Platinum announces strategic review

Platinum Asset Management said it would be undertaking a strategic review of both Platinum Capital (PMC) and Platinum Asia Investments (PAI).

Platinum said the boards of both PMC and PAI have noticed a trend away from close-ended investment vehicles, particularly those that "lack sufficient scale to generate the liquidity required to maintain share prices close to the underlying net tangible assets (NTA)".

Platinum said PAI and PMC were not immune to the affects of the general market sentiment and as such a formal strategic review would take place.

"The scope of this review will be broad, including looking at options to build scale and/or convert to an open-ended fund structure allowing investors to trade at or close to net asset value," Platinum said.

"There are complex legal, tax, and operational issues that need to be considered, which will take time to work through."

These reviews play into a broader turnaround program announced by Platinum in February.

Platinum chief executive Jeff Peters said the market and competitive environment were difficult and had been affecting the company and its clients.

"It has been a difficult year so far at Platinum. We have seen net outflows, declines in revenue and our investment performance is not where we would like it to be for our clients. Change is necessary and, whilst we have a full agenda, I am confident we can get it done," Peters said.

"The reason I joined Platinum - the brand, the talent of our investment and senior teams, the legacy of success here in Australia - these things are all still here. We must capitalise on them and improve where we can, and then we will be well on the way to revitalising Platinum for our clients and our shareholders."

The overhaul will come in two phases; the reset phase will take place over the next four months, while the growth phase will be implemented over the next six-plus months.