The market was hoping for something big from Platinum Asset Management’s latest half-year result, but it didn’t get it and has marked the stock down 16%. In fact, net profit actually fell 4% on a 4% rise in revenue due to an absence of performance fees (down from $24m, or 15% of revenue, in the prior period, thereby almost offsetting the 15% rise in management fees due to higher funds under management), cost increases and an increase in the company’s tax rate from 25% to 28%.
Absence of performance fees offsets rise in management fees
Costs and tax rate higher
Upgrading back to Hold