Platinum Asset Management has reported net outflows for 11 out of the last 12 months, seeing funds under management (FUM) fall by almost $1 billion.
At the end of June 2022, the firm had $18.2 billion in FUM and this had fallen to $17.3 billion at the end of June 2023.
The highest month of outflows was seen in November 2022 when the firm saw net outflows of $365 million that included a $200 million redemption by an institutional investor from the Platinum Asia Fund.
Most recently, it saw net outflows of $232 million in June that includes net outflows from the Platinum Trust Funds of $162 million.
These exclude the impact of distribution to unit holders of $566 million or the distribution reinvestment of $156 million, the firm said.
The only month in the financial year that reported inflows was July 2022 when it saw net inflows of $22 million.
Performance improved in the second half with the firm ending the year with estimated performance fees of $1 million. It had previously flagged it expected performance fees to be “insignificant” at the end of 2022.
However, the estimated $1 million sum was far less than the $6.7 million in the previous financial year.
Its flagship $6.6 billion Platinum International Fund has returned 13.9 per cent over 12 months to 30 June versus returns of 20.4 per cent by the MSCI All Country World Index (ACWI).
Looking at its financial results, the firm said it expected profit after tax to be between $77 million and $82 million.
“Platinum currently expects 2023 financial year profit after tax to be broadly in line with consensus estimates (which range from $77 million to $82 million) but with lower performance fees and higher expenses (due to variable compensation costs arising as a result of strong investment performance for the year ended 31 March 2023), being offset by higher investment-related income arising from seed investment,” it said.
This compared to an underlying profit after tax in the FY21–22 results of $118 million, a 10.9 per cent decrease on the previous year, while performance fee revenue was $6.7 million. Total revenue decreased by 6.2 per cent to $252.7 million.
