Platinum shares FUM update for FY24
Platinum Asset Management has shared an update on its “growth and reset” turnaround strategy.
In an ASX update, the firm shared a funds under management (FUM) update for the end of June. As of 30 June, the firm said it had $13 billion, down from $13.5 billion at the end of May.
During June, it said the firm experienced net outflows of $234 million, which included net outflows from its Platinum Trust products of $195 million.
This compared to $295 million in overall outflows during May, which came off heavy outflows throughout March and April of more than $1.6 billion thanks to institutional redemptions and product rationalisation initiatives.
Platinum saw its FUM decline for 11 out of the last 12 months in the financial year, down from $17.8 billion in July 2023.
Regarding its turnaround strategy, which was announced in February, this will cover a reorganisation of the research team, a review of portfolio construction, review of risk management, and an examination of existing products.
This month, it said: “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.”
In May, the firm put two of its listed investment companies – Platinum Asia and Platinum Capital – under strategic review to consider how it can build scale and whether it should be converted into open-ended fund structure.
Platinum has said this is still in progress, and it will share an update with the market once it is finalised.
In statements to the ASX for each of the funds at the time, Platinum said: “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.”
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Laura Dew
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