Ann: Funds Under Management - January 2024, page-41

@Jack1960

I admire your conviction and appreciate your financial analysis of the company. However, I also believe @bradish has a point.

Compared to Platinum’s heyday in the 1990’s and 2000’s, there is now fierce competition for the investor $$ in the marketplace.

As an active manager PTM has to start outperforming the indices otherwise they are going to get excluded from any filter over a 1-year, 2-year, 3-year, 5-year basis.

This is not just about the flagship International Fund, all of the funds no matter what sector or region have underperformed over most of these periods.

As an advisor or retail investor > why would you invest with Platinum at this point in time, or even within the next 12 months? There are so many other options available.

Until performance improves across the board, then FUM is going to continue to go down. And where the FUM goes, the share price will follow.

On the takeover front > the Neilson’s still own over 20% of PTM. My thoughts on Kerr is that his personal financial position is quite sound, and he doesn’t need to cash out and sell the company, and might be too proud to do so anyway. This is his baby after all.

So while PTM could be a value play, it’s is certainly far from an easy takeover target.

They can “stick to style” and be “true to label” all they like, but they also need to beat the index at some point to justify a 1.35% pa. management fee.
In contrast, other asset managers are growing their FUM and innovating with new products.
Just my thoughts.. not investment advice.