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3.88%

$1.07 platinum asset management limited

"The indicator is weighted towards long term performance but...

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Sojourner

6,521 Posts.

1923

25/07/17

13:24

Post #: 26063805
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Originally posted by Sojourner ↑

I am expecting the tide to change and the flow of funds to start coming in over the next 12 months.

Financial advisors and their clients are like sheep heavily influenced by recency bias. Platinum not that long ago was underperforming in the 1, 3 and 5 yr benchmarks compared to other major funds like Magellan. The flow of funds turned against them as a result.

Now that the recent outperformance is filtering through, along with the cut in fees, I 'd expect that the flow money will start to follow.

Look at PTM's performance history and flow of funds and you'll see the same pattern... recent underperformance leads to more outflows, recent outperformance leads to more inflows. The indicator is weighted towards long term performance but short-medium term performance. The worst part about it for investors is that they are likely to switch strategies at the worst possible time - after the horse has bolted.

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"The indicator is weighted towards long term performance but short-medium term performance."

Meant to say that the indicator is weighted towards short-medium term performance rather than long term performance. Financial advisors and their advisors are heavily influenced by recency bias, not performance over the long term.

PTM Price at posting: $5.50 Sentiment: Buy Disclosure: Not Held
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(20min delay)
Last $1.07		Change 0.040(3.88%)		Mkt cap ! $622.9M

Open	High	Low	Value	Volume
$1.04	$1.07	$1.04	$1.691M	1.592M

Buyers (Bids)

No.	Vol.	Price($)
1	2501	$1.07

Sellers (Offers)

Price($)	Vol.	No.
$1.07	23139	7

View Market Depth

No.	Vol.	Price($)
1	2501	1.065
4	24891	1.060
3	20367	1.055
2	30520	1.050
3	10305	1.045

Price($)	Vol.	No.
1.070	23139	7
1.075	39870	5
1.080	111166	9
1.085	119136	5
1.090	175892	8

Last trade - 16.10pm 31/07/2024 (20 minute delay)

PTM (ASX) Chart