Platinum Asset Management
Recommendation
Platinum Asset Management has made a couple of announcements this week, the first relating to its annual general meeting on Monday and the second updating on its funds under management at the end of October.
At the AGM, chairman Michael Cole noted that profit before tax for the September quarter was $42.5 million, down 16% on the prior comparable period, reflecting the 12% fall in average funds under management between the two periods. Not surprisingly, given the relatively poor performance of Platinum’s funds recently, any performance fees in the current half are expected to be ‘negligible’.
There was, however, some good news, in the form of a $700m mandate from an Australian superannuation provider.
Funds under management fell 3.4% in October, to $14.6bn, a fair bit worse than the 0.8% fall in the MSCI World index. But the new $700m mandate should see a pick-up in November. The stock is barely changed since our last review on 17 Aug 12 (Hold – $3.69). HOLD.
Note: The model Growth and Income portfolios own shares in Platinum Asset Management.