Why Platinum International has outperformed

13 April 2018
| By Nicholas Grove |
image
image
expand image

The Platinum International Fund, one of Australia’s most highly regarded international equities strategies, has outperformed its benchmark over the past year.

And given Australian self-managed super fund (SMSF) portfolios’ widely acknowledged under-allocation to international equities, the outperformance warrants closer examination.

As the chart below illustrates, the fund boasted a total return of nearly 21 per cent over the year compared to its benchmark MSCI All Country World Index’s gain of just over 13 per cent.

Comparing the largest underlying holdings of the strategy to its benchmark’s major constituents can go some way to explaining the outperformance.

As 31 March, 2018, the only large holding the Platinum strategy shared in common with its benchmark index was Google parent company Alphabet, with a 2.6 per cent weighting.

When comparing the top 10 holdings, it’s clear Platinum has made decent sized bets on Asian equities, with Samsung Electronics the number one holding with a 3 per cent weighting, followed closely by Pin An Insurance of China with 2.8 per cent of the portfolio.

Both stocks have gained 15.5 per cent and 13.4 per cent respectively over the past year.

The strategy carries a four-crown FE Crown Fund Rating and is available as a quoted managed fund on the Australian Securities Exchange under the ticker PIXX.

It pays distributions annually and its management costs are 1.10 per cent per annum of net asset value, plus 15 per cent of outperformance over the benchmark.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago