Platinum International Fund ETF Quoted Managed Hedge Fund · ASX:PIXX
Platinum International Fund ETF Quoted Managed Hedge Fund — Platinum Asset Management — H1 2025 Earnings Presentation
33 slides from Platinum International Fund ETF Quoted Managed Hedge Fund's earnings presentation, Feb 25, 2025
Slide 1: 2024/2025 Half-Year Financial Results – Analyst Briefing
25 February 2025 The Manager ASX Market Announcements ASX Limited Sydney NSW 2000 By e-Lodgement Platinum Asset Management Limited (ASX: PTM) 2024/2025 Half-Year Financial Results – Analyst Briefing PTM encloses for release to the market the presentation deck for the analyst briefing on the PTM 2024
Slide 2: Platinum Asset Management Limited Analyst Briefing
Platinum Asset Management Limited Analyst Briefing Published on 25 February 2025 for briefing on 26 February 2025 Platinum Asset Management Limited ABN 13 050 064 287
Slide 3: Key Platinum Highlights – H1 2025
Key Platinum Highlights – H12025 ■ Cessation of discussions allows for exclusive focus on turnaround ■ Financials, while challenged by outflows, still show good expense control and healthy operating margins (43%) ■ Outflows moderating across the platform particularly ex-Platinum’s flagship Internati
Slide 4: Financial Performance
Financial Performance 3
Slide 5: Financial Summary
Financial Summary FY Half-year ended 31 December 2024 (A$M) 31 DEC 24 31 DEC 23 % VAR. ■ Fee revenues down largely in line with Average FUM (A$b) 12.0 16.2 (26)% lower FUM Management fees 69.4 92.4 (25)% ■ Adjusted expenses meaningfully Performance fees 0.0 0.0 n/a reduced despite inflationary and T
Slide 6: Revenue Analysis
Revenue Analysis FY Half-year ended 31 December 2024 DEC 24 H DEC 23 H $ VAR. ■ Retail outflows increase includes some Net retail outflows (A$m) (1,674) (813) (861) one-offs following Regal Partners Ltd Net institutional outflows (A$m) (821) (940) 119 NBIO but mostly reflective of challenged Average
Slide 7: Expenses
Expenses FY Half-year ended 31 December 2024 (A$M) DEC 24 H DEC 23 H % VAR. Staff costs 15.6 16.9 (7.7%) ■ December 2024 half costs reduced 18% Variable remuneration, incl. share-based payments expense 10.0 14.3 (30.1%) versus December 2023 half and 25% Fund administration costs 1.8 3.2 (43.8%) vers
Slide 8: Expenses – Turnaround Costs
Expenses – Turnaround Costs Expense reduction delivery ahead of schedule Progress v plan Cumulative savings Cumulative turnaround costs ■ 136% of FY24 target delivered ■ 31% relate to staff reduction ■ 47% relate to staff reduction and key measures staff retention measures ■ On track for 100% of FY2
Slide 9: Strong Balance Sheet and Seed Investment Portfolio
Strong Balance Sheet and Seed Investment Portfolio As at 31 December 2024 Net Assets* (A$m) Dividends (cps) Interim Final Special 317 325 199 199 20 7 4 6 7 1.5 Dec 24 Jun 24 Dec 23 FY Jun 25 FY Jun 24 FY Jun 23 Cash & Term Deposits (A$m) Seed Investments** (A$m) 250 209 118 152 64 52 Dec 24 Jun 24
Slide 10: Update on Turnaround and Strategy
Update on Turnaround and Strategy 9
Slide 11: Summary of Turnaround
Summary of Turnaround February 2025 Previously announced actions 3 YEAR GOAL TO: Stability 1. Improve business (profit and flows) 2. Improve investment performance Reset 3. Drive new flows Increase value for shareholders Growth 10 Source: Platinum.
