Platinum dealt second strike at AGM by shareholders angry about underperformance

Shareholders have again revolted against the Platinum board as frustration mounts about the fund manager’s continued failure to deliver.

Platinum founder and major shareholder Kerr Neilson. It’s unclear if he voted against the remuneration report. Picture: Hollie Adams

Takeover target Platinum Asset Management has been dealt a massive blow from shareholders after receiving a second strike against its remuneration at its annual general meeting on Tuesday, after its first protest vote last year.

Shareholders voted 72 per cent against the remuneration report, but did not vote in favour of spilling the board.

Chairman Guy Strapp said the board understood it was on notice to deliver better results.

“The board has taken clear steps on remuneration,” Mr Strapp told shareholders. “We understand the concerns of shareholders … we are actively trying to address this.”

Those concerns centre around the underperformance of all but its Asia fund across the various benchmarks and over a variety of years.

The underperformance, coupled with the industry shift out of active fund management into cheaper exchange traded products, has meant the once-great fund manager has been in outflow since 2019.

In 2023 founder and major shareholder Kerr Neilson publicly spat the dummy at Platinum’s performance, demanding the role of investing and management — at the time both held by co-founder Andrew Clifford — and deriding its investment results.

Judging by the result it seems likely Mr Neilson — who still owns 21 per cent of the company — voted for a second strike but not for board be thrown out.

Acquisitive hedge fund rival Regal Partners has made an offer to buy Platinum and while the company rejected the offer as being too low it has allowed the Phil King-led firm greater access to its books in the hope of spurring a higher bid.

Rivals Wilson Asset Management and Paradice Investment Management are also understood to be in merger talks with Platinum.

“The board will continue to keep the market updated,” said chairman Guy Strapp. “We are also engaged with certain parties who have approached Platinum to explore various forms of transactions, which we will assess both on their individual merits but also relative to our ongoing stand-alone restructure and turnaround strategy.”

Frustration about Platinum’s underperformance has triggered the return of founding staffer Jim Simpson. The former staffer was voted on to the board at the AGM, he worked at Platinum from 1994, when it was listed, up until 2007.

Mr Simpson was asked by a shareholder whether he would need to act as a peacebroker between Mr Neilson, who no longer has any role at Platinum and Mr Clifford, who stepped down as chief executive but remains the head stock picker.

“You can have disagreements as long as they are respectful,” Mr Simpson said. “I have no problems talking to either of them.”

When asked why he sought to return to Platinum, Mr Simpson said: “It was $5 and now its $1.17. It’s in a pretty dire situation.”

The rejected Regal offer was at the time valued at $1.11 based on the value of Regal shares, but has risen to as much as $1.30 as the acquirer’s share price has increased. Platinum shares rose 0.43 per cent during intraday trade to $1.18.