Platinum talks down ‘optimistic’ forecasts
Platinum Asset Management has issued a statement suggesting that the continued uncertainty in share markets and likely increases in costs have made recent brokers’ forecasts “optimistic”.
In an announcement released on the Australian Securities Exchange today, the company said that the broker analysts’ consensus forecasted earnings per share (EPS) for financial year 2009 was around 22.1 cents per share but, allowing for continued uncertainty in share markets, likely increases of costs and the likely absence of performance fees “this consensus seems optimistic”.
Platinum said the likely increases in costs were associated with building the company’s investment team.
It said that funds under management (FUM) flows had been slightly negative and at the end of July a performance fee mandate of around $240 million would cease.
“We observe that in some segments of global markets, there is remarkable value and we would not be surprised if there were some relief from a decline in the price of oil,” it said.
“Even though our performance is proving superior to the field over the last 12 months, FUM flows have a tendency to be backward looking, which, together with jagged market action, could result in the average of FUM being lower than the average for 2008.”
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Mike Taylor
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