Platinum (ASX:PTM) share price slumps 8% as FUM declines

The Aussie asset manager's shares have been smashed on Thursday

Man in shirt and tie falls face first down stairs representing falling ASX 200 bank shares today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Platinum Asset Management Ltd (ASX: PTM) share price has been smashed on Thursday following the group's latest full-year results release.

At the time of writing, the Platinum share price is down 8.26%, trading at $4.00.

Platinum share price smashed after FUM declines

Some of the key takeaways from Platinum's results released late on Wednesday include:

  • Average funds under management (FUM) down 2% on the prior corresponding period (pcp) to $23.4 billion
  • Management fee revenue down 4% on pcp to $265.3 million
  • Total revenue up 6% on pcp to $316.4 million
  • Profit before tax up 6% on pcp to $234.2 million
  • Diluted earnings per share up 5% on pcp to 28.2 cents
  • Final dividend of 12 cents per share, meaning a full year, fully franked dividend of 24 cents per share

Investors' reaction to the latest full-year results saw the Platinum share price plummet on Thursday morning.

What happened for Platinum in FY21?

Platinum reported strong absolute return numbers across all of its Platinum Trust Funds in the last year. Some of the top performers include its Brands Fund (+50.6%), Global (long only) Fund (+32.8%) and Health Care Fund (+31.9%). However, the relative performance numbers were a little more mixed.

Both the Brands Fund and Health Care Fund achieved double-digit relative performance. However, the Asia Fund (-1.9%), International Fund (-1.6%) and Technology Fund (-4.7%) struggled on a 1-year, relative basis.

Platinum pointed to "cautious" portfolio positioning to protect clients from downside risk as a key detractor to International Fund performance. The asset manager says market risks remain "elevated" and shorting will be important in some overpriced sectors.

In its analyst briefing, Platinum pointed to avoiding current favourite themes including e-commerce, payments and staples.

The asset manager also said concern about regulatory crackdowns in China created new opportunities and that "out of favour stocks can do well".

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Austal, Beach Energy, Perseus, and Platinum shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Coronado Global, Genesis Minerals, Monash IVF, and Platinum shares are sinking today

These shares are starting the week in the red. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Dateline, DroneShield, Ora Banda, and Pilbara Minerals shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Qantas, Resimac, Tyro, and Soul Patts shares are falling today

These shares are having a tough session today. But why?

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Betr, Evolution, NIB, and West African Resources shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Elders, IDP Education, Life360, and Pilbara Minerals shares are falling today

Let's see why investors are selling these shares.

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Share Fallers

The 5 worst performing ASX 200 shares in May unmasked

These five ASX 200 shares got smashed in May. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Brazilian Rare Earths, Mineral Resources, Pilbara Minerals, and Syrah shares are falling

Why are these shares starting the week in the red?

Read more »