Platinum falls after losing $958m institutional mandate
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More news: Shares in Platinum Asset Management were almost 5% lower in early afternoon trade after the fund manager reported the termination of a large institutional mandate of about $958 million.
The loss is expected to further drag down Platinum's funds under management in May after it posted a drop from $10.3 billion to $9.6 billion in April.
Platinum sees outflows in April, flags $958m mandate loss in May
The news: Fund manager Platinum Asset Management has reported a drop in funds under management in April and expects a bigger hit in May after termination of a large institutional mandate.
The numbers: Platinum reported net outflows of $243 million in April, with the Platinum Trust Funds accounting for a bulk of this. As a result, funds under management decreased to $9.6 billion on 30 April, from $10.3 billion at March-end.
Platinum shares are down 1.1% to 66 cents in early trading on the ASX.
The context: The fund manager flagged a bigger impact for May after the group this week received a notice of termination of a large institutional mandate of about $958 million.
“The impact to profit of the related loss of revenue will be offset by an acceleration of planned cost savings to be delivered in FY26,” Platinum told investors.
The announcement comes after rival L1 Capital last week cornered a hefty stake in Platinum and said it is in discussions on a potential merger of the two investment firms. Platinum in February reported a 55% fall in first-half net profit and has been plagued by outflows in recent months.
The source: ASX
