Next Investors logo grey

Dividend Portfolio: Platinum Asset Management (ASX: PTM)


Published 25-JUL-2017 00:00 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Overview: Platinum Asset Management Ltd ("Platinum Asset", "PTM", "the Company") is an Australian financial services firm focused on funds management. Platinum Asset is the holding company of Platinum Investment Management Ltd, which manages 14 funds and two listed investment companies ("LICs"). As of June 2017, Platinum had funds under management ("FUM") totalling $22.7 billion.

Catalysts: Platinum Asset has gone through a period of underperformance due to fund outflows and being the underweight U.S., but management has taken actions to respond to structural industry changes. Historically Platinum Asset has outperformed in challenging conditions and bear markets, providing investors the opportunity to hedge against the market whilst maintaining long exposure to equities. PTM is on track to distribute a fully franked dividend-yielding approximately 6% p.a.

Hurdles: The funds management industry experiences structural changes as investors shift towards Exchange Traded Funds ("ETFs") and indices and ongoing indexation could further erode funds under management, which have declined over the past two years. There is no guarantee that new pricing structures will retain clients and attract fund inflows. The performance of the Company’s funds is subject to general market volatility.

Investment View: Platinum Asset offers profitable exposure to asset management trends and global equity markets. We are attracted to management’s track record, recent product changes, and Platinum’s hedge fund nature. Ongoing fund outflows and market volatility are principal risks. Following two years of stock price depreciation and fund outflows, Platinum Asset may be at an inflection point following recent management actions. The Company has a strong long-term track record of value creation and we are attracted to the fully franked 6% dividend. We initiate coverage with a ‘buy’ recommendation.


General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.