What happened to Platinum share price?
In an analysts’ briefing this morning, Platinum Asset Management Ltd [ASX:PTM] confirmed Andrew Clifford, Chief Investment Officer and Co-Founder, will be appointed CEO to replace outgoing Kerr Neilson.
Neilson noted that he intends to spend more time supporting the investment team; the company states that he will continue as a full-time executive director.
The decision, made formal this morning, had the effect of wiping $600 million from the group’s market cap, with shares falling 13%.
At time of writing, the share price has recovered slightly to $6.88, representing a drop of 12.02% for the day.
Today’s briefing also highlighted once again the company’s financials, which were released to the market after close yesterday.
Earnings per share had increased 13% on 2HFY17, and 7% on 1HFY17.
Total funds under management increased 19% from the previous half, up to AU$27.1 billion.
Platinum offers strictly international equity portfolios and has in recent times steered away from the US, with dedicated funds operating across the Asia Pacific and Europe.
Platinum says it is in a strong position in the Australian retail market, putting its investing style as the main differentiator. Global growth is forecasted to continue widening the stock dispersion window, which will favour Platinum’s active management strategy.
With respect to his transition, Neilson said:
‘I will continue to work here full time and what I’m going to try to do is specialise a little more, spend time with the investment team and try to mentor some of the newer comers.’
The company announced an interim fully franked dividend of 16 cents to be paid on 19 March.
Since this time last year, investors have seen a 39.6% increase on Platinum’s stock.
Editor, Money Morning
Junior Analyst, Money Morning
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