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Platinum reveals further fund outflows in January

James Mickleboro
Losing Money

The Platinum Asset Management Ltd (ASX: PTM) share price will be one to watch on Monday when the market reopens.

After the market close on Friday the asset manager released its latest funds under management update for the month of January.

How did Platinum perform in January?

Unfortunately for its shareholders, Platinum had another disappointing month in January.

According to the update, despite a strong month for global share markets, Platinum’s funds under management fell 1.9% month on month to $24,649.15 million.

This was driven by net outflows of $254 million during the month. The net outflows included $176 million from the Platinum Trust Funds.

Investors appear to be pulling money out due to the underperformance of some of its key funds.

The Platinum International Fund, for example, has recorded a decline of 1.7% over the last month. Whereas the benchmark MSCI AC World Net Index (A$) has recorded a gain of 3.8% over the same period.

Where are the funds going?

Judging by recent updates from rival Magellan Financial Group Ltd (ASX: MFG), I wouldn’t be surprised if investors were switching over to its funds.

In January Magellan experienced net inflows of $414 million. This included net retail inflows of $156 million and net institutional inflows of $258 million.

Combined with favourable market movements, this led to Magellan’s funds under management climbing to $104,311 million. This was a 6.8% increase since the end of December when it had $97,516 million of funds under management.

Unsurprisingly, these trends have led to a divergence in their share price performances.

Over the last 12 months the Magellan share price is up a massive 137%. It also recently hit a record high of $70.96.

Whereas the Platinum share price has gained just 1.9% over the same period. Shareholders will no doubt be hoping for better over the course of 2020.

The post Platinum reveals further fund outflows in January appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020