Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Platinum Asset Management funds downgraded

Investing in one of the Platinum Asset Management Ltd (ASX: PTM) funds to gain international share market exposure is no longer a done deal after it had a mixed outcome in its latest research ratings, with three funds downgraded and one upgraded to gold.

Investing in one of the Platinum Asset Management Ltd (ASX: PTM) funds to gain international share market exposure is no longer a done deal after it had a mixed outcome in its latest research ratings, with three funds downgraded and one upgraded to gold.

Research house Morningstar downgraded Platinum International, Platinum Global and Platinum Unhedged to bronze due to “a lack of stability outside the top ranks” of management.

However, management has not been a problem for Platinum Asia, managed by Joseph Lai and Morningstar made an exception for the fund and upgraded it to its esteemed gold rating.

Kerr Neilson handed the portfolio manager role for the three funds to Clay Smolinski in 2018 but remains an analyst and co-investor in the strategy. Chief executive Andrew Clifford is a co-portfolio manager of Platinum International.

Outside the top ranks, cracks emerged when portfolio manager Simon Trevett departed in 2017 followed by analyst Curtis Cifuentes and then in 2018, long-time Asia analyst Doug Huey.

The investment performance has been in the third and fourth quartile for these funds for the past few years.

Matthew Wilkinson, senior analyst at Morningstar says: “While we still applaud the analysts’ research overall, they have slipped from being one of the best global equity teams in our view.”

Platinum invests for absolute returns rather than trying to beat the benchmark. Platinum’s house style is valuation-conscious, well-researched, and often thematically tilted.

The funds are underweight US equities at 36.5%, up from 19% 12 months prior. Platinum is overweight Asian companies, particularly India and China arguing that opportunities have greater value, even considering country-specific risks.

Wilkinson says: “It’s one where the portfolio managers express their views via short-selling, currency positions, net exposure and meaningful sector and regional tilts.”

Platinum Unhedged is a simpler and more concentrated version of Platinum International, removing the complexity of stock, index, and currency shorting.

Michael Malseed, associate director at Morningstar says: “Platinum Unhedged remains a solid offering, but in a highly competitive category, it has slid a rung down the rankings.”

The research house recently named Platinum International among some of the best performing global equities funds during COVID-19 volatility.

“Despite impressive downside protection, the process requires many investment settings to be right to consistently beat the benchmark,” Wilkinson says.

Platinum’s affinity for dedicating research resources and investing in the Asia region landed Platinum Asia as Morningstar’s top pick in its Asia ex-Japan category.

The core of the investment process is fundamental-based in 50 to 100 names across the Asian region. The focus is identifying companies that are underappreciated by the market.

Malseed says: “In the fast-growing Asian region, this results in the portfolio having a greater growth bias than the typically value-leaning Platinum International strategy.”

Lai has led the strategy since late 2014 and has a dedicated team of five analysts but also the ability to call on the expertise of the Platinum team including Clifford and Neilson which Morningstar says gives this strategy “considerable intellectual firepower”.

Analysts use quantitative screening to narrow down the universe for ideas and then submit a detailed investment report, which senior personnel scrutinise to identify any flaws in the investment case.

Malseed notes that these meetings are to convince portfolio manager Joseph Lai to invest in the stock.

“Our confidence in Lai’s portfolio management skills has strengthened to the point where we consider him best in class. He consistently demonstrates strong insight and undertakes portfolio management with thoughtful consideration,” says Malseed.

Platinum Asia is down 0.92% over the quarter, ranking them in the top quartile. The fund has returned 6.76% over a one-year period and 10.13% over three years.

The downgraded funds have suffered poor performance this year and over the last 12 months.

Platinum Global Fund is down 14.88% in the March quarter, lost 7.61% over a one-year period and returned 3.72% over a three-year period. Its performance ranked it in the fourth quartile of global equity managers.

Platinum International Fund is down 11.36% in the March quarter, ranking in the third quartile. It is down 3.67% over a one-year period and returned 4.94% over three years.

The MSCI World Ex Australia Index is down 8.86 in the March quarter and returned 2.25% over one year and 8.41% over three years.

Platinum Unhedged has lost 18.51% this quarter, ranking in the bottom quartile. It’s down 10.30% over one year and returned 3.69% over three years.

The Platinum International, Asia and Unhedged have two share classes (C and P), Platinum Global only has Class C. Class C charges a base fee of 1.35% per year, while Class P charges a base of 1.1% per year. Both classes have a performance fee of 15%.

Annabelle writes engaging stories just like this one for The Inside Investor.

[ls_content_block id=”19823″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content