Platinum Asia Investments Limited (ASX code: PAI)

An ASX-listed investment company, PAI offers investors an easy and convenient means of accessing an actively managed, diversified portfolio of Asian (ex-Japan) companies across industry sectors, providing exposure to undervalued businesses that are benefiting from Asia’s dynamic growth and transformation.

Investment objective:

To provide capital growth over the long-term through investing primarily in undervalued listed securities of companies in the Asian region (ex-Japan) across sectors. In doing so, PAI aims to achieve net returns over a five year plus investment horizon that are in excess of the benchmark (MSCI All Country Asia ex Japan Net Index (A$)) returns.

Key benefits:

  • Access to a manager with a proven investment philosophy and method for selecting undervalued stocks and a team of experienced investment professionals
  • Exposure to an actively managed, diversified equity portfolio that seeks to minimise losses during market downturns using risk management techniques
  • Actively managed currency exposures providing substantial diversification from the Australian dollar
  • Easy to trade on ASX – no set minimum investment required
  • Being taxed at source, PAI can distribute available profits to shareholders in the form of dividends, usually fully-franked
  • Having established a dividend profit reserve, PAI's Board can smooth its dividends from year to year
  • Legal structure:

    A closed-ended investment company listed on the Australian Securities Exchange

  • ABN:

    13 606 647 358

  • Management costs:
    • 1.10% p.a. of portfolio value, plus
    • 15% of outperformance over benchmark (MSCI AC Asia ex-Japan Net Index (A$))
  • Share Registry Contact:
  • Updates:

    Subscribe to receive PAI updates by email

  • Portfolio manager(s):
    Dr Joseph Lai

    Portfolio Manager

    It has been many years since Joe last held a stethoscope and examined patients in a hospital, but what his early experience as a.. More

Dividends

Dividend History

Dividend type Payment date Net amount (cps) Franking credit (cps) Gross amount (cps)
- - - - -

The dividend information displayed herein is historical. No guarantee can be given about future dividends or the level of franking of such dividends (if any).

Dividend Reinvestment Plan

    PAI has in place an active Dividend Reinvestment Plan (DRP) which provides shareholders with an optional and convenient service to acquire more PAI shares by automatically reinvesting all or part of their dividends declared on PAI shares already held.

    Subject to the discretion of PAI’s Board of Directors, PAI shares may be issued or transferred under the DRP at a discount to their market price.

    Shareholders pay no brokerage, stamp duty or other costs to participate in the DRP.

Unclaimed Dividends

    PAI's Constitution provides that any dividends that are not claimed within 6 months of the date of the dividend will be reinvested as additional shares in PAI. The issue price for the additional shares will be the last sale price of PAI’s shares on the ASX on the first Business Day following the expiration of the 6 months from the date of payment of the dividend.

    By deeming that the unclaimed dividends be automatically reinvested as additional shares in PAI, PAI will be able to reduce administration costs incurred in tracing and managing unclaimed dividends while shareholders will receive additional shares instead of cash payment.

    If you wish to receive future PAI dividends in cash, please ensure that you provide PAI's Share Registry, Link Market Services, with your current Australian or New Zealand financial institutional account details.

    You can update details about your PAI holdings via Link's secure website at https://investorcentre.linkmarketservices.com.au/Login/Login.

