Platinum shares fall as analysts downgrade Platinum Asia Fund
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The news: Shares in Platinum Asset Management lowered on the ASX as Morningstar analysts downgraded the equity manager's separately listed Platinum Asia Fund following the departure of Andrew Clifford from managing the fund.
The numbers: Platinum Asset Management shares were down 4.8% to $1.08 by 2:30pm AEST and over the last 12 months has plummeted 38.46%.
Meanwhile, Platinum Asia climbed 1.1% to $4.40 by 2:30pm AEST.
The context: Morningstar analysts downgraded the Platinum Asia fund from 'bronze' to 'neutral', explaining that that recent portfolio manager changes "reduced our conviction".
Analysts noted that a major team restructure last month saw the removal of Platinum Asset Management's co-CIO and co-founder Andrew Clifford from direct involvement in the Platinum Asia's strategy, which has been transitioned into a sole portfolio manager model under Cameron Robertson.
The analysts said they have "yet to gain conviction in his [Robertson's] abilities as a sole portfolio manager", not helped by his tenure coinciding with "a period of Platinum's contrarian style being mostly out of favour."
"Overall, this is an investible strategy for investors seeking dedicated Asian exposure, but given the team restructure our preferences now lie elsewhere," the analysts said.
They added that a cost-driven headcount reduction in the overall team is "disappointing", leaving them more cautious on their overall view of Platinum Asset Management as a parent.
Analysts said they were also cautious regarding the impact of cost reductions and restructuring across the broader group. However, Morningstar did not change their rating on Platinum Global Fund as Clay Smolinski remained the sole lead portfolio manager which was unchanged following the team restructure.
The source: Morningstar research
