Monthly outflows persist at Platinum
Platinum Asset Management has shared its latest monthly update amid its turnaround strategy, with outflows continuing to impact its funds under management (FUM).
In an ASX announcement, the Australian asset manager provided its FUM update for last month. As of 31 July 2024, Platinum’s FUM sits at $13 billion – the same result as June.
July experienced net outflows of approximately $282 million, including net outflows of $218 million from the Platinum Trust Funds.
While this is larger than in June, it is smaller than significant outflows of more than $1 billion seen in April.
Platinum saw net outflows of $234 million in June and $295 million in May. The firm reported significant outflows of $1.6 billion in April, thanks to institutional redemptions and product rationalisation initiatives.
The firm’s FUM has been on a clear decline over the past 12 months, down from $17.8 billion in July 2023. This represents a $4.8 billion FUM drop to $13 billion in July 2024.
Only one month out of the 12 saw growth in its FUM – which was in February – following the appointment of CEO and managing director Jeff Peters when assets grew from $15.1 billion to $15.5 billion.
Last month, Platinum announced it will merge its two listed investment companies – the $379 million Platinum Asia and $452 million Platinum Capital – with two of its quoted managed hedge funds, following a strategic review.
The firm previously stated: “Over the last couple of years, the board has observed a trend away from closed ended investment vehicles, particularly those that lack sufficient scale to generate the liquidity required to maintain share prices close to the underlying net tangible assets. Unfortunately, [the funds] have not been immune from the effects of this general market sentiment.”
Earlier this year, Peters announced a two-part “growth and reset” turnaround strategy for the company. This includes a reorganisation of the research team, a review of portfolio construction, review of risk management, and an examination of existing products.
In an update last month, the firm stated: “Platinum Asset Management has made good progress on reducing expenses in recent months with turnaround program implementation cash and non-cash costs in the 2024 financial year expected to be broadly in line with the previously announced estimate of circa $21 million.
“Investment gains and other income items (including interest) for FY24 are expected to range between $9 million and $11 million. The company did not earn any performance fees in the second half of FY24.”
AUTHOR
Jasmine Siljic
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