Platinum Asset Management has announced a “turnaround is required and underway” as it battles with net outflows and declining revenue.
In an ASX statement, Jeff Peters, who took over as chief executive in January, said it has a two-part program to address the difficulties.
In its half-year financial results for the six months to 31 December, it reported a 6.9 per cent decline in fee revenue and 10.8 per cent decline in funds under management (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.
Over one year to 29 February, shares in the firm are down 42.7 per cent versus gains of 6 per cent by the ASX 200.
As a result, it has announced today a reset and growth strategy to improve the business.
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.
Peters said: “I recognise the market and competitive environments are difficult and that this affects us, our clients and our peers. It has been a difficult year so far at Platinum. We have seen net outflows, declines in revenue, and our investment performance is not where we would like it to be for our clients. Change is necessary and, while we have a full agenda, I am confident we can get it done.
“The reasons I joined Platinum – the brand, the talent of our investment and senior teams, the legacy of success here in Australia – these things are all still here. We must capitalise on them and improve where we can, and then we will be well on the way to revitalising Platinum for our clients and shareholders.”
