Platinum Remains Positive Despite Net Profit Loss

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While the asset manager posted a loss of 8.6% of funds under management for the year to June 30 and will soon bid farewell to Kerr Neilson, the outlook for the firm is positive.

Platinum posted a 38% net profit after tax loss, down to $101 million. The decline in profits was largely attributed to unrealized losses on seed investments.

Average funds under management fell 8.6% year-on-year to $21.4 billion; at the end of June, it stood at $18.2 billion. This was boosted by markets and outflows of $2.2 billion.

Its financial operating expenses for 2022 decreased to $69.4 million from $71.6 million a year earlier.

Investors will receive a dividend of seven cents per share, bringing full-year dividends to 17 cents per share.

Despite the results, chief executive Andrew Clifford and chief financial officer Andrew Stannard said the business remained resilient and well positioned for future growth, “with a strong position in the Australian retail market and highly differentiated products”.

The pair noted opportunities for the firm in Australia and New Zealand and overseas, such as the upcoming launch of its Australian carbon transition thematic strategy as a dual-entry managed fund structure.

Overseas, the firm will focus on its European, US and Canadian-based funds, with plans to launch a new health sciences sub-fund in October.

The results follow the resignation of non-executive director and Platinum co-founder Kerr Neilson.

“So much has been postponed while I was loading around the world as a fund manager that I now have to fill in the missing pieces,” Neilson said when he left, effective Nov. 16.

“I will miss my close engagement with the Platinum team, but I take comfort in knowing that they have all the ingredients to deliver great results for our clients.”

Neilson said he has no plans to reduce his stake in the company.

Clifford, Chairman Guy Strapp and the Board of Directors thanked Kerr for his “huge contribution, guidance and commitment to Platinum”.

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