Platinum International Fund (PLA0002AU) Report & Performance

What is the Platinum International Fund fund?

Platinum International Fund aims to provide capital growth over the long term by investing in undervalued companies from around the world. The Fund 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.
  • The Fund primarily invests in listed securities.
  • The Portfolio will ideally consist of 70 to 140 securities that Platinum believes to be undervalued by the market.
  • Platinum may short sell securities that it considers overvalued.
  • The Portfolio will typically have 50% or more net equity exposure. Platinum may use Derivatives for risk management purposes and to take opportunities to increase returns.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Platinum International Fund

Platinum International Fund Fund Commentary September 30, 2023

The Fund (C Class) returned -0.2% for the quarter.

The main factor driving markets over the quarter was changing expectations for interest rates globally. While we believe the tightening cycle is either at or near its end, significant interest rates cuts seem unlikely, especially in the US where the economy remains robust on the back of ongoing fiscal stimulus. In China the drag of a weak property sector remains the key concern and although the government continues to implement policy measures to boost the economy and the property market, stock markets – for now – remain unconvinced.

In our portfolio, strong contributors to performance included pulp producers Suzano (share price up 22% over the quarter) and UPM (up 19%) as a result of higher pulp prices.

PDD Holdings (up 40%), a Chinese e-commerce business, produced strong earnings as Chinese consumers boosted their online purchases and new competition rules allowed the company to take market share. UBS Group (up over 22%) rallied as the market gained confidence in the value of its Credit Suisse acquisition. Our short positions added modestly to overall returns.

Detractors included our investments in airlines Wizz Air (down 31%) and InterGlobe Aviation (down 9%) as a result of concerns over rising fuel prices. LG Chem (down 25%) fell due to concerns that fading momentum in global electric vehicle (EV) sales would affect results from their EV battery business.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Platinum International FundPLA0002AUManaged FundsForeign EquityLong ShortForeign Equity - Long Short IndexDeveloped -World Index8.23 BN1.35%00.3%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Platinum International Fund1.18%4.16%6.53%4.36%8.7%6.47%9.38%10.26%-4.7%-10.88%-18.33%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Platinum International FundForeign Equity - Long Short Index-5.28%-0.91%NA%NA%NA%0.74.58%5.41%0.810.86

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Platinum International FundYes-https://www.platinum.com.au/-

Product Due Diligence

What is Platinum International Fund

Platinum International Fund is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Long Short Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Platinum International Fund has Assets Under Management of 8.23 BN with a management fee of 1.35%, a performance fee of 0 and a buy/sell spread fee of 0.3%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Platinum International Fund has returned 1.18% in the last month. The previous three years have returned 4.36% annualised and 10.26% each year since inception, which is when the Platinum International Fund first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Platinum International Fund first started, the Sharpe ratio is NA with an annualised volatility of 10.26%. The maximum drawdown of the investment product in the last 12 months is -4.7% and -18.33% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Platinum International Fund has a 12-month excess return when compared to the Foreign Equity - Long Short Index of -5.28% and -0.91% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Platinum International Fund has produced Alpha over the Foreign Equity - Long Short Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Foreign Equity - Long Short Index category, you can click here for the Peer Investment Report.

What level of diversification will Platinum International Fund provide?

Platinum International Fund has a correlation coefficient of 0.86 and a beta of 0.7 when compared to the Foreign Equity - Long Short Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Platinum International Fund and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Platinum International Fund with the Developed -World Index?

For a full quantitative report on Platinum International Fund compared to the Developed -World Index, you can click here.

Can I sort and compare the Platinum International Fund to do my own analysis?

To sort and compare the Platinum International Fund financial metrics, please refer to the table above.

Has the Platinum International Fund been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Platinum International Fund?

If you or your self managed super fund would like to invest in the Platinum International Fund please contact via phone or via email .

How do I get in contact with the Platinum International Fund?

If you would like to get in contact with the Platinum International Fund manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Platinum International Fund. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - June 30, 2023

The Fund (C Class) returned -0.9% for the quarter compared with the market’s return of 6.8%. Over the year, the Fund returned 13.9% compared with the market’s return of 20.4%.1

Three main factors led to the Fund underperforming the market over the past quarter:

• The recovery in markets this year has been led by an extraordinary bounce in the technology sector, up 40% in the first six months of the year and 13% for the quarter.2

• China’s stock markets performed poorly over the quarter due to concerns about the subdued nature of the country’s economic rebound and ongoing political tensions with the US. As a result, the Fund’s holdings in Chinese companies reduced returns by 1.5%.

