Q&A

Q&A

About the manager

Why Should I Invest With Platinum?

As an independent fund manager, majority-owned by the staff, we manage your money (and ours) to create wealth.  We attempt to achieve systematic absolute returns; in the past our long-term returns have been better than most world-wide, but the future will tell...

Platinum has an independent and different style of investment management, which is driven by a thematic stock picking approach.  The disposition of a Fund’s assets is determined largely by the availability of companies regarded as undervalued by Platinum rather than by macro economic modelling (so-called top down asset allocation) or by reference to global share index weightings (so-called benchmarking).

The Platinum Trust Funds can be used as stand-alone investment options for international exposure or may be used to complement the investment styles of other managers.

When Should I Invest?

Like starting a business, there is "always a better time" - but how do you identify it and when do you get started is the question.

Who Owns Platinum?

Platinum is owned by Platinum Asset Management Limited, a company listed on the Australian Securities Exchange (code PTM).  Staff interests hold the majority of the issued shares.

How Long Has Platinum Been Managing Money?

Platinum was founded in 1994 and launched its first funds in June 1994.  The portfolio managers have worked together for between 7 and 23 years.

Do Management Invest In Platinum's Funds?

The firm and its management, personally, have funds invested in Platinum's investment products.  Many of the staff have their superannuation also invested in the funds alongside Platinum's clients.

Is Platinum a "Value" Manager?

Platinum seeks a broad range of existing companies with prices that are well below what we perceive to be their intrinsic values.  As such, we call ourselves stock pickers. Shares selling below their intrinsic values are not confined to those with low price-to-earnings or low price-to-book ratios.  A company's growth prospects are an important element of a company's intrinsic value.

Is Platinum a Hedge Manager?

Platinum does not regard itself as hedge fund manager.  We only partially hedge our share holdings with short sales and will generally have net long positions of 50% or more.

What is Platinum's View On Ethical Investing?

Platinum regards the subject of ethical investing as highly complex and points to the contradictions and conflicts that are an essential element of the capitalist system. Platinum has no way to assess the individual beliefs and values of our Investors. This is made more difficult as multi‑culturalism has become widespread in the increasingly globalised world.

Cognisant of a diversity of views on these subjects, Platinum has no formalised policy of considering labour standards or environmental, social or ethical investment criteria in selecting, retaining and realising investments. Platinum acknowledges that, on occasions, these matters have the potential to impact the outcome associated with specific investments and, as such, to the extent that these are considered to pose a risk or potential benefit to the investment, it is taken into account.

To take more formal account of such matters Platinum would need to develop a template of ethical values and considerations that satisfy the majority of unit holders on matters including, but not limited to, labour standards, environmental impacts, social intercourse, governance behaviour and standards, and national institutions. In Platinum’s view it is not possible to create such a template without unduly imposing a set of values and considerations on all Investors not shared by all.

Surely Small Firms Are At A Disadvantage To The Big Multi-Nationals?

This can be true, but often the large juggernauts surrender flexibility and have difficulty in bringing their substantial resources to bear.

How Can You Invest Globally While Based In Sydney?

Remote locations can contribute to filtering information and remove the hustle and bustle of day-to-day market noise.  Nevertheless, the investment teams spend many weeks a year travelling to visit companies.

Do "Foreign" Languages Cause You Problems?

Almost never, apart from having some linguists, the universal language of business is increasingly English.

How Can You Possibly Cover So Many Companies When Running Global Funds?

You should note two things.  Firstly, we are looking for neglected companies and, secondly, our cut-off point is companies with a market capitalisation of over US$1 billion.  These two factors, combined with looking at the world according to six global sectors such as financials, information technology etc, and in combination with our proprietary screening process, make the job manageable.

When Will Size Start To Reduce Your Investment Returns?

We don't know.  However, our main focus is on developing the investment team to maintain maximum flexibility and responsiveness.

Where Are Platinum's Offices?

Platinum has a single office located in Sydney, Australia.  Platinum does not have any affiliations other than MLC in Australia and Optima Fund Management in New York.

What is the Relationship Between Platinum Asset Management and Platinum Capital Limited?

Platinum Asset Management is the investment manager of Platinum Capital Limited.

Is Platinum Part Of MLC?

No.  Platinum has a joint venture arrangement with MLC with respect to the MLC - Platinum Global Fund where Platinum is the investment manager and MLC takes care of the client servicing and marketing.

