Platinum Asset Management Limited (ASX: PTM) held its Annual general Meeting on 15 November 2018 following which the share price of the company decreased by 0.616 percent. At the Annual General Meeting, the chairman of the company discussed about the Company’s performance for FY 2018 and for the first few months of FY 2019.
The Chairman informed that in FY 2018 the company performed well both in terms of investment returns and net fund inflows. All of the company’s Platinum Trust Funds and the Platinum Global Fund delivered double digit returns in FY18, and 7 of those 9 funds delivered returns of more than 14 percent over the same period. At the end of FY18, the Funds Under Management (FUM) was around $25.7 billion which is an increase of 13.1 percent as compared to the FUM of last year. The strong investment performance of the company’s funds contributed approximately $3.5 billion to FUM and the Net fund inflows contributed approximately $1 billion. In the annual report of the company, the director has advised that the company’s FUM is well positioned to grow over time through the increasing trend for Australian investors to increase their exposure to world stock markets, and through increased distribution and marketing activity targeting offshore clients.
In FY18, the revenues increased by 5 percent to $328.7m, mainly due to the increase in the average FUM of 13 percent to $26.4bn. The increase in the revenue was also due to the performance fees and additional gains from Platinum’s seed investments. The solid increase in revenue was largely offset by the increase in expenses and the profit after tax attributable to members increased by 2 percent to $189 million in FY 2018.
In FY 2018, the company appointed Ms. Brigitte Smith and Mr. Tim Trumper as additional non-executive and independent Directors to the Board. Ms. Brigitte is having 20 years of experience in venture capital; business strategy and start-up company operations and he has previously worked in the US and Australia in operating roles. Mr. Tim is having a lot of experience in diverse sectors including artificial intelligence and machine learning, big data, digital transformation and he has been non-executive director, a former CEO, and an advisor for high-performance global and Australian companies.
While discussing about the outlook for FY 2019, the chairman highlighted that at the end of October month, Platinum FUM was $24.7bn which is a decrease of 4 percent from 30 June 2018, mainly due to weaker investment returns. Due to the uncertainty around short term stock market performance and investor sentiment, the company has not released an earning forecast for FY 2019.
In the last six months, the share price of the company decreased by 20.81 percent as on 14 November 2018, and traded at a PE level of 15.050x. PTM’s shares traded at $4.840 with a market capitalization of Circa $2.86 billion as on 15 November 2018 (4:00 PM AEST).
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