Platinum Asset Management

Platinum Asset Management
Company typePublic
ASX: PTM
S&P/ASX 300 component[1]
IndustryInvestment management
Founded1994; 30 years ago (1994)
FoundersKerr Neilson
Andrew Clifford
Elizabeth Norman
Toby Harrop
Headquarters
7 Macquarie Place, Sydney, New South Wales
,
Australia
Key people
Andrew Clifford (CEO)
ProductsMutual Fund
Hedge fund
Listed investment company
UCITS
RevenueDecrease A$252.67 million (FY 2022)
Decrease A$101.49 million (FY 2022)
AUMDecrease A$17 billion (Q3 2022)
Total assetsDecrease A$349.76 million (FY 2022)
Total equityDecrease A$323.56 million (FY 2022)
Number of employees
110 (Q2 2021)
Websiteplatinum.com.au
Footnotes / references
[2][3]

Platinum Asset Management is an Australian asset management company. It has been publicly traded on the Australian Securities Exchange since 2007.[4] It is a constituent member of the S&P/ASX 300 index. In 2015, it was ranked as the largest hedge fund group in Australia as well as the second largest in Asia-Pacific.[5]

It has two investment companies listed on the Australian Securities Exchange which are Platinum Capital Limited (ASX: PMC) and Platinum Asia Investments Limited (ASX: PAI). In addition it has three listed funds which are Platinum International Fund (ASX: PIXX), Platinum Asia Fund (ASX: PAXX) and Platinum Global Transition Fund (ASX: PGTX).[6]

History

In 1994, Platinum Asset Management was founded by Kerr Neilson and several others with the financial backing of George Soros.[7] It was founded as a specialist company in international equities.

The success of the company was attributed to the ability to transcend short-term market investment and focus on long-term returns. Its strongest performance came between 2000 and 2002.[8]

In 2007, Platinum Asset Management went public and was listed on the Australian Securities Exchange under the ticker: 'PTM'.[4]

Poor results during the 2012 financial year resulted in a 16 per cent fall in net profit, mainly due to a 14 per cent reduction in investment income. As a result, Neilsen agreed to forego a performance bonus, an increase in his base salary, and neither granted himself nor exercised options.[9]

In 2018, Neilson stepped down as chief executive officer and was replaced by Andrew Clifford who was another co-founder of the company.[8][10] In November 2022, Neilson resigned from his position at the company's board of directors although he still remained the company's largest shareholder.[11]

In February 2023, Neilson called for Clifford to resign citing the firm's poor performance and how Clifford shouldn't hold the role of both CEO and CIO simultaneously.[12] In August that year, the board of directors announced that Clifford would step down from his role as CEO once a successor was found although he would remain as CIO.[13]

On 8 September 2023. shares of Platinum Asset Management hit a record low of A$1.335 after more than A$900 million was pulled from its funds in August. According to a report by Barrenjoey Capital Partners, the company was in "severe organic decay".[14]

See also

References

  1. ^ "ASX 300 List - Data for ASX Top 300 Companies". www.asx300list.com.
  2. ^ "Annual Report 2022" (PDF). Platinum Asset Management.
  3. ^ "About Platinum - Platinum Asset Management". www.platinum.com.au.
  4. ^ a b "Platinum Asset Management shines on ASX". The Sydney Morning Herald. 23 May 2007.
  5. ^ "Asian hedge funds surpass pre-crisis peak". www.fundsglobalasia.com. Retrieved 2 July 2023.
  6. ^ "Platinum Asset Management Ltd, PTM:ASX profile - FT.com". markets.ft.com. Retrieved 16 April 2021.
  7. ^ "Taking a punt proves Platinum's mettle". The Age. 28 December 2003. Retrieved 16 April 2021.
  8. ^ a b "Platinum Asset Management". thehedgefundjournal.com. Retrieved 2 July 2023.
  9. ^ Evans, Michael (17 August 2012). "Neilson axes bonus after hit at Platinum". The Sydney Morning Herald. Retrieved 1 September 2012.
  10. ^ Stewart, Tim (22 February 2018). "Platinum's Kerr Neilson steps down as CEO". www.investordaily.com.au. Retrieved 16 April 2021.
  11. ^ "Sharemarket addict Kerr Neilson farewells Platinum". Australian Financial Review. 16 November 2022. Retrieved 8 September 2023.
  12. ^ "Kerr Neilson says Platinum CEO Clifford must go". Australian Financial Review. 19 February 2023. Retrieved 8 September 2023.
  13. ^ "Why Andrew Clifford and David George are the last rock star CIOs". Australian Financial Review. 27 August 2023. Retrieved 8 September 2023.
  14. ^ "Platinum in 'severe organic decay' after $900m of outflows". Australian Financial Review. 8 September 2023. Retrieved 8 September 2023.