ASX Releases & Updates

ASX Announcements

Monthly Updates

Quarterly Reports

Financial Statements & Annual Reports

Portfolio Snapshot

Industry Breakdown1
SectorLong %Net %
Financials 23.9 23.9
Information Technology 16.4 16.4
Industrials 8.0 8.0
Consumer Discretionary 7.7 7.7
Materials 6.6 6.6
Energy 5.9 5.9
Real Estate 5.5 5.5
Health Care 4.3 4.3
Consumer Staples 2.3 2.3
Utilities 2.0 2.0
Telecom Services 1.4 1.4
Top 10 Positions3
StockCOUNTRYINDUSTRY%
Alibaba Group China Information Technology 3.4
Samsung Electronics Co Ltd Korea Information Technology 3.3
Axis Bank Ltd India Financials 3.1
Ping An Insurance (Group) Co of China Ltd China Financials 3.1
Yes Bank Ltd India Financials 2.8
Kasikornbank PCL Thailand Financials 2.8
China Overseas land & Investment Ltd China Real Estate 2.7
China Oilfield Servies Ltd China Energy 2.3
China Merchants Bank China Financials 2.3
CNOOC Ltd China Energy 2.2
"China" includes exposure to Chinese A share, H shares and ADRs.
Disposition of Assets2
Long %Net %Currency%
China 44.8 44.8 7.0
Hong Kong 5.2 5.2 47.5
Taiwan 1.9 1.9 1.9
India 13.5 13.5 13.5
Indonesia 0.5 0.5 0.5
Korea 10.4 10.4 10.5
Malaysia 0.5 0.5 0.5
Philippines 2.0 2.0 2.0
Singapore 0.6 0.6 -
Thailand 4.5 4.5 4.6
United States Dollar - - 12.0
Long: 75 stocks, 1 swap. USD exposure includes USD cash, USD denominated stocks and derivatives over such stocks. "China" includes all mainland China-based companies, including those listed offshore.
Top 10 Positions3
StockCOUNTRYINDUSTRY%
Alibaba Group China Information Technology 3.4
Samsung Electronics Co Ltd Korea Information Technology 3.3
Axis Bank Ltd India Financials 3.1
Ping An Insurance (Group) Co of China Ltd China Financials 3.1
Yes Bank Ltd India Financials 2.8
Kasikornbank PCL Thailand Financials 2.8
China Overseas land & Investment Ltd China Real Estate 2.7
China Oilfield Servies Ltd China Energy 2.3
China Merchants Bank China Financials 2.3
CNOOC Ltd China Energy 2.2
"China" includes exposure to Chinese A share, H shares and ADRs.
All data as at [30 April 2018] .
  1. “Long %” represents PAI’s exposure to physical holdings and long derivatives (of stocks and indices) as a percentage of PAI's net asset value. “Net %” represents PAI’s exposure to physical holdings and both long and short derivatives (of stocks and indices) as a percentage of PAI's net asset value.
  2. “Long %” represents PAI’s exposure to physical holdings and long derivatives (of stocks and indices) as a percentage of PAI's NAV. “Net %” represents PAI’s exposure to physical holdings and both long and short derivatives (of stocks and indices) as a percentage of PAI's NAV. “Currency %” represents PAI’s currency exposure as a percentage of PAI's NAV, taking into account currency hedging.
  3. The “Top 10 Positions” table shows PAI’s top 10 long stock positions (through physical holdings and long derivatives) as a percentage of PAI's net asset value.

Investment Strategy

Platinum Asia Investments Limited (PAI) invests primarily in undervalued listed securities of companies in the Asian region (ex-Japan) across sectors. The portfolio will ideally consist of 75 to 150 securities that Platinum believes to be undervalued by the market. Cash may be held when undervalued securities cannot be found. However, the portfolio typically has 50% or more net equity exposure. Platinum may short-sell securities and indices that it considers overvalued.

PAI’s key investment guidelines are summarised below.

Suggested time horizon 5 or more years
Geographic limits

PAI may invest in companies that are listed or traded on a securities exchange in the Asia (ex-Japan) region as well as companies that are listed or traded on a securities exchange outside of the Asia (ex-Japan) region but whose business is predominantly conducted in or focused on the Asia (ex-Japan) region.

Platinum defines “Asia (ex-Japan) region” as all countries and territories that occupy the eastern part of the Eurasian landmass (separated from Europe by the Ural Mountains) and its adjacent islands, including the Russian Far East, and excluding Japan.

PAI may invest in listed companies based in China, Hong Kong, Taiwan, South Korea, Malaysia, Singapore, India, Thailand, Indonesia, Philippines, Sri Lanka, Pakistan and Vietnam.

