A falling share market is eating into profit growth at IOOF.
The managed funds group expects underlying net profit for the current financial year to be flat compared to 2015, between $173 million and $176 million.
A short time ago, its shares had lost 4% to $8.51.
IOOF says revenue in the second half of the 2016 financial year has been adversely affected by falls in the equity market.
This shrinks the size of Funds Under Management, Advice and Administration (FUMA). In the March quarter, IOOF had $131 billion FUMA, down $1.7 billion on the previous three months.
The ASX All Ordinaries index fell another 10% in the early months of calendar 2016.
“Despite recent improvement in conditions, market valuations have failed to recover to mid-2015 levels,” says managing director Christopher Kelaher.
“This volatility in markets has created challenges but the longer term industry fundamentals remain positive and IOOF’s balance sheet remains strong.”