What is the Difference in Investment Mandates Between Your Four Global Offerings - Platinum International Fund, Platinum Capital Limited, Platinum Global Fund - ASX 'mFund' and the MLC Platinum Global Fund?

The differences in each product's investment mandates primarily relates to market risk management.  The MLC Platinum Global Fund cannot short sell individual companies, only indices such as the S&P or Nasdaq and the Platinum Global Fund - ASX 'mFund' cannot short sell individual companies or indices but can use derivatives for currency management, whereas the Platinum International Fund and Platinum Capital Limited can short sell both indices and individual companies.  In addition, the products' portfolios hold similar stocks, but there are differences in weightings owing to cash inflows and the fact that the listed company (Platinum Capital) is a closed end fund.

Does Platinum Use Active Selling or Marketing Techniques (e.g. Cold Calling, Junk Mail)?

No.  Platinum does not use active selling techniques for any of its products.  Platinum has a client liaison department, but no sales or marketing staff.  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.

About Our Platinum Trust Funds

What Are The Fees And Charges To Invest In The Funds / Unit Classes?

Platinum does not charge any entry, exit or trail fees.  Platinum receives a fee of 1.35% pa.  You will also incur a buy-sell spread (0.5% of the unit price) when your money moves in or out of the Fund / Unit Class.  Miscellaneous fees in respect of bank dishonours, electronic transfer, tracing and BPAY may be payable.  Refer to the current Product Disclosure Statement (PDS) for the Funds / Unit Classes.  Percentages quoted above are inclusive of GST and are in respect of the Standard Investment Option in the Funds / Unit Classes.

What is the Buy-Sell Spread?

The buy-sell spread is 0.5% of a Fund's / Unit Class' unit price.  This spread is used to cover the cost of buying or selling the underlying securities in a Fund that result from an investor's application or withdrawal.

The buy-sell spread incorporates 0.25% buy costs (which are built into a Fund’s entry price) and 0.25% sell costs (which are built into a Fund’s / Unit Class' exit price).  The buy and sell costs are not fees paid to Platinum – they are retained in a Fund / Unit Class to cover the transaction costs associated with an investor entering or exiting a Fund / Unit Class.

Do Platinum Funds Pay Distributions?

The Funds / Unit Classes distribute annually at 30 June.  Distributions are not pro-rated for the duration of your investment during the tax year.  If you are a unit holder as at 30 June, you will receive the full distribution.  Distribution amounts are dependent on portfolio turnover in any given year and as such, vary from year to year.  There may be times when no distribution is paid.

Can I Establish A Regular Investment Plan?

You can regularly add to your existing investments monthly or quarterly.  A minimum investment of A$200 or NZ$200 per month or quarter applies (for each Fund / Unit Class you select under the Plan).  To nominate a Fund / Unit Class under the Regular Investment Plan you must have an existing investment in that Fund / Unit Class.

To initiate this service, complete section 11.5 of the ‘Application Form for New Investment’(if a new investment is being made), or the 'Regular Investment Plan Form’.

If you select a New Zealand ‘Financial Institution Account’ for the service, then you must (instead) complete the New Zealand specific Direct Debit Authority.

Are The Platinum Funds Permitted To Borrow?

There is no restriction on borrowing in the Funds’ Constitution.  Platinum’s policy is not to borrow on behalf of any Fund.  If we amend this policy, we will notify Investors by placing a notice on our website.  Short-term overdrafts can arise from trade settlement delays.  These are permitted.

Are the Platinum Funds Permitted To Engage In Securities Lending?

The Funds’ Constitutions permit Platinum to enter into securities lending arrangements. Platinum’s policy is not to participate in securities lending.  If we amend this policy, we will notify Investors by placing a notice on our website.

Is There A Cut-Off To Receive the Distributions And Make Changes To My Distribution Nomination And Account Payment Details?

As the Funds / Unit Classes are forward priced, the last day that a transaction can be received for processing (so as to be included for the 30 June distribution) is the Business Day prior to 30 June. Note that the processing cut-off time on that day is 3:00pm (AEST).  Where 30 June falls on a non-Business Day, this cut off is two (2) Business Day prior to the last Business Day prior to 30 June.

For a change (to your distribution nomination and account payment details) to be reflected in the next distribution, your written advice must be received by us no later than five Business Days prior to 30 June.

When Can I Transact In The Funds / Unit Classes?

You can transact on any Business Day when banks are open for business in Sydney, Australia (which means a day other than a Saturday, Sunday, public or bank holiday).

