Platinum shares fall after net outflows hit $331m in August
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The news: Shares in Platinum Asset Management dipped at market open after the troubled fund manager recorded heavy outflows in August.
The numbers: Platinum shares lowered 2.1% to $0.92 by 10:45am AEST, having shed more than 30% since January.
The company reported funds under management of $12.23 billion at the end of August, compared to $13.03 billion a month earlier.
Platinum experienced net outflows of around $331 million during the month, including net outflows from the Platinum trust funds of around $288 million.
The context: Last month, Platinum slashed dividends and reported a 44% drop in full-year profit. The decline was driven by client exits and lower performance fees, coupled with a costly turnaround plan that weighed on profits.
Weeks after Platinum’s new CEO Jeff Peters stepped in to succeed Andrew Clifford at the beginning of the year, the company announced a two-step 'reset and growth' turnaround strategy to slash costs, reassess its product lineup and overhaul its investment platform.
In August Platinum chair Guy Strapp said the first part of that plan was almost done so the company was "now moving into the ‘growth’ phase of the program".
The source: ASX announcement
