Platinum Capital Limited (ASX code: PMC)

An ASX-listed investment company, PMC offers investors an easy and convenient means of accessing an actively managed, truly diversified portfolio of companies from around the world and across industry sectors, providing exposure to undervalued businesses in both developed and emerging markets.

Investment objective:

To provide capital growth over the long-term by investing in undervalued companies from around the world.

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, PMC can distribute available profits to shareholders in the form of dividends, usually fully-franked
  • Having established a dividend profit reserve, PMC's Board can smooth its dividends from year to year

 

  • Legal structure:

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

  • ABN:

    13 050 064 287

  • Management costs:
    • 1.10% p.a. of portfolio value, plus
    • 15% of outperformance over benchmark (MSCI AC World Net Index (A$))
  • Share registry contact:
    Computershare Investor Services
    T: +61 3 9415 4000
    T: 1300 855 080 (Toll-free Australia)
  • Portfolio manager(s):
    Kerr Neilson

    Chief Executive Officer

    Kerr, with the help of Andrew Clifford, founded Platinum in 1994 with a view to making money for investors. The emphasis was on.. 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

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

    Subject to the discretion of PMC’s Board of Directors, PMC shares may be issued or transferred under the DRP at a discount to their market price. The current DRP discount rate is 2.5%.

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

Unclaimed Dividends

    PMC'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 PMC. The issue price for the additional shares will be the last sale price of PMC’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 PMC, PMC 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 PMC dividends in cash, please ensure that you provide PMC's Share Registry, Computershare Investor Services, with your current Australian or New Zealand financial institutional account details.

    You can update details about your PMC holdings via Computershare's secure website at https://www-au.computershare.com/Investor.

ASX Releases & Updates

ASX Announcements

Monthly Updates

Quarterly Investment Manager’s Reports

Financial Statements & Annual Reports

Investment Strategy

Platinum Capital Limited (PMC) primarily invests in listed securities. The portfolio will ideally consist of 70 to 140 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.

PMC’s key investment guidelines are summarised below.

Suggested time horizon 5 or more years
Geographic limits N/A
Industry/sector limits N/A
Number of securities in portfolio Typically 70 to 140 securities
Net equity exposure Typical range: 50 – 100% of PMC’s net asset value
Cash holdings
  • Typical range: 0 – 40% of the PMC’s net asset value
  • Permissible range: 0 – 100% of PMC’s net asset value
Limits on individual security holdings PMC will seldom invest more than 5% of its net asset value (at the time of investment) in the securities of a single issuer.
Short-selling Subject to the limits regarding leverage and the use of derivatives, PMC may short-sell securities and indices for risk management purposes or as a way to take opportunities to increase returns.
See Platinum’s risk management strategies for further details.
Currency
  • PMC’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 PMC’s reporting currency (AUD).
  • Platinum may manage PMC’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
  • PMC does not borrow funds (except for short‑term overdrafts for trade settlement).
  • PMC may be leveraged through the use of derivatives (see below for detail).
Derivatives
  • PMC 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. Aggregate exposure to all OTC derivative counterparties will typically be no more than 5% of PMC’s net asset value, and in any event will not exceed 10% of its net asset value.
  • PMC’s effective exposure from its derivative positions1 must not exceed 100% of PMC’s net asset value.
  • PMC’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.