Can An Existing Investor Transfer Units In the Funds / Unit Classes?

Yes, at Platinum's discretion. For any approved transfer, we require an Australian Standard Transfer Form.  Generally a transfer form is used to move assets between custodians, trustees, margin lenders etc.  You will also need to advise Platinum of the transferee’s account name and number.  If the transferee is a new investor, an Application Form from the current Product Disclosure Statement (PDS) is required to be completed.

Are the Platinum Trust Funds Retail Or Wholesale Funds?

The Funds / Unit Classes are classified as wholesale funds as there are no entry fees and the minimum investment is A$10,000 or NZ$10,000 per Fund / Unit Class and the minimum account balance is A$10,000 per Fund / Unit Class.

Are Platinum's Products Regulated?

Platinum holds an Australian Financial Services Licence (No. 221935) and is the responsible entity of the Platinum Trust Funds.  It performs the duties of both trustee and manager and is responsible for the proper and efficient administration, management and valuation of the Funds, including all investment decisions.  The working of each Fund is regulated by the Corporations Act 2001 (Cth), its constitution and the general law of Australia.  The Australian Securities and Investments Commission (ASIC) regulates the financial markets, securities, futures and corporations in Australia.

What Are The APIR Codes For The Various Platinum Funds?

PLA0002AU Platinum International Fund - Class C
PLA8968AU Platinum International Fund - Class P

PLA0006AU Platinum Unhedged Fund - Class C
PLA0779AU Platinum Unhedged Fund - Class P

PLA0004AU Platinum Asia Fund - Class C
PLA9999AU Platinum Asia Fund - Class P

PLA0001AU Platinum European Fund - Class C
PLA5576AU Platinum European Fund - Class P

PLA0003AU Platinum Japan Fund - Class C
PLA2445AU Platinum Japan Fund - Class P

PLA0100AU Platinum International Brands Fund - Class C
PLA2056AU Platinum International Brands Fund - Class P

PLA0005AU Platinum International Health Care Fund - Class C
PLA6965AU Platinum International Health Care Fund - Class P

PLA0101AU Platinum International Technology Fund - Class C
PLA6044AU Platinum International Technology Fund - Class P

Are There Restrictions As To Who Can Invest In The Platinum Funds?

The Funds / Unit Classes are open for investment to persons receiving the Product Disclosure Statement (PDS) in Australia and New Zealand.  Applicants residing outside Australia and New Zealand must warrant (on the Application Form) that they have the authorisation to invest under the laws of their countries, without the offer contained in the PDS being registered with, or otherwise regulated by, the relevant regulator in these jurisdictions. 

Please note that owing to legislative restrictions in the UKCanada and Ireland, persons from these countries will not be able to invest, unless they meet specific professional investor criteria or can rely upon another investment exemption under their country’s laws.  You should contact Investor Services to find out the verification information you will need to supply.

American regulation prevents US citizens from investing in the Funds / Unit Classes.

Are The Funds Available Through Any Platforms (i.e. Wraps or Master Trusts?)

Yes, the Funds are on various Platform offerings.

Can I Provide A 'Care of' or My Financial Adviser's Address When Applying For Units?

No.

The Australian Securities and Investments Commission has issued a QFS on this matter, which is reproduced below:

QFS 127
Published 11 November 2003

If a retail client chooses to acquire a financial product, such as an interest in a managed investment scheme, and needs to fill out an application form to do so, what address should the client provide on that application form?

Section 1016A of the Corporations Act 2001 requires that application forms are attached to, accompany or are derived from a Product Disclosure Statement (PDS).  This is to maximise the likelihood that the PDS has been received and read by the applicant before applying for the product. 

Regulation 7.9.74(1) of the Corporations Regulations 2001 provides that the application form must contain the following information:

  • (a) the applicant's name;
  • (b) the applicant's date of birth;
  • (c) the applicant's address.

In ASIC's view, reg 7.9.74(1) is a stand-alone requirement.  This means it does not contemplate that the address can be other than the address of the actual applicant.  This allows the product issuer to have a means of identifying the applicant.  However, the application may also contain room for a separate address for correspondence purposes.

We note it is common practice for some licensees or their representatives to provide their own business address as their client's address.  In our view this is not permissible under the regulation. 

