Investors have the lever to make the world a better place.

A sustainable business, one that grows and thrives in the future, is valuable to us as investors and to society at large.

What we understand a sustainable business to be

It is Platinum’s belief that value creation for shareholders will be linked to the long-term value businesses offer society at large; this is the crux of ESG. Understanding what gives a business its social licence to exist means understanding its contribution to, and interaction with, society.

In our opinion, the investment industry is still fixated on a value proposition which focuses almost exclusively on monetary returns, and despite much fanfare and flag waving, is yet to truly comprehend what it means to integrate ESG within their investment processes. Most available ESG offerings are the triumph of (short-term) form over (long-term) substance.

We believe that private enterprise plays a central role in wealth creation and socio-economic advancement. The key to Platinum’s investment approach lies in distinguishing companies with sound businesses that are actively seeking to improve their footprint and adapting to structural shifts, from those that are facing fundamental challenges. This requires independent thought and practical business acumen.

The companies we invest in sit at the centre of a complex web of relationships, influences and (sometimes opposing) forces; the ESG factors that we may examine in our integrated analysis are wide-ranging and depend on the industry concerned as well as the geographic location of the particular business. Some examples include, but are not limited to:

Carbon footprint, resource depletion and waste management.
Working conditions and industrial relations, community resettlement (e.g. by mining companies or real
estate developers), product safety and cybersecurity. 
Executive compensation, board independence and diversity, as well as having processes in place to prevent fraud and other malpractice.

These issues can have an impact on the environment and/or communities (including employees and consumers), but they also present regulatory, operational and economic risks to a company, which may potentially have a material impact on its financial performance and hence investor returns.

Platinum’s Corporate Responsibility

The expectations we have for companies we research are no different to the expectations we have for ourselves.

Losing the trust of clients, be it due to unethical business practices, prioritising a manager’s own interests over that of its clients’ in situations of conflict, or simply providing poor service, are in our view some of the greatest risks to the sustainability of an asset management business.

The standard we hold others to is the one we hold ourselves to.

“ As founders we were guided by a paramount sense of responsibility towards the clients who have entrusted Platinum with their savings. This ethos means that we put our clients’ interests first in everything we do.” Kerr Neilson

This means:

  • we have always been completely transparent – in both how we are looking after your capital and what it costs you.
  • we have NEVER paid trail commissions – even when our industry was built on them.
  • we have always made decisions in favour of the investor – regardless of how uncomfortable they may have made us feel as business owners.
  • we have never entered fee-sharing deals with platforms or their related parties.

Platinum has a simple core belief: if we responsibly and successfully look after our clients’ money, our business should prosper. A failure to understand and commit to this priority will not result in an enduring asset management business; marketing, commissions and other selling practices notwithstanding.

This belief has led Platinum to maintain a deep and consistent commitment to sustainable business practices and responsible investment management. In particular, we consider the following are key to the long-term sustainability of our business:

Platinum's 'Corporate Responsiblity and Sustainability Report' discusses Platinum's strategy and performance in addressing the opportunities and challenges associated with building a sustainable business. It also considers our goals and initiatives against the framework of the United Nations (UN) 2030 Sustainable Development Goals (SDG) as we seek to align Platinum’s future prosperity with that of the broader community.

In addition, the Platinum Group 'Modern Slavery Statement' sets forth the Platinum Group’s ongoing commitment to identify and address modern slavery risks arising in the Platinum Group’s corporate supply chains and investment portfolios. It also provides details of the Platinum Group’s approach, policies and plans to continuously improve and strengthen its commitment to ensuring respect for human rights and freedom from modern slavery.