The way I'm reading this is that it is still net outflows of $50M or so. i.e. I think the headline is being distorted by reinvestment of 30 June distributions (which perhaps get recorded as an outflow and then some come back as an inflow via optional reinvestment).
So they received $75M of reinvestment of distributions from the various existing investors in the Platinum Trust Funds, but this only netted off as being $22M of net inflows, which would suggest that there were still monthly outflows totalling approximately $53M in July.
Such a 53M monthly outflow would still represent a significant slowing of outflows relative to prior months, so is a positive in my mind.
However, I remain cautious about being too optimistic for 2 reasons:
1. The rally in markets in July hurt PTM's funds performance as they remain defensively positioned (e.g. net market exposure only circa 55% in the flagship international strategy) and probably lost money on shorts, so the International fund was down almost 1% in July relative to a global equity market up more than 5%. Whilst I suspect PTM are correctly positioned for the medium term, they really need this rally to end and for some nasty stuff to hit the fan before they can meaningfully turn around their FUM flow issue. They also need to vastly improve their marketing and sales effort. I do wonder why Liz Norman, who has headed this area up for many years and is very highly paid relative to results, doesn't get challenged more by the PTM Board of Directors.
2. I hope I'm misreading this, but If the reinvestments were only $75M out of circa $950M paid out in distributions ($888M net of reinvestment), this is a very low level of reinvestment by existing investors. Possibly meaning that the vast majority of their existing investors are elderly and would have invested their money many, many years ago when Platinum still had a huge reputation (which is now quite diminished). This would be worrisome as these investors would largely be in drawdown/pension phase now and less likely to be able to contribute new capital, so FUM may continue to steadily decline until PTM can get fresh new FUM from newer, younger investors/financial advisers, which requires a decent period of sustained outperformance to get new people to sit up and take notice of Platinum, PLUS a a more effective, less eclectic approach to marketing and sales to capitalise on any such future outperformance.
I hope they can turn things around, as I am invested in their funds and also a PTM shareholder, but this will take time, and I worry that even if they do turn it around performance wise, they haven't got the right approach to the sales aspect to be able to capitalise on any future outperformance. I think some people may still be living in the past and thinking there is still a halo effect around PTM. The Board needs to act in the best interests of all shareholders, and there should not be any sacred cows, or favourites. When a business has struggled to outperform or grow for as long as PTM has, everything needs to be looked at with fresh eyes and an open mind, otherwise we shareholders run the risk of being captured by hubris and special interests/favouritism.
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