Platinum Asset Management - Funds Under Management and Market Update - 10 July 2024
PTM (PTM) Share Update July 2024 Wednesday 10th
Platinum Asset Management Reports Significant Net Outflows and Market Update
Platinum Asset Management Limited (ASX: PTM) has reported substantial net outflows for June 2024, alongside a detailed market update on their financial performance and cost reduction efforts.
Instant Summary:
- Net outflows of approximately $234 million in June 2024.
- Funds Under Management (FUM) decreased from $13,551 million to $12,969 million post-annual distribution.
- Investment gains and other income items for FY24 expected to range between $9 million and $11 million.
- No performance fees earned in the second half of FY24.
- Turnaround program costs for FY24 expected to be around $21 million.
Funds Under Management (FUM) Details
As of 30 June 2024, Platinum Asset Management Limited reported a decrease in Funds Under Management (FUM) from $13,551 million to $12,969 million post-annual distribution. This reduction includes a cash distribution to unit holders of $146 million, net of reinvestment.
In June 2024, Platinum experienced net outflows of approximately $234 million. These outflows include approximately $195 million from the Platinum Trust Funds. The net outflows do not account for the impact of the distribution to unit holders of $218 million or the distribution reinvestment of $72 million.
Market Update and Financial Performance
Platinum Asset Management has made significant progress in reducing expenses through its turnaround program. The implementation costs for FY24, both cash and non-cash, are expected to align with the previously announced estimate of around $21 million.
For FY24, investment gains and other income items, including interest, are projected to range between $9 million and $11 million. However, the company did not earn any performance fees in the second half of FY24.
Additional Information
The most recent investment performance for funds managed by Platinum can be found on their official website. Investors are encouraged to review these updates to stay informed about the company's performance and strategic direction.
The reported net outflows and lack of performance fees in the second half of FY24 may negatively impact investor sentiment towards Platinum Asset Management. The decrease in FUM and the costs associated with the turnaround program could put pressure on the company's stock price. However, the progress in expense reduction and expected investment gains may provide some relief to investors.
Investor Reaction:
Analysts have expressed concerns about the significant net outflows and the absence of performance fees. Some investors are cautious about the company's future performance, while others remain optimistic about the ongoing cost reduction efforts and potential investment gains.
Conclusion:
Investors should closely monitor Platinum Asset Management's financial performance and strategic initiatives in the coming months. Staying informed about the company's progress in reducing expenses and achieving investment gains will be crucial for making informed investment decisions.