Platinum boss Andrew Clifford said investors are living in “one of the most exciting bull markets with some of the most extraordinary valuations seen in history” and prices being paid for sharemarket winners are expensive on any level.

Platinum Asset Management increased 2021 net profit by 5 per cent to $163.25 million in results released after-market on Wednesday.

The group earned performance fee revenue of $4 million down from $9.1 million and average funds under management for the year decreased by 1.6 per cent to $23.4 billion from $23.7 billion.

“Perhaps more importantly, there are risks for today’s market darlings that are possibly not given enough attention by investors,” he said. Inflation and competition are two such risks. “Our conclusion is that it is likely that we are in a traditional bull market, that will end at some point, with painful consequences for those who remain invested in the hottest parts of the market when the music stops.”

The fund manager declared a fully franked final dividend of 12¢ to be paid on September 16.