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 business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Share Fallers

Why Core Lithium, Deterra Royalties, Northern Star, and Opthea shares are dropping

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

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why ASX, Brazilian Rare Earths, Liontown, and Sigma shares are sinking today

These shares are under pressure on Thursday. But why?

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Share Fallers

Why did this ASX AI stock just crash 21%?

Investors just sent this ASX AI stock tumbling by more than 21%. But why?

Read more »

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 Arafura Rare Earths, Bigtincan, Evolution Mining, and Galileo Mining shares are dropping

These shares are having a tough time on hump day.

Read more »

A woman sits with her hands covering her eyes while lifting her spectacles sitting at a computer on a desk in an office setting.
Share Fallers

Why Chalice Mining, Northern Star, Peninsula Energy, and Service Stream shares are sinking

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

Read more »

Investor looking at falling ASX share price on computer screen
Share Fallers

Can the Appen share price recover amid AI mania?

Once an ASX tech darling, Appen has fallen on hard times in recent years. Can it capitalise on the AI…

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Beach Energy, Life360, Viva Leisure, and Wildcat shares are dropping today

These shares are ending 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 Core Lithium, IDP Education, Seek, and Skycity shares are sinking today

These shares are having a very tough session on Thursday. But why?

Read more »