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.
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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".
