Why is Platinum Asset Management (PTM) share price falling today?
Stock
Platinum Asset Management (PTM) $4.60 as at 8/04/2019
Event
Despite the market running early in the session, the ASX200 is trading over 0.5% higher at the time of writing, market leveraged Platinum Asset Management (PTM) has tumbled as investors digest Friday’s FUM update.
The manager saw net outflows of around $230m for March according to an announcement posted late on Friday, equal to around ~1% of total funds under management. Despite the outflows, FUM grew 0.12% thanks to the investment performance over the month.
This update resigns PTM to its third consecutive month of outflows across its suite of products as under performance starts to drive investors away.
Investors in the headstock have also been concerned with recent sell downs by the Neilson family. Co-founder Kerr Neilson moved from the CEO role to an Executive Director position recently, selling ~$300m worth of PTM on the way, but still owns over $1bn of stock. The remainder of the holding has been placed in voluntary escrow for 12 month, however such a large overhang still concerns many in the market.
Platinum Asset Management (PTM) Chart
Market Matters Take/Outlook