Portfolio Snapshot

Industry Breakdown1
SectorLong %Net %
Information Technology 23.9 23.9
Consumer Discretionary 13.6 13.1
Financials 11.8 11.8
Materials 9.5 9.5
Energy 9.3 9.3
Industrials 8.5 8.5
Health Care 7.6 7.6
Consumer Staples 5.2 1.1
Telecom Services 1.9 1.9
Real Estate 1.6 1.6
Utilities 1.5 1.5
Other 0.7 (7.9)
Top 10 Positions3
StockCOUNTRYINDUSTRY%
Samsung Electronics Co Ltd Korea Information Technology 3.8
Alphabet Inc USA Information Technology 3.1
Royal Dutch Shell PLC UK Energy 2.6
Lixil Group Corporation Japan Industrials 2.5
Inpex Corporation Ltd Japan Energy 2.5
Ping An Insurance (Group) Co of China Ltd - A shares China Financials 2.3
China Pacific Insurance Group Co Ltd China Ex PRC Financials 2.2
PICC Property & Casualty Co Ltd - H shares China Ex PRC Financials 2.1
Nexon Co Ltd Japan Information Technology 2.0
Jiangsu Yanghe Brewery JSC Ltd China Consumer Staples 2.0
Disposition of Assets2
Long %Net %Currency%
Australia 1.5 1.5 2.3
Canada 0.2 0.2 0.2
China 4.3 4.3 4.2
China Ex PRC 19.8 19.8 -
Hong Kong 0.3 0.3 14.3
Denmark 0.7 0.7 0.8
France 3.5 3.5 -
Germany 4.2 4.2 -
India 4.2 4.2 4.2
Italy 1.3 1.3 -
Japan 16.9 16.9 10.2
Korea 8.8 8.8 8.8
Malaysia 1.1 1.1 1.1
Nigeria 0.1 0.1 0.1
Norway 1.2 1.2 3.1
Russia 0.7 0.7 -
South Africa 0.2 0.2 0.2
Sweden 0.3 0.3 0.3
Switzerland 2.7 2.7 0.7
United Kingdom 6.1 6.1 4.6
United States 13.9 0.6 28.2
Vietnam 2.2 2.2 2.2
Zimbabwe 1.0 1.0 -
Euro Currency - - 14.5
Long - 93 stocks, 2 swaps. Short - 8 stocks, 1 index.
Top 10 Positions3
StockCOUNTRYINDUSTRY%
Samsung Electronics Co Ltd Korea Information Technology 3.8
Alphabet Inc USA Information Technology 3.1
Royal Dutch Shell PLC UK Energy 2.6
Lixil Group Corporation Japan Industrials 2.5
Inpex Corporation Ltd Japan Energy 2.5
Ping An Insurance (Group) Co of China Ltd - A shares China Financials 2.3
China Pacific Insurance Group Co Ltd China Ex PRC Financials 2.2
PICC Property & Casualty Co Ltd - H shares China Ex PRC Financials 2.1
Nexon Co Ltd Japan Information Technology 2.0
Jiangsu Yanghe Brewery JSC Ltd China Consumer Staples 2.0
All data as at [31 October 2017] .
  1. “Long %” represents PMC’s exposure to physical holdings and long derivatives (of stocks and indices) as a percentage of PMC's net asset value. “Net %” represents PMC’s exposure to physical holdings and both long and short derivatives (of stocks and indices) as a percentage of PMC's net asset value. "Other" includes short positions of indices.
  2. “Long %” represents PMC’s exposure to physical holdings and long derivatives (of stocks and indices) as a percentage of PMC's NAV. “Net %” represents PMC’s exposure to physical holdings and both long and short derivatives (of stocks and indices) as a percentage of PMC's NAV. “Currency %” represents PMC’s currency exposure as a percentage of PMC's NAV, taking into account currency hedging.
  3. The “Top 10 Positions” table shows PMC’s top 10 long stock positions (through physical holdings and long derivatives) as a percentage of PMC's net asset value.

Board & Governance

Board of Directors & Company Secretary

Bruce Coleman, CA, FFin, BSc, BCom

Chairman since 5 June 2015, Independent Non-Executive Director and member of the Audit and Risk Committee since April 2004

Mr Coleman has worked in the finance and investment industry since 1986. He was the CEO of MLC Investment Management from 1996 to 2004, and has held various directorships within MLC Limited, Lend Lease and the National Australia Banking group. Mr Coleman also served as a non-executive director of Platinum Asset Management Limited from 2007 to 2017.

Richard Morath, BA, FIAA, ASIA

Independent Non-Executive Director and Chairman of the Audit and Risk Committee since March 2009

Mr Morath has over 41 years of experience in life insurance, funds management, banking and financial planning. He is currently a non-executive director and the chairman of the Advice & Licences Boards of all Financial Planning companies in National Australia Bank/MLC and the chairman of National Australia Trustees. Mr Morath is also a director of JANA Investment Advisors Limited, BNZ Life and BNZ Investments Services Limited, and Wealth Defender Equities Limited.

Jim Clegg, BRurSc (Hons), GradDip AgEc

Independent Non-Executive Director and member of the Audit and Risk Committee since 5 June 2015

Mr Clegg has over 27 years of experience in the financial services industry. He has been a director of Godfrey Pembroke, Berkeley Group and Centric Wealth. Mr Clegg also serves as a trustee of the Walter & Eliza Hall Trust.

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 Capital Limited
ASX ticker code PMC
ACN 063 975 431
ABN 51 063 945 431
Registered office Level 8, 7 Macquarie Place
Sydney NSW 2000
Australia
Share registry Computershare Investor Services Pty Ltd
Level 3, 60 Carrington Street
Sydney NSW 2000
Australia
 
T: +61 3 9415 4000
T: 1300 855 080 (Toll-free Australia)
F: +61 3 9473 2500
 
PO Box 2975
Melbourne VIC 3001
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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