Our view is consistent with s1015C of the Corporations Act 2001, which stipulates how a PDS is to be 'given' to a client.  It provides that a PDS may be given to a person, or the person's agent, but cannot be given to a person's agent if the agent is acting in the capacity of a financial services licensee.

The provision of the licensee's address for correspondence purposes is not prohibited.  We note, however, that to comply with good disclosure principles and the law it may be appropriate in some circumstances for disclosure documents and or periodic statements to be sent directly to the purchaser of the product.  We therefore suggest that it is preferable for the correspondence address to also be the client's own address, and not the licensee's address.

Platinum suggests that investors consult a financial adviser and a taxation adviser prior to making any investment decision.
About Our ASX 'mFund' - Platinum Global Fund

The Platinum Global Fund is part of the ASX mFund Settlement Service (“mFund”)?  What is mFund?

An mFund product is an unlisted managed fund admitted for settlement through the Australian Securities Exchange (ASX) and available to investors through the mFund Settlement Service.  This Service enables you to buy and sell units in the Platinum Global Fund via the same broking services you use to transact shares i.e. the ASX CHESS platform.

Please visit the ASX website for further information.

How to Invest in the Platinum Global Fund?

There are two avenues available:

-          Apply for units through mFund by placing a buy order for units and your application money with your licensed broker or financial adviser who uses a stockbroking service on your behalf, or

-          Directly by completing the Application Form included at the back of the current Product Disclosure Statement.

For further information, please go to the ‘How to invest’ page.

What Brokers are utilising the mFund service?

Please visit http://www.asx.com.au/mfund/foundation-members.htm#tabs-218 to view an up-to-date list of brokers on the mFund service.

What Are The Fees And Charges To Invest In The Funds?

Platinum does not charge any entry, exit or trail fees.  Platinum receives a fee of 1.35% pa.  You will also incur a buy-sell spread (0.5% of the unit price) when your money moves in or out of the Fund.  Miscellaneous fees in respect of bank dishonours, electronic transfer, tracing and BPAY may be payable.  Refer to the current Product Disclosure Statement (PDS).  Percentages quoted above are inclusive of GST.

What is the Buy-Sell Spread?

The buy-sell spread is 0.5% of the Fund's unit price.  This spread is used to cover the cost of buying or selling the underlying securities in the Fund that result from an investor's application or withdrawal.

The buy-sell spread incorporates 0.25% buy costs (which are built into the Fund’s entry price) and 0.25% sell costs (which are built into the Fund’s exit price).  The buy and sell costs are not fees paid to Platinum – they are retained in the Fund to cover the transaction costs associated with an investor entering or exiting the Fund.

Does the Platinum Global Fund Pay a Distribution?

The Fund distributes annually at 30 June.  Distributions are not pro-rated for the duration of your investment during the tax year.  If you are a unit holder as at 30 June, you will receive the full distribution.  Distribution amounts are dependent on portfolio turnover in any given year and as such, vary from year to year.  There may be times when no distribution is paid.

Can I Establish A Regular Investment Plan?

You can regularly add to your existing investments monthly or quarterly.  A minimum investment of A$200 or NZ$250 per month or quarter applies (for each Fund you select under the Plan).  To invest under the Regular Investment Plan you must have an existing investment in the Fund.

To initiate this service, complete section 11.5 of the ‘Application Form for New Investment’(if a new investment is being made), or the Regular Investment Plan Forms 'mFund' or 'Direct'.

If you select a New Zealand ‘Financial Institution Account’ for the service, then you must (instead) complete the New Zealand specific Direct Debit Authorities 'mFund' or 'Direct'.

Is the Platinum Global Fund Permitted To Borrow?

There is no restriction on borrowing in the Fund’s Constitution.  Platinum’s policy is not to borrow on behalf of the Fund.  If we amend this policy, we will notify Investors by placing a notice on our website.  Short-term overdrafts can arise from trade settlement delays.  These are permitted.

Is the Platinum Global Fund Permitted To Engage In Securities Lending?

The Fund’s Constitutions permit Platinum to enter into securities lending arrangements. Platinum’s policy is not to participate in securities lending.  If we amend this policy, we will notify Investors by placing a notice on our website.

Is There A Cut-Off To Receive the Distributions And Make Changes To My Distribution Nomination And Account Payment Details?

As the Fund is forward priced, the last day that a transaction can be received for processing (so as to be included for the 30 June distribution) is the Business Day prior to 30 June. Note that the processing cut-off time on that day is 3:00pm (AEST).  Where 30 June falls on a non-Business Day, this cut off is two (2) Business Days prior to the last Business Day prior to 30 June. 

