Platinum Asset Management has seen its funds under management fall by $6.2 billion, or almost 30 per cent, over the year to the end of June 2008. The fund manager cites volatility in global markets and world financial conditions generally as the cause for a drop in its net profit after tax from $186.1 million in 2007 to $161.9 million for 2008.
Performance fees generated by the company's funds fell 23.8 per cent to $28.7 million while management fees fell in line with the lower total funds under management. The Chairman's report also warns that it is possible that no performance fees will be earned over the next six months. Performance fees are calculated over the calendar year and, although the funds are outperforming their benchmarks, the performance of all funds over the first six months of the year is -9%.
