Platinum is pleased to announce the forthcoming launch of two innovative new products. Two new managed funds, Platinum International Fund (Quoted Managed Fund) (ASX code: PIXX) and Platinum Asia Fund (Quoted Managed Fund) (ASX code: PAXX), will shortly be quoted on the Australian Securities Exchange (ASX), and are expected to commence trading on or around 14 September 2017.
As the first ASX-quoted, actively managed feeder funds offered in Australia, this is an exciting new industry innovation for the ASX AQUA market. PIXX and PAXX have been structured as feeder funds which will feed into Platinum’s flagship unlisted managed funds, the $10 billion Platinum International Fund (PIF) and the $4 billion Platinum Asia Fund (PAF).
Ease of Access & Live Indicative NAV Pricing
The greatest attraction of PIXX and PAXX is their ease of access, obviating the need to fill out lengthy application forms which have traditionally been a drawback for unlisted managed funds. PIXX and PAXX will effectively enable investors with a broking account to access an actively managed, diversified portfolio of global companies by placing a single trade.
With these ASX-quoted managed funds, investors will also enjoy the additional benefit of knowing the indicative net asset value unit price at the time of placing a trade.
Australian investors, who have ridden their luck through a golden era, have one of the world’s most severe cases of home market bias. Their portfolios tend to be skewed towards combinations of bank equity, debt, hybrids and term deposits, all of which are correlated to the Australian economy and domestic housing market.
When Australians venture overseas, the US is usually their market of choice, but there is a risk that US assets may end up being the same bet. The US and Australia, along with the UK, all have significant current account deficits, which means that they are all potentially exposed to tougher economic conditions with a change in global capital flows and consumption patterns under way, led by China, South Korean and European nations that have large current account surpluses.
This rebalancing process is, however, creating investments opportunities. Platinum believes that many investors are yet to fully appreciate the prospects of growth for a more consumption-led Chinese economy or the pace of recovery and transformation in Europe. There are simply many interesting companies from around the world that Australian investors arguably should include in their portfolios.
And now they can do so with the click of a button by investing in PIXX and PAXX on the ASX.
By feeding into their underlying funds, PIXX and PAXX will give investors exposure to truly diversified portfolios of global and Asian equities respectively, exposure to companies such as Korean tech powerhouse Samsung Electronics and Chinese Internet giants Tencent and Alibaba.
Proven Track Record
With every new investment product, investors naturally feel some initial doubt. With PIXX and PAXX, however, their doubts can be eased by the fact that, not only is Platinum a well-respected asset manager with more than 23 years of history, PIF and PAF, the underlying unlisted vehicles that PIXX and PAXX will feed into, are both long-established funds with an enviable track record over the short, medium and long term.
PIF has returned 12.7% per annum since its inception in 1995, and PAF has returned 15.0% per annum since its inception in 2003*. Each has also provided high cash distributions over time, with PIF delivering 9.5% per annum since inception and PAF delivering 7.7%**. This is well in excess of the distributions provided by many competing global equity products.
What sets Platinum apart from many other fund managers is its genuinely contrarian, index-agnostic approach to investing. There is no shortage of choice for ETFs or other quasi-passive, index-hugging funds today. What is unique about PIXX and PAXX is that they offer investors truly differentiated, actively managed portfolios that are easily accessible through brokers.
Simply put, the need for diversification has never been greater for Australian investors, and now, with Platinum’s new ASX-quoted offerings, achieving it has never been easier.
Disclaimer: This information is general information only and not intended to be financial product advice. It has not been prepared taking into account your investment objectives, financial situation or needs, and should not be used as the basis for making investment, financial or other decisions. You should read the entire PDS for the funds and consider your particular investment objectives, financial situation and needs prior to making any decision to invest.
* Investment returns are annualised to 31 July 2017 and have been calculated using PIF and PAF’s daily unit prices (C Class Units) since inception (30 April 1995 for PIF, and 4 March 2003 for PAF). Returns represent the combined income and capital returns, are net of fees and costs (excluding the buy-sell spread), pre-tax and assume the reinvestment of distributions. PIF and PAF C Class Units do not have a performance fee component. The returns of PIXX and PAXX will vary from the returns of PIF and PAF C Class Units due to different fees, cash holdings and gains and losses on PIXX and PAXX’s market making activities. Investors should be aware that historical performance is not a reliable indicator of future performance.
** Annualised and calculated as at 30 June 2017 since inception.
Platinum is an Australia-based investment manager that focuses on one asset class – international shares, or, more simply put, we provide portfolios of listed companies from around the world.
As for MGE, are the days numbered for unlisted managed funds? Why would anyone complete a lengthy application when you can access the same product with a click of the mouse via your broking account...
What is that advantage of PIXX and PAXX in relation to PMC and PAI ?
Dean, this is indeed one of the key reasons for launching these products, which along with the mfund platform, acknowledge that the application form is a key barrier to many Australians having balanced portfolios and accessing the skill required to invest successfully overseas
Arie, the key advantage of PIXX and PAXX over the LIC’s (PMC and PAI) are their open ended structure which effectively provide entry/exit very close to NAV. Some would counter-argue that LIC’s offer the benefit of knowing ahead of 30 June the exact tax outcome that a trust can never provide with certainty. A trust must pay out income and realised capital gains, while a company declares a dividend, paid from retained earnings. With pooled vehicles, one has to weigh up preferences around the structure.
When will the two funds give dividend, and how often?