• The Fund’s positioning remained cautious, with an average net invested position of 71% and an average short position of 15%. Our short positions detracted 2.5% from performance over the quarter. While this is a disappointing outcome in the short term, we remain of the view that the popular growth stocks that have driven the market this quarter remain unattractive and are best avoided, and better returns can be found in out-offavour areas such as China. We will expand on this later in the report.

Performance Commentary - March 31, 2023

The Fund (C Class) returned 17.7% for the year, a 13.9% outperformance of the market, which returned 3.8%.1 The Fund’s long portfolio performed well, returning 10.7% (for an overall contribution to performance of 8.4%), which was supplemented by a strong 8.8% contribution from our short positions.2 The year was characterised by the deflating of the speculative bubble in growth stocks and illustrates the benefit of Platinum’s investment approach of seeking out opportunities in areas that are ‘out of favour’ with investors and avoiding the ‘much-loved’ investment ideas of the day. We believe the past year represents a strong start to the Fund’s performance in the current bear market in global equities.

The Fund returned 5.4% for the quarter, compared with the market’s return of 8.7%. Market returns in local currency terms were similar across regions, with Europe up 8.5%, North America up 7.4% and Japan up 7.1%, with Asia ex-Japan being the exception, up only 4.5%.3 However, there were significant divergences by sector, as investors responded to the failures of Silicon Valley Bank and Credit Suisse by seeking out perceived safe havens in growth stocks and selling economically sensitive sectors. Information Technology was up 20.3% while Energy fell 3.5%. Those sectors in the eye of the storm also performed poorly, with Financials down 1.8% and Real Estate up 0.5%.

Performance Commentary - December 31, 2022

The Fund (C Class) returned 10.4% over the quarter.

The US equity market underperformed the rest of the world during the quarter, as markets started factoring in the impact of tighter fiscal and monetary policies on future company earnings. By region, in local currency terms, Europe led the way, returning 10.6%, followed by Asia ex-Japan (+8.2%) and North America (+6.9%).

In line with these outcomes, our European holdings dominated the largest contributors to performance, with financial stocks Intesa Sanpaolo (+22%), Beazley (+21%), Erste (+32%) and Raiff eisen Bank International (+26%) amongst the best performers. In China, online travel agent Trip.com (+26%) was a strong performer on the back of China’s pivot away from its zero-COVID policy. Heavy-duty truck engine manufacturer Weichai Power (+41%), insurer Ping An Insurance (+32%) and Tencent (+25%) also provided strong performance. Short positions contributed 0.9% to returns.

Key detractors at an individual stock level included Allfunds Group (-14%), which was impacted by volatile markets and the sell-down of significant stakes by two large shareholders, and precision components manufacturer MinebeaMitsumi (-8%), which weakened on a stronger Japanese yen.

Performance Commentary - September 30, 2022

The Fund (C Class) returned -1.3% over the quarter.¹ The largest contributors to performance were an eclectic mix, including InterGlobe Aviation (+16%), UPM-Kymmene (+12%), and Microchip (+5%). European fi nancials (Raiffeisen Bank +18%, Beazley +13%, Allfunds +3%) also contributed to performance. Shorts contributed 1.3%. Our Chinese holdings were key detractors from performance over the quarter, with major holdings Weichai Power (-40%), Alibaba (-30%), and Tencent (-25%) falling sharply.

Over the year, the Fund returned -6.4% compared with the market’s return of -10.9%. In the fi rst nine months of 2022, a period that coincides with the beginning of the current bear market in global equities, the Fund returned -6.6%, well ahead of the market’s decline of -15.9%. When examining the performance of global stock markets over the last 12 months, there have been some drivers of market performance that we have clearly anticipated and for which the portfolio has been well positioned, and others for which the portfolio holdings were not ideal.

Having said that, as long-term investors, we are making decisions based on views of the long-term earnings power of businesses, knowing full well that short-term economic trends may not be in our favour. Indeed, it is often the fear of short-term trends that provides the greatest opportunities. Still, given the extraordinary macroeconomic environment that has been the backdrop for investing over the last 12 months, it is worth examining how these variables have contributed to or detracted from the Fund’s returns.

Performance Commentary - June 30, 2022

The Fund (C Class) returned -1.9% for the quarter and -11.5% for the year.¹

The economic situation in Europe is deteriorating. Most worryingly, consumer price inflation accelerated to 8.1% per annum in May. This compares to a rate of under 2% a year ago.²

A silver lining is that underlying or ‘core’ inflation (excluding food, energy, alcohol and tobacco) is lower in Europe (3.8%) than in the United States (6.0%). The implication is that this affords the European Central Bank the ability to tighten monetary conditions with less urgency and aggression than the US Federal Reserve. This will see less pressure applied to asset owners and large borrowers, namely governments.

However, one key reason that core inflation is lower in Europe is that wage growth is running at a comparatively pedestrian 2.7% per annum. While this may spare the region from more aggressive rate hikes, it puts ordinary households under signifi cant stress as their purchasing power erodes. Indeed, real household incomes are currently falling 5.4% per annum.

Unsurprisingly, consumer sentiment has plummeted to levels only previously observed during times of crisis.

For now, the unemployment rate remains low, by European standards, at 6.8%. This should be supported in the near term by business sentiment, which remains comparatively buoyant despite having pulled back from recent highs.

However, these data are backward-looking. It is unrealistic to expect this situation to persist with a strained household sector, the war in Ukraine, ongoing supply-chain disruptions, rolling lockdowns in China, rising interest rates and potential energy shortages.

Against this backdrop, the relatively resilient performance of European equity markets – at least up until early June – has been remarkable. We took the decision in late March to

position the portfolio much more defensively. Our net

invested position was reduced from 73% to as low as 50% during the quarter, achieved through a combination of

individual stock shorts, index shorts and holding cash. This defensive positioning made a strong positive contribution to our performance.

The best-performing sectors in Europe over the last three months were Energy, Consumer Staples, Utilities and

Pharmaceuticals. The Fund has very little exposure to these sectors, which significantly hurt our relative performance.

Within the Fund, our best-performing stock was Sardinian oil refi ner Saras (+99%). Saras is benefiting from skyrocketing refi ning margins. The elevated margins reflect an underlying erosion of supply conditions, including economic sanctions on Russia, lower refining activity in China, refinery closures in many markets, and extended supply chains as traders

struggle to redirect products with limited shipping capacity.

Saras’ position as a coastal refinery in the middle of the Mediterranean with the ability to process a broad array of crudes bestows it with considerable flexibility over both inputs and outputs. This leaves it well-placed to benefit under such conditions.

Performance Commentary - June 30, 2022

The Fund (C Class) returned 2.5% for the quarter, well ahead of the market’s 7.9% decline.¹

The key factor driving markets was the decision by the US Federal Reserve (Fed) to sharply increase interest rates from 0.5% to 1.75% over the course of the quarter in response to the accelerating rate of inflation. This resulted in a signifi cant setback for the popular growth stocks that have led the bull market over the last three years. Notably, the US market was the weakest of the developed markets over the period (-17% in local currency terms), reflecting its heavy weighting to such companies. Asia (-6%), particularly China (+5%), was the notable outperformer for the quarter.²

Our short positions were the strongest contributor to the Fund’s performance, adding 7% to returns. On the long side, many of our Chinese investments provided a positive return, a good outcome given market circumstances. Online travel agent Trip.com (+19% over the quarter), parcel delivery giant ZTO Express (+10%) and property developer China

Overseas Land & Investment (+6%) were key contributors to performance. Contributors outside of China included energy companies Saras (+99%) and Suncor Energy (+11%), global insurance player Beazley (+19%) and Japanese bathroom fixtures manufacturer Lixil (+11%).

Detractors from performance included Allfunds (European fund platform, -30%) and St. James’s Place (UK wealth management, -24%). Both businesses have revenue streams based on assets under management, and as such, falling stock markets reduce short-term earnings. MinbeaMitsumi

(industrial and electronic components, -14%) and Microchip Technology (semiconductors, -23%) saw share price declines due to concerns around slowing global growth prospects.

Performance Commentary - March 31, 2022

The Fund (C Class) returned -7.7% for the quarter, marginally ahead of the market’s -8.4% return. The performance within the Fund and markets differed dramatically over the course of the quarter. In the period prior to Russia’s invasion of Ukraine, the Fund returned 2.3% while the market fell -8.6%. This period was marked by rising interest rate expectations as the global economy continued its post-pandemic recovery.

During these initial weeks of the quarter, expensive growth stocks performed poorly with the Fund benefiting from short positions in these types of companies. Post the invasion, stocks that were poised to benefit from the economic recovery, such as cyclicals, travel stocks and European banks, experienced significant price falls, as did Chinese companies, reflecting concerns about geopolitical risk and the struggling Chinese economy as it faced a new wave of COVID-19 infections. Investors once again favoured the growth names, with the growth-heavy US Nasdaq 100 Index finishing up 10% over this period. During the final weeks of the quarter, the Fund ceded its strong absolute and relative performance of the earlier period to finish slightly ahead of the market.

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