By Alice Uribe
SYDNEY–Platinum Asset Management shares rose after it issued its half-year earnings, which said the company’s board had approved a turnaround program, designed to revitalize it.
The Australian fund manager’s shares were 12% higher at 1.16 Australian dollars (75 U.S. cents) in morning trade Friday, after hitting a high of A$1.19 earlier.
Platinum on Thursday, after the market closed, issued its results for the six months to December which showed a 5% on year drop in net profit to A$35.6 million. Still, this beat the Visible Alpha consensus cited by Citi of A$34.1 million.
At the same time, Citi said that the new Platinum chief executive Jeff Peters looked to be eager to lead the company through its next phase with a “new strategic perspective,” with the announcement of a turnaround plan.
As part of the plan, Platinum said it would undertake a “deep examination” of its investment platform, which includes a review and reorganization of its investment research function, review of its portfolio construction and risk management processes.
The company noted Thursday that “our investment philosophy will not change.”
While analysts greeted the turnaround plan positively, some said that more information would be required, noting no targets had been set.
Platinum is down 13% so far this year.
Write to Alice Uribe at alice.uribe@wsj.com
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