Platinum reports $454m outflows, further losses ahead
Platinum Asset Management has reported its second-highest monthly outflows for 2025 with more expected later this year, thanks to a major client redemption.
In its August funds under management (FUM) update, the ASX-listed asset manager said it experienced outflows of $454 million.
This is the second-highest outflow since the start of the year, with the highest being a loss of $1.6 billion in May, and brings FUM down to $7.5 billion.
The firm said this consists of $336 million outflows from its Platinum Trust fund and $75 million linked to outflows from the Platinum Asia Fund Complex ETF. This is related to the scheme of arrangement, which saw the Platinum Asia listed investment company move into the Platinum Asia Fund Complex ETF that also incurred a $74 million special dividend and $22 million tax payment.
There had been a similar plan to transform the Platinum Capital listed investment company into a Platinum International Fund Complex ETF, but this plan was scrapped after facing pushback from major shareholder L1 Capital, which is due to merge with the asset manager.
While this is one of the highest monthly outflows of the year, the firm has warned it expects to see greater outflows in October and November linked to a major client redemption.
At the start of September, Platinum announced it would lose $580 million by November from its Platinum Trust fund as a result of a client’s manager review.
This is the third major client withdrawal this year following an exit of an institutional mandate worth $958 million in May and a smaller one worth $360 million in the same month, which led the month’s net outflows to reach $1.6 billion. This is the largest volume of monthly net outflows from the company in over a year.
In its full-year FY25 results, Platinum said outflows during the financial year had been $5.6 billion, divided between $3.1 billion from retail investors and $2.3 billion from institutional ones. While institutional outflows actually saw a small 5 per cent decrease from those seen in FY24, the retail ones were 33 per cent higher than the previous year when they stood at $2.3 billion.
The majority of these outflows come from its flagship Platinum International Fund, which experienced underperformance during the financial year, as well as the loss of its two portfolio managers Andrew Clifford and Clay Smolinski in February.
AUTHOR
Laura Dew
Recommended for you
Global investment manager BlackRock has signed an agreement to manage $121 billion for Citi Wealth clients in almost 100 countries, the latest development in its wealth management plans.
Colonial First State has launched a small-cap fund with Wellington Management, its third fund with the US investment manager.
Pacific Current Group is to lose its chief financial officer and non-executive director, prompting the asset manager to consider a board restructure.
Northern Trust Asset Management has promoted co-chief investment officer Michael Hunstad to president.
