Platinum Asia Fund (Quoted Managed Hedge Fund) - ASX:PAXX
Platinum Asia Fund (Quoted Managed Hedge Fund) - ASX:PAXX
There is a new way to access Platinum Asset Management’s global equity investment capabilities. Platinum currently offers a broad range of managed funds and listed investment companies managed by an experienced team with a proven long-term track record based in Sydney.
Platinum has launched two quoted managed funds on the ASX; one being the Platinum Asia Fund (Quoted Managed Hedge Fund) (ASX: PAXX).
PAXX is an innovative new feeder structure for ASX-AQUA funds: PAXX feeds into the existing $4 billion unlisted Platinum Asia Fund that has a 14 year track record.
Intra-day iNAV per unit*
As at 22 Sep 2017 04:14 PM
NAV per unit
As at 21 Sep 2017
* The indicative net asset value (iNAV) per unit is calculated and updated throughout the ASX trading day, having regard to the underlying fund's portfolio holdings and foreign exchange movements. The actual price at which units in the fund are traded on the ASX AQUA market may not reflect either the NAV per unit or the iNAV per unit. Refer to the PDS for further details on iNAV. The iNAV is provided by ICE Data Services and is updated during Australian Securities Exchange trading hours. It is indicative and for reference purposes only, and is subject to ICE Limitations. Powered by Factset.
|21 Sep 2017||5.1377|
|20 Sep 2017||5.0948|
|19 Sep 2017||5.0834|
|18 Sep 2017||5.1274|
|15 Sep 2017||5.0472|
|14 Sep 2017||5.0554|
|13 Sep 2017||5.0320|
|12 Sep 2017||5.0000|
Asia Ex Japan Equity Fund. AUD with active currency management.
12 September 2017 (Launch date 14 September 2017)
15% of the amount by which the Fund's return per unit exceeds the unitised return of the Fund's nominated benchmark, for the relevant period.
Additionally, the performance fees are subject to a hgih water mark.
MSCI All Country Asia ex Japan Net Index in A$.
Minimum Suggested Time Horizon
Five or more years.
Annually as at 30 June.
To provide capital growth over the long-term by investing in undervalued companies in the Asian region excluding Japan.
Where Is The Fund's Money Invested?
The Fund primarily invests in the listed securities of Asian companies. Asian companies may list their securities on securities exchanges other than those in Asia and the Fund may invest in those securities. The Fund may invest in companies not listed in Asia but where their predominant business is conducted in Asia. The Fund may invest in companies that benefit from exposure to the Asian economic region. Asia is defined as all countries that occupy the eastern part of the Eurasian landmass and its adjacent islands and is separated from Europe by the Ural Mountains. It includes the Russian Far East.
Investors in the Fund might expect the Portfolio to contain listed companies based in China, Hong Kong, Taiwan, Korea, Malaysia, Singapore, India, Thailand, Indonesia, Philippines, Sri Lanka, Pakistan and Vietnam.
The Portfolio will ideally consist of 50 to 100 securities that Platinum believes to be undervalued by the market. Cash may be held when undervalued securities cannot be found. Platinum may short sell securities that it considers overvalued. Refer further to the 'Monthly Updates’ above.
The Portfolio will typically have 50% or more net equity exposure.
The Portfolio is constructed in accordance with Platinum’s 'Investment Process’.
This Fund May Be Suited To You If You
- Believe in the long-term wealth creation potential of share investments.
- Wish to achieve investment diversification by accessing international share market opportunities.
- Accept that returns over the shorter term may fluctuate and that returns may even be negative.
In essence, Platinum seeks a broad range of investments whose businesses and growth prospects are being inappropriately valued by the market. To do this, Platinum employs a team of specialist analysts who take a global perspective and apply screening and intensive research to pin-point outstanding opportunities.
Just as optimism and pessimism ebb and flow in stock markets, similar sentiments affect the share prices of individual companies. That is to say, there are times when events that are transitory in nature have a disproportionate effect on a company's share price, be they positive or negative. There is thus a tendency for shares to deviate significantly from their inherent trend line. The secret lies in differentiating between truly interesting companies that are facing temporary set-backs from those which have lesser businesses and face fundamental problems.
