Australian Unity to wind down Platypus AM

Australian Unity will wind down Platypus Asset Management, its wholly owned Australian equities fund manager, following a strategic review of the business.

Australian Unity chief executive, wealth and capital markets, Balaji Gopal said the business undertook a detailed strategic review which considered a variety of different options for Platypus and concluded ownership of an Australian equity manager was no longer aligned to Australian Unity's strategy for the Wealth and Capital Markets business.

Australian Unity said the review also highlighted long-term profitability and viability challenges facing Platypus due to the evolving market environment for active Australian equity fund managers.

"This decision is aligned with our strategy to simplify and strengthen our Wealth and Capital Markets business, deliver greater value for members, and focus our capital and resources on areas of enduring competitive strength, including investment bonds, social infrastructure property across healthcare, aged care and specialist disability accommodation, investments, and trustee services," Gopal said.

"Australian Unity is proud to have supported the growth and success of Platypus Asset Management for more than two decades.

"Our immediate priority is to ensure an orderly wind down of the Platypus investment management arrangements and a smooth transition for clients, while continuing to support the Platypus team and its clients throughout the process."

Gopal said Platypus Asset Management's clients had been notified of the decision.

"We recognise this is an important change for investors and the Platypus team, and Australian Unity is putting in place appropriate interim management arrangements to oversee the transition and wind down," he said.

Earlier this year Morningstar released its inaugural Best of Breed - Australia and New Zealand report highlighting active funds which provided the best long-term potential for Australian investors, with Platypus' Australian Equities Fund making the list.