For a change (to your distribution nomination and account payment details) to be reflected in the next distribution, your written advice must be received by us no later than five Business Days prior to 30 June.

When Can I Transact In The Fund?

You can transact on any Business Day when banks are open for business in Sydney, Australia (which means a day other than a Saturday, Sunday, public or bank holiday).

Can An Existing Investor Transfer Units In the Fund?

Yes, at Platinum's discretion. For any approved transfer, we require an Australian Standard Transfer Form either stamped with duty paid or marked as exempt by the NSW Office of State Revenue.  Download a copy of the Standard Form.  Generally a transfer form is used to move assets between custodians, trustees, margin lenders etc.  You will also need to advise Platinum of the transferee’s account name and number.  If the transferee is a new investor, an Application Form from the current Product Disclosure Statement (PDS) is required to be completed.

Is the Platinum Global Fund a Retail Or Wholesale Fund?

The Fund is classified as a wholesale fund as there are no entry fees and the minimum investment is A$10,000 or NZ$10,000 and the minimum account balance is A$10,000.

Is the Platinum's Product Regulated?

Platinum holds an Australian Financial Services Licence (No. 221935) and is the responsible entity of the Platinum Global Fund.  It performs the duties of both trustee and manager and is responsible for the proper and efficient administration, management and valuation of the Fund, including all investment decisions.  The Fund is regulated by the Corporations Act 2001 (Cth), its constitution and the general law of Australia.  The Australian Securities and Investments Commission (ASIC) regulates the financial markets, securities, futures and corporations in Australia.

What Is The APIR Codes For The Platinum Global Fund?

PLA0017AU

Are There Restrictions As To Who Can Invest In The Platinum Global Fund?

The Funds are open for investment to persons receiving the Product Disclosure Statement (PDS) in Australia and New Zealand.  Applicants residing outside Australia and New Zealand must warrant (on the Application Form) that they have the authorisation to invest under the laws of their countries, without the offer contained in the PDS being registered with, or otherwise regulated by, the relevant regulator in these jurisdictions. 

Please note that owing to legislative restrictions in the UKCanada and Ireland, persons from these countries will not be able to invest, unless they meet specific professional investor criteria or can rely upon another investment exemption under their country’s laws.  You should contact Investor Services to find out the verification information you will need to supply.

American regulation prevents US citizens from investing in the Funds.

Is The Fund Available Through Any Platform (i.e. Wraps or Master Trusts?)

Not currently having only launched in September 2014.

Can I Provide A 'Care of' or My Financial Adviser's Address When Applying For Units Directly?

No.

The Australian Securities and Investments Commission has issued a QFS on this matter, which is reproduced below:

QFS 127
Published 11 November 2003

If a retail client chooses to acquire a financial product, such as an interest in a managed investment scheme, and needs to fill out an application form to do so, what address should the client provide on that application form?

Section 1016A of the Corporations Act 2001 requires that application forms are attached to, accompany or are derived from a Product Disclosure Statement (PDS).  This is to maximise the likelihood that the PDS has been received and read by the applicant before applying for the product. 

Regulation 7.9.74(1) of the Corporations Regulations 2001 provides that the application form must contain the following information:

  • (a) the applicant's name;
  • (b) the applicant's date of birth;
  • (c) the applicant's address.

In ASIC's view, reg 7.9.74(1) is a stand-alone requirement.  This means it does not contemplate that the address can be other than the address of the actual applicant.  This allows the product issuer to have a means of identifying the applicant.  However, the application may also contain room for a separate address for correspondence purposes.

We note it is common practice for some licensees or their representatives to provide their own business address as their client's address.  In our view this is not permissible under the regulation. 

Our view is consistent with s1015C of the Corporations Act 2001, which stipulates how a PDS is to be 'given' to a client.  It provides that a PDS may be given to a person, or the person's agent, but cannot be given to a person's agent if the agent is acting in the capacity of a financial services licensee.

The provision of the licensee's address for correspondence purposes is not prohibited.  We note, however, that to comply with good disclosure principles and the law it may be appropriate in some circumstances for disclosure documents and or periodic statements to be sent directly to the purchaser of the product.  We therefore suggest that it is preferable for the correspondence address to also be the client's own address, and not the licensee's address.

 

 

 

Platinum suggests that investors consult a financial adviser and a taxation adviser prior to making any investment decision.