Platinum Asset Management (PTM) H2 2024 earnings summary

Executive summary

• FY24 focused on executing a turnaround plan, with progress in cost reduction, product simplification, and investment platform enhancements.

• Funds under management (FUM) closed at AUD 13 billion, down 25% year-over-year, with 70% retail and significant net outflows from both retail and institutional channels.

• Fee revenue declined 13% due to a 15% drop in average FUM, partially offset by a higher average fee rate.

• Major organizational changes included team restructuring, product rationalization, and a new client engagement strategy.

• A new growth strategy was announced, focusing on product innovation, partnerships, and leveraging a strong balance sheet.

Financial highlights

• FUM at AUD 13 billion, 70% retail, with net outflows of AUD 4.9 billion.

• Management fee revenue down over AUD 27 million year-over-year due to lower average FUM; management fees at AUD 174.4 million (down 13%).

• Statutory net profit before tax AUD 73.1 million (down 37%); profit after tax AUD 45.1 million (down 44%), impacted by AUD 20 million in turnaround costs.

• Final fully franked dividend of AUD 0.04, full year AUD 0.10, yielding 9.6%.

• Cash and term deposits at AUD 250 million; seed investments at AUD 64 million.

Outlook and guidance

• Growth strategy includes launching new Platinum-managed products and a new sub-advisory business line (Partner Series) to diversify asset classes.

• First Partner Series fund expected in early 2025; ongoing product development and commercialization of a new hedge fund strategy.

• Turnaround program is on track, with 136% of FY24 cost reduction target delivered and 80% of FY25 target already captured.

• Focus on stabilising flows, improving investment returns, and enhancing client engagement.