Industry/sector limits N/A
Number of securities in portfolio Typically 75 to 150 securities
Net equity exposure Typically 50% or more of PAI’s net asset value
Cash holdings Typically 0 – 50% of PAI’s net asset value
Limits on individual security holdings 10% of PAI’s net asset value (at the time of investment)
Short-selling Subject to the limits regarding leverage and the use of derivatives, PAI may short-sell securities and indices for risk management and as a way to take opportunities to increase returns.
See Platinum’s risk management strategies for further details.
Currency
  • PAI’s currency exposures are actively managed with the aim of capturing the returns and minimising the risks arising from the portfolio’s exposure to foreign currency fluctuations, which can change the value of the equity investments measures in PAI’s base currency (AUD).
  • Platinum may manage PAI’s currency exposures using foreign exchange forwards, swaps, non-deliverable forwards, currency options and spot foreign exchange trades.
See Platinum’s risk management strategies for further details.
Leverage
  • PAI does not borrow funds (except for short-term overdrafts for trade settlement), though borrowing up to 10% of PAI’s net asset value (at the time of borrowing) is permitted.
  • PAI may be leveraged through the use of derivatives (see below for detail).
Derivatives
  • PAI may use financial derivative instruments for risk management purposes and as a way to take opportunities to increase returns, such as to gain access to markets not readily available to foreign investors or to establish short positions.
  • Both over-the-counter (OTC) derivatives and exchange-traded derivatives are permitted.
  • PAI’s effective exposure from its derivative positions1 must not exceed 100% of PAI’s net asset value.
  • PAI’s gross exposure, taking into account all securities and derivatives1 (long and short) held, must not exceed 150% of its net asset value.
See Platinum’s risk management strategies for further details.
1 Where options are employed, the underlying value will be the Delta-adjusted exposure. “Delta” is the theoretical measure of the sensitivity of the option price to a chance in the price of the underlying asset (usually expressed as a percentage).
Securities lending Not undertaken.

Board & Governance

Board of Directors & Company Secretary

Margaret Towers, CA, GAICD

Chairman, Non-Executive Director and member of the Audit, Risk and Compliance Committee since 31 March 2018

Ms Towers has over 35 years of experience operating at board and senior management levels, within the wealth management and investment banking sectors of the Australian financial markets. Ms Towers has also previously been a non-executive director of Platinum Asset Management Limited (ASX code: PTM), chair of PTM’s Audit, Risk and Compliance Committee and a member of PTM’s Nomination and Remuneration Committee. Ms Towers is a non-executive director of IMB Limited.

Ian Hunter

Independent and Non-Executive Director since 24 June 2015, Chair of the Audit, Risk and Compliance Committee since 23 July 2015

Mr Hunter has worked in the finance and investment industry since 1975. He has worked at several banks, including JP Morgan, Citigroup and Lloyds Bank and, more recently, as a director and Executive Vice-President of Bankers Trust Australia. He was a founding director of Etrade Australia Limited and has previously been a director of Rubik Financial Limited. Mr Hunter currently also serves as a director of Ironbark Capital Limited.

Malcolm Halstead, CA

Independent and Non-Executive Director since 24 June 2015, member of the Audit, Risk and Compliance Committee since 23 July 2015

Mr Halstead has worked in the finance and investment industry since 1982. He worked at Price Waterhouse and Bankers Trust Australia prior to joining Platinum as a founding member and a director in 1994. He was the Finance Director and Company Secretary of Platinum Capital Limited (ASX code: PMC) from 1994 to 2011 and of Platinum Asset Management Ltd (ASX code: PTM) from 2007 to 2011.

Joanne Jefferies, BCom, LLB

Company Secretary since October 2016

Ms Jefferies is an English law qualified solicitor with more than 21 years of legal experience in the asset management and securities services sectors, in England and across Asia Pacific.

Ms Jefferies joined Platinum in October 2016 as General Counsel and Group Company Secretary, having spent the previous six years at BNP Paribas Securities Services as Head of Legal Asia Pacific, Company Secretary for all Australian subsidiaries and a member of the Asia Pacific Executive Committee. Ms Jefferies has previously held senior legal positions with Russell Investments, Morley Funds Management (Aviva Investors) and Lord Abbett, and served as the General Counsel for the UK’s funds management industry association, the Investment Association.

Company Details

Company name Platinum Asia Investments Limited
ASX ticker code PAI
ACN 606 647 358
ABN 13 606 647 358
Registered office Level 8, 7 Macquarie Place
Sydney NSW 2000
Australia
Share registry Link Market Services Limited
Level 12, 680 George Street
Sydney NSW 2000
Australia
 
T: +61 1300 554 474
F: +61 2 9287 0303
E: registrars@linkmarketservices.com.au
 
Locked Bag A14
Sydney South NSW 1235
Australia
Investment manager Platinum Investment Management Limited
T: +61 2 9255 7500
T: 1300 726 700 (Toll-free Australia)
F: +61 2 9254 5555
 
 

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