Platinum Asset Management reported a significant decline in its Net Profit After Tax (NPAT) by half to $15.9 million in the first half of FY25, primarily due to retail outflows amounting to $1.6 billion. The company also experienced a decrease in funds under management (FUM) from $13 billion to $11.1 billion, attributed to the $2.5 billion net outflows, partially offset by positive investment returns of $589 million.

Throughout the 2024 calendar year, Platinum faced substantial outflows, although the trend eased slightly in the first half of FY25, particularly in the institutional sector. Institutional outflows decreased from $940 million to $821 million, whereas retail outflows surged from $813 million to $1.6 billion, partly influenced by Regal Partners’ acquisition interest.

The firm acknowledged that the rise in retail outflows included some one-off events following Regal Partners’ offer and reflected challenges in investment performance compared to the market index. Consequently, the company’s NPAT plummeted from $35.6 million to $15.9 million, mainly due to lower management fees resulting from reduced FUM volume and implementation costs associated with the business restructuring.

Platinum Asset Management unveiled plans for cost reductions of $25 million as part of its growth and reset strategy. Additionally, the company is set to introduce a global equity small-cap product managed by GW&K Investment Management, marking the initial offering under the Platinum Partner series launched in the previous year. This initiative aims to provide clients exclusive access to high-performing global institutional managers with limited presence in the Australian market, intending to expand the firm’s offerings over the next three years.

GW&K Investment Management, based in Boston and overseeing assets exceeding US$52 billion, specializes in US and global small-cap equities and municipal bonds. Moreover, Platinum plans to launch an internally managed long-short global equity strategy, named Arrow Trust, in the second quarter of 2025, targeting institutional clients and high-net-worth mandates with an objective of achieving an absolute return of cash +5% while maintaining low correlation with global equity markets.

In a statement, Platinum expressed optimism about its ongoing transformation, emphasizing the revitalization of leadership and the introduction of new products to enhance investment performance and broaden client access to innovative opportunities. The company also announced changes in key positions, with Andrew Clifford and Clay Smolinski stepping down from their co-chief investment officer roles to revamp the flagship Platinum International Fund, which will now be managed by Ted Alexander.