Slide 12: Progress to Date
Progress to Date February 2025 Previously announced actions CORE ACTIVITIES: RESET AND GROW Positive results to date 1. Improve investment performance 1. Margin holding at 43%; expense reduction ahead of plan 2. Resize cost base for scale of business 2. Performance improvement across fund 3. Simplif
Slide 13: Investment Performance Improvement 2023-2024
Investment Performance Improvement 2023-2024 CY 2024 CY H2 2024 RELATIVE RETURN CY H1 2024 RELATIVE RETURN CY H2 2023 RELATIVE RETURN ABSOLUTE FUND RETURN TO MSCI INDEX TO CASH +5% TO MSCI INDEX TO CASH +5% TO MSCI INDEX TO CASH +5% Platinum International Fund 7.8 -11.3 -2.0 -8.6 0.5 -4.9 -4.8 Plati
Slide 14: Redemption Rate Beginning to Slow
Redemption Rate Beginning to Slow Six-month gross average outflows Six-month gross average outflows $mn – Total FUM $mn – all funds ex Platinum International Fund 600 450 $556mn $397mn 400 500 $444mn 350 400 -20% 300 SLOW $251mn 250 300 DOWN -37% 200 SLOW 200 150 DOWN 100 100 50 0 0 CY 1H 24 CY 2H 2
Slide 15: Taking Decisive Action
Taking Decisive Action Key FY H2 initiatives Revitalise flagship Platinum International Fund – Performance in fund continues to lag on absolute and relative basis Continue strong expense management – Have delivered on previous expense commitments, but further actions to be taken as required to size
Slide 16: Actions to Revitalise Platinum International Fund (PIF)
Actions to Revitalise Platinum International Fund (PIF) Consistent ■ Retain valuation focus and benchmark agnostic style ■ Retain bottom-up, high conviction approach seeking mispriced stocks in all corners philosophy of the world using strong fundamental research ■ Seek to provide long-term capital
Slide 17: Background on New PIF Leadership
Background on New PIF Leadership Ted Alexander: 17 years of experience in the investment industry having worked as a Portfolio Manager of global long-short equities Track record of performance Summary of employment history Global (Long Only) 14 months at BML and 4 years at Orca Gross Performance – 1
Slide 18: New Launches – Arrow Trust Strategy
New Launches – Arrow Trust Strategy Overview of Arrow Trust strategy launch Arrow Trust strategy performance Annualised net performance % to 31 January 2025 ■ Managed internally since 2020 by 1 year p.a. 2 year p.a. 3 year p.a. Since inception p.a. PM Sava Mihic + 2 quant analysts, 12.5% 10.3% 7.7%
Slide 19: Existing Product Opportunity – Platinum Asia Fund
Existing Product Opportunity – Platinum Asia Fund Platinum Asia Fund Performance summary as at 31 January 2025 (net of fees and costs) ■ An active long/short Asia ex Japan 1 Year 5 YEARS 10 YEARS SINCE INCEPTION equities portfolio incepted 4 March 2003 (%) (% P.A.) (% P.A.) (% P.A.) Platinum Asia Fu
Slide 20: Platinum Partner Series Progress
Platinum Partner Series Progress 31 March 2025 – launch of GW&K Global Small Cap offering Strategy overview Investment manager GW&K profile ■ Diversified portfolio of global small cap ■ Boston based firm founded in 1974 stocks – long only ■ Affiliate of AMG since 2008 ■ Active, bottom-up strategy se
Slide 21: Strong Capital Management, Room to Invest in Growth Opportunities
Strong Capital Management, Room to Invest in Growth Opportunities Balance sheet optimisation ■ Fully franked special dividend of 20 Retained earnings ($m) cents per share paid during the half 149 -23 ■ Run-rate operating return on equity -112 circa 18%* ■ Future dividend capacity largely limited to
