Platinum Asset Management has recently made strategic moves in talent acquisition, leading to the winding up of BML Funds. The departure of BML’s chief investment officer, Ted Alexander, to join Platinum has triggered this development. With BML Funds managing assets worth $1 billion, the transition signifies a significant shift in the management landscape.

The announcement, made on 25th February, revealed that Ted Alexander would assume the role of portfolio manager for Platinum Asset Management’s Platinum International Fund. This transition involves taking over responsibilities from Andrew Clifford and Clay Smolinski, who are relinquishing their current positions as co-chief investment officers.

During a results webinar, Platinum’s CEO, Jeff Peters, addressed queries regarding the appointment of the new manager. He confirmed that BML Funds would be phased out, including its existing mandates, as Ted Alexander brings his expertise to Platinum with full dedication.

In addition to Ted Alexander, Ying Luo, BML’s portfolio manager, is also set to join Platinum. BML Funds, described as an independent boutique firm managing international asset portfolios, will return the assets to its investors following the decision to wind up operations due to Ted Alexander’s move to Platinum.

In a statement to Money Management, Ted Alexander clarified that the funds managed by BML would be returned to investors, emphasizing that there would be no direct transfer of funds to the Platinum International Fund. He expressed hope that investors would choose to support the Platinum International Fund moving forward.

Furthermore, BML was involved in an administrative role related to Brite Advisors, a global advisory group, under a mandate from the Federal Court. This mandate, not involving active management but rather an administrative function, is expected to conclude following the legal proceedings.

The legal case concerning Brite Advisors, which had its assets frozen by the Federal Court in 2023 due to undisclosed financial positions despite holding an AFSL, is anticipated to conclude in the first half of 2025. Ted Alexander’s transition to Platinum has drawn attention from research firm Morningstar, which noted that his tenure lacks the recognition of his predecessors, potentially causing uncertainty among Platinum’s investors.

Before his tenure at BML, Ted Alexander served as a portfolio manager at Magellan and Orca Funds. Morningstar’s equity analyst, Shaun Ler, highlighted the need for Alexander to demonstrate sustained outperformance and restore confidence among asset consultants, acknowledging the challenges ahead that may not be immediately met.

The shift in talent from BML Funds to Platinum Asset Management underscores the dynamic nature of the financial management industry and the strategic decisions made by key players to enhance their portfolios and expertise.