Platinum reports largest net outflows for six months

Platinum Andrew Clifford FUM fund flows

11 March 2024
| By Laura Dew |
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Hot on the heels of announcing its turnaround strategy, Platinum Asset Management has shared its latest funds under management (FUM) figures.

In an ASX update, the firm said it experienced net outflows of $285 million in February which included $240 million in outflows from its Platinum Trust funds. 

However, overall FUM increased during the month from $15.1 billion to $15.5 billion. 

This is down 18 per cent from total FUM a year ago when it stood at $18.5 billion. 

February’s outflows were the largest since August 2023 when it saw outflows of $912 million due to redemptions of $650 million from an institutional mandate and net outflows of $205 million from its fund. 

In its half-year financial results for the six months to 31 December, it reported a 10.8 per cent decline in FUM from 30 June 2023. The FUM decline was driven by net outflows of $1.8 billion and negative investment returns of $0.1 billion during the six months. 

In the past year, the firm made a series of people changes to its board and leadership team, including co-founder Andrew Clifford stepping back as chief executive after five years and also from the board, although he remains at the firm as co-chief investment officer. Directors Elizabeth Norman and Andrew Stannard also stepped down from the board at the end of 2023.

Instead, Platinum has appointed Jeff Peters from the US after a global search to take up the chief executive position; he began the role earlier this year. Peters previously led the institutional and international businesses at Columbia Threadneedle and Putnam Investments. 

One of Peters’ first initiatives has been a reset and growth strategy to improve the firm’s declining FUM and share price. Over one year to 8 March, shares in the asset manager are down 38 per cent versus returns of 6 per cent by the ASX 20, although they were up 7 per cent in the past month. 

A short-term phase over the next one to four months – a reset phase – will include alignment of its expense base to current revenue conditions, review of product offering, renewal of client communication strategy, deep examination of its investment platform and review remuneration framework.

A second phase over the next six months – a growth phase – will implement recommendations, build improved product and distribution capabilities through new channels, explore inorganic and organic growth opportunities for diversification and complete back-office outsourcing projects.

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