ASX Shares Platinum Asset Management (PTM)

Discussion in 'Shares & Funds' started by Zenith Chaos, 4th May, 2017.

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  1. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Why the Platinum Asset Management Limited share price is falling today

    Interested in any opinions on PTM - Platinum Asset Management. Their share price has taken a big hit over the last week with their dividend is almost 7% fully franked.

    They have been losing funds under management (FUM) over recent time as a result of the general move to passive investing and their own average performance. In their announcement they are decreasing management fees which will obviously decrease their income whilst adding a few new products.

    I personally have had money with them through their global fund for a long time. It had its moments but their active investing has underperformed the index. MFF who I have no money with have done extremely well although with such a short time frame to judge I wouldn't necessarily consider them as proven. FUM for MFG have skyrocketed in recent years.

    Is PTM a yield trap or does anyone think it is a reasonable buy?
     
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  2. Redwing

    Redwing Well-Known Member

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    Powerful market forces behind Platinum's fee cuts

    The decision by Kerr Neilson's Platinum Asset Management to slash fees on a range of international managed funds and launch several ASX-listed funds are in response to the powerful forces impacting Australian financial markets.

    These forces are the heightened competition from low-cost, passive investment strategies, the increased power of the big four banks and AMP in distribution, and the international regulatory moves to make all aspects of investing more transparent.

    Neilson, who is one of the country's most successful fund managers over the past 20 years, has cut his base fee from 1.5 per cent to 1.35 per cent and as low as 1.1 per cent when combined with a relative outperformance fee of 15 per cent.

    These fee cuts will have a negative $24 million annualised impact on the revenue earned by Platinum's listed funds management company, which explains why the stock fell about 6.6 per cent on Friday to $4.66.


    One analyst said Platinum would need to bring in about $3 billion in new funds under management to compensate for the fee cuts.



    Read more: Platinum's smart response to market forces
    Follow us: @FinancialReview on Twitter | financialreview on Facebook
     
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  3. filipw

    filipw Member

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  4. filipw

    filipw Member

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    Our mates from Switser have an article on PTM, with an explanation why they think it's a good buy. (Michael McCarthy - stock in the spotlight - going for Platinum). Well worth a read.
     
  5. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Stock in the spotlight: Going for Platinum - The Experts | Switzer

    Interesting but I think it came out before Platinum announced the drop in fees.
     

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