Platinum outflows improve by 65%
Platinum Asset Management has released its funds under management for December, following a potential deal with Regal Partners.
In an ASX update, the firm said its FUM was $11 billion, up slightly from $10.9 billion in November.
During the month, it experienced net outflows of $289 million which included outflows from the Platinum Trust funds of $247 million.
However, this was smaller than outflows experienced in the previous month when it lost $841 million in November, thanks to the loss of an institutional mandate of $537 million and net outflows from the Platinum Trust of $239 million during the month.
Performance fees for the second half of 2024 were “insignificant”, it said.
Over the 12-month period, FUM fell 27 per cent from $15.1 billion in January 2024 to $11 billion in December.
At the end of the year, the firm entered a period of due diligence with Regal Partners regarding a possible acquisition.
An initial bid was made in September but this was rejected by the Platinum board as it felt the bid undervalued Platinum and felt it was not in the best interest of Platinum shareholders.
The following month, the firm announced it had reopened the door for Regal to enact a period of due diligence in the hope of Regal submitting a revised bid.
In December, both parties stated they had reached an agreement to cease discussions and that Regal would not be making another bid.
“The respective parties have conducted an initial period of mutual due diligence which has now concluded. Platinum advises that discussions with Regal have ceased, removing the uncertainty that has persisted since Platinum rejected Regal’s initial proposal,” Platinum told the ASX.
“Platinum remains fully focused on executing its restructure and turnaround strategy and has so far illustrated momentum in the areas of cost control, remuneration redesign, product rationalisation and a review of the investment process, all initiatives designed to stabilise and reset the business in order to return to a growth footing.”
It is understood Platinum has also received interest from Challenger, Wilson Asset Management and Paradice Investment Management, but Regal is the only one as yet to be granted this period of due diligence.
AUTHOR
Laura Dew
Recommended for you
A fourth private credit fund has received interim stop orders from ASIC following the regulator’s surveillance review.
Perpetual is yet to confirm a buyer for its planned wealth management disposal, but has reported strong asset management inflows in the first quarter.
Two ETF fund managers have opted to switch away from Cboe and onto the ASX in search of better broker connectivity.
The former CEO and co-founder of Zenith Investment Partners has switched sides and moved in-house to take up an executive role at a listed fund manager.
