Platinum suffers further outflows in August
Platinum Asset Management’s funds under management (FUM) was $12.23 billion at the end of August, down from $13.03 billion in July.
In an ASX listing on 9 September, the firm said it experienced net outflows of $331 million during the month, with most outflows – some $288 million – stemming from the Platinum Trust Funds.
The firm has steadily seen a decrease in monthly outflows after $1.65 billion came out of the business over March and April on the back of institutional mandates and product rationalisation initiatives.
Last month, Platinum said its “contrarian” investing approach faced a difficult environment in FY2023–24.
Platinum Asset Management recorded statutory net profit after tax (NPAT) of $45.1 million for the year ended 30 June 2024, down 44.2 per cent from the prior corresponding period, while its FUM slumped 25.2 per cent to $13 billion over the financial year.
“We recognise that it has been a challenging year for the company and consequently our shareholders,” Platinum chair Guy Strapp said at the time.
“Recognising the need for change, in August 2023, we announced that Andrew Clifford would step aside as managing director and chief executive officer whilst the board embarked on a search for Andrew’s replacement.
“Following an extensive international search, we were pleased to welcome Jeff Peters to the role of CEO in January 2024, bringing with him deep asset management and turnaround experience,” Strapp said.
Shortly after Peters’ appointment, Platinum announced its “turnaround program”, which included measures to reduce costs and “right size” the business.
In a letter to shareholders last month, Peters said it has been a difficult environment for Platinum’s “contrarian approach to investing”.
“The 12 year-long bull market has generated strong client interest for passive investment products over actively managed investments, and flows have favoured ‘growth-style’ funds, which tend to generate strong relative performance in these bull markets,” Peters said.
“We believe this growth-style of investing could be challenged in the near term, as recent market corrections have indicated, and it is for this reason that we believe our investment approach will be rewarded over the course of the cycle.”
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
