Stock Details
 

Platinum Asset Management Limited ( ASX:PTM)

Threat from Asian Markets and Global slowdown - Platinum Asset Management Limited (ASX: PTM) is the ultimate holding company of Platinum Investment Management Limited. The Group reported Net inflows of $0.9 billion for the period (6 months to December 2017), led by Platinum Trust Funds and were supported by new and overseas products. However, FUM at 31 December 2017 was $27.1 billion and this was up by 19.3 per cent from the 30 June 2017 FUM of $22.7 billion. The Company declared an ordinary dividend of 16 cents per share, fully-franked (31 December 2016: ordinary dividend of 15 cents per share). The Company issued Deferred rights (not quoted) which were allocated under the Platinum Asset Management Limited Deferred Bonus Plan (Plan) to receive an equivalent number of the Company’s shares and upon exercising these rights employees will receive ordinary shares in the Company. The Company released 1,241,740 Deferred Rights. There was a growth of 2.77 per cent in the Funds Under Management from March 2018 to April 2018 but funds under management decreased by 0.90 per cent from April to May 2018 and as on 31 May 2018, FUM amounted to $27,748.2 million.


Platinum International Fund regional exposure (Source : Company Reports)

The Company recently announced that Mr. Andrew Clifford, co-founder and Chief Investment Officer of the Company would be appointed as the new Chief Executive Officer (Managing Director) of the Company and has taken his responsibilities with effect from 1 July 2018. Since one month, the stock price was down due to the threat looming from Global trade war as Trump is imposing heavy tariffs on Chinese goods. Further, Asian markets, in general, have been under heavy pressure as Platinum’s funds are heavily invested in the region. The stock slipped by 8.85 per cent as on 4 July 2018 and was trading at $5.35. So as of now, the stock can be avoided due to the weakness in the international markets.
 

Magellan Financial Group Limited (ASX:MFG)

Growth in Funds Under Management- Magellan is an expert that invests globally and invests in the world’s best companies to grow and safeguard the wealth of its clients. It has developed a track record for creating and safeguarding wealth for its investors. The Group confirmed that a replacement Executive Employment Agreement (‘Agreement’) has been negotiated and agreed between Magellan Asset Management Limited (a controlled entity of MFG) and Mr. Hamish Douglass and this replacement Agreement was executed by the parties on 2 July 2018 and will have effect from 1 July 2018 for a three year period. According to the Board, the revised remuneration arrangement is fair and is in the interests of both clients in the global equity strategy and shareholders of the Company. Over the six months, the company announced two strategic acquisitions i.e., with Frontier Partners in the United States and Airlie Funds Management, aiming to diversify and strengthen its retail funds management business in Australia and add significant focus to its institutional distribution activities in North America. There an increase in FUM from A$66,199 on as 30 April 2018 to A$67,354 as on 31 May 2018 and reflected a growth of 1.74 per cent.


Fund Performance for May 2018 (Source: Company Reports)

The Group experienced net outflows of $47 million, which included net retail outflows of $57 million and net institutional inflows of $10 million as on 31 May 2018. While in April, Magellan experienced net outflows of $268 million, which included net retail outflows of $64 million and net institutional outflows of $204 million. Moreover, the Group reported an increase of 25 per cent in the underlying net profit after tax for the period of six-months ending on 31 December 17. The interim dividend increased by 16 per cent and amounted to 44.5 cents and MFG also changed its dividend policy and started paying performance fees as a performance fees dividend with the final dividend. Its capital management approach will remain intact in the coming years. The stock has been rising up since three months and was up  by 1.67 per cent in last five days as on 3 July 2018. The stock slipped by 6.40 per cent as on 4 July 2018 with global macroeconomic trend. We maintain a “Buy” recommendation at the current market price of $22.21.

 
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