Pinnacle Investment says it expects a 25 per cent lift in half-year profit, while funds under management have climbed 23 per cent since June.

In an unaudited trading update on Wednesday, the fund manager said net profit from continuing operations was expected to hit $10.1 million for the six months to December 31, compared to $8.1 million a year earlier.

The company also told shareholders to expect second-half profit to be larger than that in the first half.

‘Substantial potential performance fees crystallise on an annual basis and are therefore potentially received in the second half of each financial year, with no accruals recognised in the first half,’ the company said.

Pinnacle, which listed on the ASX in 2007, said funds under management are expected to reach $46.7 billion at the half year, up $8.7 billion or 22.9 per cent from June 30, and an increase of more than 70 per cent since June 2017.

On a poor day for financial stocks, shares in Pinnacle were down 4.8 per cent at $4.78 at 1055 AEDT – 43.3 per cent down from October’s record high of $8.43.