In a note to investors, Platinum said it is closing its London office after a decision was made to close the UCITS funds run under the Platinum World Portfolios (PWP) umbrella, which comprised its International, Asia, Japan, and Health Sciences strategies.
“Upon the recommendation of Platinum as the fund promoter, the board of PWP plc has decided to close the funds and wind up the company,” the note reads.
“Platinum has also decided to close its London office which was set up primarily as a distribution office for the UCITS,” the fund manager said.
Acknowledging the closure on LinkedIn, Timothy Maher, who was appointed managing director of PWP in 2018, wrote: “The team and I closed the door on the London office for the last time today as we exit Platinum Asset Management after five and a half fabulous years”.
“We are grateful to our many Sydney-based colleagues who welcomed us to the firm and wish all well under the firm’s new leadership.”
Platinum’s London office, which was made up of three staff members, was responsible for the distribution and client servicing of European clients in the UCITS.
Speaking to InvestorDaily, Charles Brooks, Platinum’s institutional investment specialist, said: “This does not impact our ability to manage and service mandate opportunities in the region”.
Elaborating on the decision to shutter the UCITS, Brooks said it was made based on the “low assets under management in the funds and the limited opportunity to raise significant assets in the short to medium term”.
He confirmed that the closure is part of the fund manager’s intent to revitalise the company following declines in both revenue and funds under management.
Dubbed the “turnaround program”, Platinum announced in February that it would be undergoing an arduous process to cut costs and position the business for the future.
In an update in late March, the fund manager said it had completed an initial review and would be targeting at least $25 million in annualised run rate savings.
At the time, the fund manager said these savings would only begin to be realised during the last quarter of the 2024 financial year, and would not generate a material impact on the company’s reported FY2024 profit, with the bulk of savings being progressively realised during the 2025 financial year.
Commenting on the revitalisation plan, Jeff Peters, who stepped in as Platinum chief executive at the tail end of 2023, said: “In late February, we outlined a strategy to reset and position the business for future growth. I am pleased to be able to report that we are acting swiftly to implement the changes required as part of the reset phase”.
“I would like to reiterate my firm belief that Platinum will emerge from this challenging phase as a revitalised business that is better able to leverage its strong brand and talented team for the benefit of its clients.”
As at 30 June 2023, PWP had $155 million in funds under management, down from $376 million a year earlier, which represented only 1 per cent of Platinum’s FUM total.
