The Platinum Asset Management Ltd (ASX: PTM) share price will be on watch on Monday after the release of its funds under management (FUM) for the month of February after the market close on Friday.
How did Platinum perform during February?
According to the release, Platinum continued to experience fund outflows during February.
At the end of the month, Platinum's FUM was $23,785.39 million. This was a 3.5% reduction on the end of January's FUM of $24,649.15 million
This was driven by a combination of unfavourable market movements following the coronavirus outbreak and net outflows of approximately $372 million. These net outflows include approximately $321 million from the Platinum Trust Funds.
As a comparison.
Platinum wasn't the only investment company releasing its FUM update last week.
Rival Magellan Financial Group Ltd (ASX: MFG) also released its monthly FUM update, which revealed the same level of decline.
At the end of February Magellan's total FUM stood at $100,650 million, which was down 3.5% since the end of January. This comprised of retail FUM of $27,345 million and institutional FUM of $73,305 million.
However, Magellan's decline was driven purely by unfavourable market movements during the month, which were partially offset by the continued inflow of funds.
According to the release, Magellan experienced net inflows of $453 million in February. This included net retail inflows of $60 million and net institutional inflows of $393 million.
This went down well with investors, leading to its shares shooting higher on the day it released its update.
Though, the big test for both these companies will be the current month. This is both in respect to their performances and fund inflows. Given the market volatility we are experiencing at the moment, I wouldn't be surprised to see both companies report fund outflows for the month if the market doesn't settle in the near future.