Platinum uses various devices to make sense of the universe of stocks available around the world. These include software screening which allows for the selection of companies based on very specific criteria ("screens") across a databank of several thousand companies. Platinum is able to delve deeply into cross-comparative studies of companies around the world, thereby drawing up short-lists for more intense study.
In setting these screens, Platinum may build on a hypothesis regarding social, political, or economic change. For example, the screen may seek to identify industry groups that are currently out of favour with investors.
Great store is placed on the cross-pollination of ideas and the view that increasingly more weight should be applied to the global context of a company's operations than purely regional considerations.
Generation of themes and ideas is eclectic in nature. Apart from applying numeric skills, there is a constant input from observations of the changing social and political landscape. By locating all research efforts in one place and yet operating under global mandates, Platinum is able to facilitate the free-flow of information between analysts with different geographic and industry responsibilities. While physical distance from principal markets may be an impediment, Platinum believes that distance has the great advantage of acting as a filter and has a calming influence in making objective assessments. Even so, analysts are required to travel extensively to visit the companies, their competitors and suppliers.
Once a company has been identified as a potential investment opportunity, it is investigated by the analyst who will call on the resources available to Platinum. These may include material from the company itself and its competitors, reports from stockbroking analysts, industry material and consultation with experts. In reality, this information is available to all serious participants but it is the interpretative methodology and skill that really counts. The work concludes with a detailed report being written. This is then subjected to the scrutiny of team members who meet to vigorously investigate the merits of the case. The purpose of these meetings is to expose areas of concern and potential flaws rather than to achieve a consensus. The final decision lies not with a committee but solely between the promoter of the idea and the relevant Portfolio Manager.
The investment review will highlight very specifically the achievements that are expected from the company being proposed. These vary considerably depending on the style of company involved, but among other things, would include sales and earnings targets. Failure to meet these targets would raise concern, and notwithstanding the price action, could result in the shares being sold. It is Platinum's experience that when targets are met or exceeded, the share price tends to overshoot expectations. Flexibility in selling may allow for the market's tendency to overreact.
To ensure that each analyst's work and contribution is objectively measured, stock picks are tagged, whether purchased or proposed, and the performance thereof monitored annually. This significantly affects annual bonuses.
As a consequence of the investment process, portfolios will be built-up from a series of individual stock selections rather than pre-determined asset allocations. Investment weightings will vary considerably from benchmarks such as indices issued by MSCI Inc.
In a way, portfolio building can be seen as a layering process. At any time, there will be newly introduced ideas, others that have made an initial contribution and others that are starting to tire. Care is taken to understand the inter-relationship of stocks within a portfolio.
The number of securities held by a portfolio will tend to be relatively small. Generally, there are 30 to 200 securities depending on whether the portfolio is global or regional or industry focused.
When undervalued securities cannot be found, Platinum will leave funds in cash. Therefore, after a period when the markets have performed strongly a portfolio may hold significant cash positions.
Likewise, when Platinum’s research reveals companies whose prospects are improbably refulgent and extravagantly overvalued, Platinum may short sell as a way of managing portfolio risk.
Video - Platinum's Investment Process
Investment Process Animation
For an insight into Platinum's investment process, view the animated process by clicking below.
|Click to view the animation »||Click to view the PDF »|
The Platinum Investment Process
Here is an overview of Platinum's Quoted Managed Funds PIXX & PAXX from one of our Investment Specialists Douglas Isles.
Buying and selling units works in the same way as for listed shares, as they:
- can be bought and sold anytime during ASX trading hours
- are priced on the ASX intraday, meaning you can view the price movements just as you would with shares
- have no minimum investment amount
Investors can buy or sell PAXX by contacting their stockbroker or by trading through an online broker.
Product Disclosure Statement
Trading of Units on the ASX has now commenced for the following Funds:
Platinum International Fund (Quoted Managed Hedge Fund) - ASX:PIXX
Platinum Asia Fund (Quoted Managed Hedge Fund) - ASX:PAXX
Download a PDS. By clicking here you confirm that you are not a US citizen or US tax resident. (The PDS is open to persons receiving it in Australia and New Zealand)
- What is the Platinum Asia Fund (Quoted Managed Hedge Fund), ASX: PAXX?
