PTM Details

Sale of PAI shares by investment manager: Recently, Platinum Asia Investments Limited’s (PAI) investment manager and cornerstone investor, Platinum Investment Management Limited (PIML) has sold 21.325 million shares at $1.00 per share, and has exercised 21.325 million options at the exercise price of $1.00, thus maintaining its cornerstone investment of 50 million shares in PAI. During May-2017, Funds Under Management (FUM) grew by 1.8% Month-over-Month (MoM) to $24,398.0 million against 3.4% growth in April-2017.

Launch of exchange traded funds: Recently, the company announced the launch of new Exchange Traded Managed Funds (“ETMFs”) and changes to product fees. The group will launch two Exchange Traded Managed Funds (ETMFs) in August 2017 as part of the strategy to help investors to access Platinum’s International and Asian equity strategies via the ASX. These new products will be structured as feeder funds into the existing unlisted Platinum International Fund and Platinum Asia Fund respectively, therefore they will have the same portfolio composition, portfolio managers and investment strategy as the underlying funds. Further, the group has lowered the standard management costs on the Platinum Trust Funds and Platinum Global Fund from 1.5% to 1.35% pa to benefit clients with regards to channel choice and price options. However, the current fee and cost reductions are not expected to impact FY17 revenues or profit as it will not come into effect until 3 July 2017, but are expected to lower PTM’s 2018 revenue.

The stock has fallen by 13.01% and 27.2% over the past six months and twelve months respectively owing to subdued growth in revenue in line with the weak growth FUM and management fee coupled with intensifying competitive environment. However,we expect that the company to recoup the steam driven by long-term focused efforts, and maintain a “Buy” recommendation at the current price of $ 4.67

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