In a listing on the ASX on Monday, the company said it had net outflows of $331 million during the month, with most of the outflows – some $288 million – coming from the Platinum Trust Funds.
The company saw a steady decline in monthly outflows after $1.65 billion was removed from its operations in March and April through institutional mandates and product streamlining initiatives.
Last month, Platinum said its “contrarian” investment approach faced a challenging environment in the 2023-2024 financial year.
Platinum Asset Management reported statutory net profit after tax (NPAT) of $45.1 million for the financial year ending June 30, 2024, down 44.2% from the previous corresponding period, while its FUM fell 25.2% to $13 billion for the fiscal year.
“We recognize that this has been a difficult year for the company and, therefore, for our shareholders,” Platinum Chairman Guy Strapp said at the time.
“Recognizing the need for change, we announced in August 2023 that Andrew Clifford would step down as Managing Director and CEO while the Board embarked on the search for a replacement for Andrew.
“Following an extensive international search, we were pleased to welcome Jeff Peters as CEO in January 2024, bringing with him deep asset management and turnaround experience,” Strapp said.
Shortly after Peters’ appointment, Platinum announced its “turnaround program”, which included measures to reduce costs and “right-size” the business.
In a letter to shareholders last month, Peters said the environment was challenging for Platinum’s “contrarian approach to investing.”
“The 12-year bull market has generated strong client interest in passive investment products rather than actively managed investments, and flows have favored growth-type funds, which tend to generate strong relative performance in these bull markets,” Peters said.
“We believe that this style of growth investing could be challenged in the near term, as recent market corrections have indicated, and it is for this reason that we believe our investment approach will be rewarded over time. course of the cycle.”
