Ann: Funds Under Management - March, page-2

It may be a very ugly day for PTM tomorrow.

This month's heavy losses resulted more from negative fund performance than redemptions. That probably means redemptions will follow in the near term, accelerating the downward trajectory of FUM.

Having closely scrutinised the International Brand Fund and Health and Biotech fund one can clearly identify the heavy exposure to Chinese stocks has savaged returns. Their story may say that these stocks were sold "indiscriminately" but so what, they were sold and proved to be not safe or defensive positions.

I will admit that my long held support of the PTM investment process has waned, as has my trust in the news we were told.

Not 1 week ago, the PTM webinar presentation exuded confidence, diligence and hubris in the Platinum process. At no point was any indication given that March was to be a total disaster. That was deceptive and not appreciated. Honesty and explanation would have served their interests better.

It is possible the SP will breach the $2 mark over the short term. 2 weeks ago I would have loaded up, now I am not so sure. China is not a safe haven, and valuations are low for a reason. Irrespective of this, PTM went in boots and all, bottom fishing. Now they themselves are the prey of bottom fishers.

The last 6 months have exposed poor analysis and good communication from this fund manager. Investors and shareholders are now paying the price.

Although my buy sentiment is retained, it is now under close scrutiny as underperformance may be much longer than I anticipated. It is a kick in my own bum, that I was too confident in a mob sticking to its knitting and too believing that honesty was their hallmark.

Shame on me.

GLTASH