Business Strategy and Policies

Business Strategy and Policies

Business Strategy

We believe that there are a number of problems that typically plague the funds management business:

  • As funds under management grow, managers tend to become highly dependent on a committee-based decision-making process.  Spontaneity and creativity often give way to the politics of large groups and opinions tend to regress to the conventional norm.
  • Attention is often focused on relative performance rather than wealth creation.  This behaviour is justified in terms of "controlling" the fund manager's business risk (loss of funds under management) with the idea that so long as performance is in line with the peer group, clients will be retained.  This leads to homogenous products being offered and can leave such firms bereft of differentiation either by product or performance.
  • Diverging agendas of different interest groups within large organisations tend to result in the emphasis shifting to funds gathering, often to the detriment of investment returns.  These developments raise problems of retaining key staff, keeping staff enthusiastic and energetic, rewarding staff appropriately.

Our strategy goes a long way towards solving these problems.  Our emphasis is on managing clients' money with the objective of achieving above average returns and rewarding talented staff with ownership of the firm.

Business Policies

Platinum Asset Management undertakes:

  • No payment of soft dollars to financial advisers or advisory firms.  Platinum does not receive soft dollars.
  • That all transactions will be conducted in the name of the clients, not the Manager.  Contract notes will identify the specific interests of the client and will be issued in the name of the client.
  • Not to use active selling/marketing techniques (e.g. cold calling) for any of its products.  Platinum has no sales or marketing staff and does not use external providers for such services.  Platinum will not contact you to induce you to invest in any financial product.  Should you receive a suspect phone call, we recommend that you contact the Australian Securities and Investments Commission on 1300 300 630.

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