Platinum regroups after heavy FUM losses
Platinum Asset Management has seen redemptions plateau in May following heavy outflows in the past two months.
Detailing its monthly funds under management (FUM), the firm said FUM fell from $13.7 billion at the end of April to $13.5 billion at the end of May.
However, this was a far smaller decline at 1.4 per cent compared to outflows in March and April.
During March, the firm saw $527 million in outflows, while April saw this figure worsen at $1.6 billion, higher than the firm had initially forecast. This caused FUM to decline from $15.5 billion at the end of February to $13.7 billion by the end of April, a decline of 11.6 per cent.
The outflows were the result of losses from institutional mandates, product rationalisation initiatives and outflows from the trust funds, Platinum said.
Overall monthly outflows in May were $295 million, the majority of which came from its Platinum Trust funds at $246 million. This includes the firm’s flagship Platinum International Fund, managed by Andrew Clifford and Clay Smolinski, which has fallen from $6.2 billion at the end of 2023 to $5.6 billion.
| Month | Monthly net outflows |
| January | $166 million |
| February | $285 million |
| March | $527 million |
| April | $1.6 billion |
| May | $295 million |
Earlier this year, the firm announced a “growth and reset” strategy to focus on improving fee revenue and FUM following the appointment of Jeff Peters from Columbia Threadneedle as its new CEO.
Speaking at the time, Peters said: “I recognise that 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.”
In a shareholder letter, Peters said the strategy will cover:
- A reorganisation of the research function within the investment team to improve its effectiveness.
- A review of how it constructs each portfolio of stocks.
- A review of how it approaches risk management processes, including shorting and cash positions.
- An examination of existing product line features.
Its two listed investment companies, Platinum Asia (PAI) and Platinum Capital (PMC), have also been put under strategic review. The funds’ strategic review will consider options to build scale, including whether it should be converted into an open-ended fund structure allowing investors to trade at or close to net asset value.
AUTHOR
Laura Dew
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