- What are the advantages of a quoted actively managed fund?
- What is the market making function often referred to in a quoted actively managed fund?
- How do quoted actively managed funds such as the Platinum Asia Fund (Quoted Managed Hedge Fund) differ to an ETF or LIC?
- What are the fees for the Platinum Asia Fund (Quoted Managed Hedge Fund)?
- How can investors purchase or sell units in the Platinum Asia Fund (Quoted Managed Hedge Fund)?
- What paperwork is required to access the Platinum Asia Fund (Quoted Managed Hedge Fund)?
- At what price will investors be buying or selling the Platinum Asia Fund (Quoted Managed Hedge Fund)?
- Who should I talk to if I have any questions about the Fund?
What is the Platinum Asia Fund (Quoted Managed Hedge Fund), ASX: PAXX?
PAXX is an ASX quoted version of our existing flagship fund, the Platinum Asia Fund. PAXX feeds into the Platinum Asia Fund, giving you access to Platinum Asia Fund’s portfolio composition, portfolio managers and investment strategies. The returns of PAXX may vary slightly from the returns of the Platinum Asia Fund due to different cash holdings, and gains and losses arising as a result of PAXX's market making activities.
What are the advantages of a quoted actively managed fund?
Easy access through the ASX, together with live pricing and little paperwork associated with traditional managed funds.
What is the market making function often referred to in a quoted actively managed fund?
Market makers do exactly as their name suggests i.e. they make markets by matching buy and sell orders for investors that want to trade units in the fund. The market maker provides liquidity to the market by providing quotes throughout the trading day and updating their prices to reflect changes in the underlying securities. Platinum has engaged Deutsche Securities Australia Limited as its market making agent for the Fund.
How do quoted actively managed funds such as the Platinum Asia Fund (Quoted Managed Hedge Fund) differ to an ETF or LIC?
Actively managed quoted funds such as PAXX have a trust structure and are open-ended meaning the number of units on issue can grow or shrink based on investor demand. An ETF likewise has a trust structure and is open-ended but is not actively managed and instead tracks an index. LICs have a company structure and are closed ended meaning they do not receive daily capital inflows.
What are the fees for the Platinum Asia Fund (Quoted Managed Hedge Fund)?
PAXX has a management fee of 1.10% p.a. plus a relative outperformance fee of 15%. This fee is in line with the fee structure for Platinum‘s two listed investment companies, Platinum Capital Limited (ASX: PMC) and Platinum Asia Investment Limited (ASX: PAI).
How can investors purchase or sell units in the Platinum Asia Fund (Quoted Managed Hedge Fund)?
Investors can purchase or sell units from the Fund via their stockbrokers as they would a listed security. You do not need to complete an application form or withdrawal form; you will purchase the units or receive the proceeds from the sale of units, in the same way as you would a listed security. There is no minimum number of units investors can buy or sell.
What paperwork is required to access the Platinum Asia Fund (Quoted Managed Hedge Fund)?
None, if you have an existing stockbroking account.
At what price will investors be buying or selling the Platinum Asia Fund (Quoted Managed Hedge Fund)?
Prices will be live and reflect unitholder demand and supply. However, the market maker will add liquidity during the ASX trading day with the objective of ensuring that the price closely approximates the funds iNAV. The iNAV is updated at regular intervals during the ASX trading day and is available on Platinum’s website.
Who should I talk to if I have any questions about the Fund?
For all fund related enquiries contact Platinum on 1300 726 700. For enquiries about your holding in the Platinum International Fund (Quoted Managed Fund) contact the Registrar, Link Market Services on +61 1300 554 474 or via email@example.com.
Link can provide assistance with the following:
- Update the name or address on the holding
- Provide bank details, DRP, email address or TFN instructions
- Request for forms to be emailed or posted
- Transaction history (as at settlement date)
- Off market transfer & holding merge queries
- Guidance and assistance with the Link Investor Centre
- Guidance and assistance completing & submitting Link forms
- Statement replacements
- Payment replacements.
Platinum suggests that investors consult a financial adviser and a taxation adviser prior to making any investment decision.