The Aussie asset manager’s shares have been smashed on Thursday
The post Platinum (ASX:PTM) share price slumps 8% as FUM declines appeared first on The Motley Fool Australia. –
At the time of writing, the Platinum share price is down 8.26%, trading at $4.00.
Platinum share price smashed after FUM declines
Some of the key takeaways from Platinum’s results released late on Wednesday include:
Average funds under management (FUM) down 2% on the prior corresponding period (pcp) to $23.4 billion
Management fee revenue down 4% on pcp to $265.3 million
Total revenue up 6% on pcp to $316.4 million
Profit before tax up 6% on pcp to $234.2 million
Diluted earnings per share up 5% on pcp to 28.2 cents
Final dividend of 12 cents per share, meaning a full year, fully franked dividend of 24 cents per share
Investors’ reaction to the latest full-year results saw the Platinum share price plummet on Thursday morning.
What happened for Platinum in FY21?
Platinum reported strong absolute return numbers across all of its Platinum Trust Funds in the last year. Some of the top performers include its Brands Fund (+50.6%), Global (long only) Fund (+32.8%) and Health Care Fund (+31.9%). However, the relative performance numbers were a little more mixed.
Both the Brands Fund and Health Care Fund achieved double-digit relative performance. However, the Asia Fund (-1.9%), International Fund (-1.6%) and Technology Fund (-4.7%) struggled on a 1-year, relative basis.
Platinum pointed to “cautious” portfolio positioning to protect clients from downside risk as a key detractor to International Fund performance. The asset manager says market risks remain “elevated” and shorting will be important in some overpriced sectors.
In its analyst briefing, Platinum pointed to avoiding current favourite themes including e-commerce, payments and staples.
The asset manager also said concern about regulatory crackdowns in China created new opportunities and that “out of favour stocks can do well”.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.