Slide 22: Expense Control Actions
Expense Control Actions Half Year Expenses ■ Half-year adjusted expenses down 25% on Jun 23H 52.4 ■ On track to meet cost reduction target 48.1 of $25m 25% 43.4 ■ Expense reductions accelerated since 39.5 AGM; FTE headcount now 92* versus 114 in Sep 24, a 20% reduction ■ Product rationalisation larg
Slide 23: Questions
Questions 22
Slide 24: Thank you for joining our webinar
Thank you for joining our webinar 23
Slide 25: Appendices
Appendices 24
Slide 26: Appendix 1: Detailed Statutory Results
Appendix 1: Detailed Statutory Results Half-year ended 31 December 2024 (A$M) DEC 24 H DEC 23 H VAR. (%) Management fees 69.4 92.4 -24.9% Performance fees 0.0 0.0 0% Interest income 5.7 4.2 35.7% Net gains/(losses) on seed investments, FX and other income 1.5 3.2 -53.1% Total Revenue 76.6 99.8 -23.2
Slide 27: Appendix 2: Performance Fees
Appendix 2: Performance Fees CARRY PERFORMANCE FUM $M PERFORMANCE PARTICIPATION FORWARD FEE LAST FUNDS (DEC 24) FEE PERIOD TO BENCHMARK RATE % AT DEC 24* PAID** Retail Funds Platinum International Fund 26 30 Jun & 31 Dec MSCI AC World Net Index in A$ 15% -67.2% 31 Dec 17 & LICs: Platinum Asia ex-Jap
Slide 28: Appendix 3: Segment Analysis
Appendix 3: Segment Analysis Funds Management Investment and other (A$M) DEC 24 H DEC 23 H VAR. % (A$M) DEC 24 H DEC 23 H VAR. % Fee Revenue 69.4 92.4 (24.9%) Fee Revenue – – – Other Revenue 3.1 1.6 Large Other Revenue 4.1 5.8 (29.3%) Total Revenue 72.5 94.0 (22.9%) Total Revenue 4.1 5.8 (29.3%) Exp
Slide 29: Appendix 4A: Funds Under Management by Product
Appendix 4A: Funds Under Management by Product (A$m) CLOSING OPENING BALANCE INVESTMENT DISTRIBUTIONS BALANCE FUNDS (1 JUL 2024) NET FLOWS PERFORMANCE & OTHER2 (31 DEC 2024) % OF TOTAL Retail offerings Platinum Trust Funds and Platinum Global Fund (mFund)1 8,566 (1,538) 403 – 7,431 67% Quoted Manage
Slide 30: Appendix 4B: Funds Under Management by Strategy
Appendix 4B: Funds Under Management by Strategy (A$m) A broad array of global equity services OPENING BALANCE INVESTMENT DISTRIBUTIONS & CLOSING BALANCE INVESTMENT STRATEGY (1 JUL 2024) NET FLOWS PERFORMANCE OTHER* (31 DEC 2024) % OF TOTAL Global long short 8,573 (1,832) 195 (10) 6,926 63% Asia ex-J
Slide 31: Appendix 5: Share-based Payment Expense
Appendix 5: Share-based Payment Expense Five year future estimated amortisation profile1 ($AM) HY 2025 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Deferred Remuneration Plan2 2021 annual grant 0.8 1.5 2022 annual grant 0.8 1.5 1.6 2023 annual grant 0.7 1.3 1.5 1.7 2024 annual grant 1.3 2.6 2.1 1.6 1.1 2
Slide 32: Appendix 6: Investment Performance to 31 December 2024
Appendix 6: Investment Performance to 31 December 2024 PERFORMANCE OF PLATINUM TRUST FUNDS A$ AT 31 DECEMBER 2024 1 YEAR P.A. 3 YEAR P.A. 5 YEAR P.A. 10 YEAR P.A. FUM (A$B) International Fund - Absolute Return 7.8% 5.0% 5.5% 7.3% 4.4 (PMs: AC, CS) - Relative Return - 21.7% - 6.2% - 7.4% - 5.0% Asia
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by Platinum Asset Management Limited ABN 13 050 064 287 (“PTM”). References in this presentation to “Platinum” are to Platinum Investment Management Limited ABN 25 063 565 006, AFSL 221935, unless otherwise expressly stated. While the information in thi
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