to $3 million net operating profit after tax for 2007.
This new forecast is about 20 per cent higher than the previous May estimate.
"The significant variance is driven by higher than expected profitability of the company's funds management business," Clime managing director John Abernethy said.
According to Abernethy, the result was boosted by strong performance in both the general market and its own self managed investments, including the 10 per cent stake held in Clime Capital.
"The last quarter saw some very strong inflows across both the retail markets and through wholesale IMAs," he said.
"We expect this to continue post-June 30, as all that money put into superannuation now has to be placed somewhere."
Additional costs from the development of new products, including the soon to be launched Clime Value Growth Fund, had impacted the result somewhat.
Clime will release its full year profit announcement, including the annual report, in late August 2007.
