Platinum Asset Management could look at new products, says new CEO Jeff Peters

The fund manager’s new boss Jeff Peters says it may look at expanding its product range, potentially offering Australian-based funds.

Platinum Asset Management could look at expanding its product range, potentially offering Australian-based funds, as a move to reassure investors under its new US chief executive, Jeff Peters.

The listed fund manager – which has seen its shares fall from $5.40 in early 2021 to its current level of $1.31, and funds under management fall from $23bn in 2021 to $15.5bn in November – will see Mr Peters take over as CEO once his visa is approved early in the new year. Existing boss Andrew Clifford is stepping back to focus on his role as chief investment officer.

Founded by Kerr Neilson in 1994 with the financial backing of George Soros, and listed in May 2007, Platinum has focused solely on funds investing in international shares to date.

Mr Neilson stepped down as CEO in 2018, with Mr Clifford taking over as both CEO and CIO. Mr Neilson stepped down from the board more recently, but remains the major shareholder, with around 21 per cent of the company.

Mr Peters led the international and institutional businesses of Columbia Threadneedle Investment and Putnam Investments, after a period running the asset management practice of McKinsey. In an interview with The Australian on Monday, he indicated that he will review the firm’s range of product options when he takes over as CEO.

His goal would be looking for ways to grow the company and reverse the outflow of funds, including a review of the firm’s product offering as one of his first priorities.

“A natural area for us to explore would be whether there are other ways that we can diversify our product offering to our investor base,” he said.

“That’s an easy thing to say (but) it can be a very hard thing to do.

“There are cultural issues and finding the right team.

“But that said, if there are other great capabilities that could be added into our stable, we will certainly look at those.”

“And more to come on that.”

Mr Peters said the focus on diversification was something he would have a “very strong look at” in his first few months as CEO.

He said his goal was “get into positive flows and grow” of funds under management.

“The challenge in this story is a growth story. That is what we are going to be focuses on. The best way of having people stay with you and invest with you is to do a great job.”

“This means delivering from an investment perspective, as we are supposed to, and from a philosophical perspective, from a discipline perspective and from a performance perspective.”

“We are on about delivering growth and getting Platinum back to a growing place.”

Platinum Asset Management's new CEO Jeff Peters at their office in Sydney. Picture: Adam Yip

Mr Peters said the new structure at the top of Platinum would see both he and Clifford focuses on what they do best.

“It is a very different skill set running an investment area versus running a business,” he said.

“It plays to both of our strengths,” he said.

“I couldn’t think of someone who has had more experience and could bring more value than Andrew in the CIO role,” he said.

“My experience has been around the rest of the business-around distribution, around clients and around operations, running a business and running the profit and loss.”

“It is a great way of running the firm, and it will bring the best of both of us to bear.”

Mr Peters will be paid a base salary of $1m a year with an initial grant of performance rights $1.5m worth of long term incentives and a potential $1m a year in short term incentives.

Mr Clifford said the clients he had met with since announcing he would be stepping down from the CEO role were “universally supportive of it, primarily around the idea that my full attention will be on the portfolios.”

Mr Peters, who lived in Australia in the mid-nineties, and has continued a strong relationship with the country, said he had “watched the Platinum story and was always compelled by the quality of the brand.”

“It’s a reputation I knew about.”

His enthusiasm for birdwatching has seen him drive from South Australia to Northern Queensland and other parts of the country over the past three decades during his time living in Australia and subsequent visits.

“You could look at my career as a constant attempt to get back to Australia,” he said.

“Coming back to Australia is something I have been trying to do for a very long time.”

“I’m very excited about it.”

Mr Peters said he had recently met with Mr Neilson, who has been critical in the past of some aspects of Platinum’s management.

“I met with Kerr and look forward to having a continuing dialogue with him as we go forward,” he said.

Mr Peters appointment will see Mr Clifford stand down from the board along with two other executive directors, Elizabeth Norman, and Andrew Stannard who will report to Peters.

This will leave the board with Peters as managing director, and four independent directors, Guy Strapp as chair, as well as Anne Loveridge, Brigitte Smith, and Philip Moffitt.

Mr Strapp said Mr Peters’ appointment was “pivotal to leading the next phase of the business.”

“Jeff’s prior experience captures the important features required to grow a funds management business, namely strong investment performance, a focus on client outcomes and the ability to thoroughly execute on strategic goals.”

“We are excited for Platinum’s prospects.”

He said the restructuring of the board had been driven by the decision to separate the roles of CEO and chief investment officer which “aligns more closely to that of other listed companies in Australia.”

Mr Clifford said the investment market in Australia had become a lot more competitive since Platinum was founded, necessitating the separation of roles of CEO and CIO.

“When I took over as CEO five years ago, I didn't believe the CEO role would be a huge distraction from my investing.

“But over the years, it has started to be the case.

“I am looking forward to getting back to that being the absolute focus of my job.”