Slide 1: Platinum Asset Management 2022 Full-Year Financial Results – Analyst Presentation
25 August 2022 The Manager ASX Market Announcements Australian Securities Exchange Limited Sydney NSW 2000 Platinum Asset Management Limited (PTM) – 2022 Full-Year Financial Results – Analyst Presentation PTM encloses for release to the market the 2022 full-year financial results analyst presentatio
Slide 2: Analyst Briefing
Platinum Asset Management Limited Analyst Briefing August 2022 Platinum Asset Management Limited ABN 13 050 064 287
Slide 3: Presented by
Analyst Briefing Presented by: Andrew Clifford Andrew Stannard Co-Founder Financial Director 2
Slide 4: Financial summary
Financial summary June 2022 Net profit after tax excluding largely Average FuM Management fee unrealised losses on down 8.6% on revenue down seed investments down June 2021 7% 11% $21.4b Total expenses up 5% Expenses excluding Largely unrealised Final dividend of share-based payment Net profit after
Slide 5: Equity markets, where are we now?
Equity markets, where are we now? Fundamentally Tighter monetary What has worked for different monetary conditions represent a the last decade, environment to the significant headwind to unlikely to work for last 10 + years asset prices/ the years ahead valuations This information is general in natu
Slide 6: Virtually all returns have been enjoyed by one market
Virtually all returns have been enjoyed by one market Until this year, the US equity market had vastly outperformed the rest of the world 450 400 350 300 250 200 150 100 MSCI USA - Total Return Index 50 MSCI AC World ex USA - Total Return Index 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 7: Historic US equity bubble deflating
Historic US equity bubble deflating Stage 1 – Rising Stage 2 – Earnings interest rates disappoint Opportunities are elsewhere! This information is general in nature and does not take into account your specific needs or circumstances. You should consider your own financial position, objectives and re
Slide 8: Opportunities are elsewhere!
Opportunities are elsewhere! • Assets priced in a different monetary environment • e.g. China • Businesses hurt by low rates • e.g. European Banks • Business yet to fully recover from pandemic • e.g. Travel, Autos • Broadly value has a long way to run • Still opportunities to short This information
Slide 9: Global Value versus Global Growth – just getting going?
Global Value versus Global Growth – just getting going? Only just above the lows of all time 1.6 1.4 1.2 Ratio, x 1.0 0.8 0.6 0.4 Index data sourced from Bloomberg. Data to 15 July 2022. Ratio of MSCI World Value Index (USD) over MSCI World Growth Index (USD), simple ratio 8 shown.
Slide 10: Investment Performance to June 2022
Investment Performance to 30 June 2022 International, Asia, Japan and European Funds outperformed their benchmarks in 2022 SINCE PERFORMANCE OF PLATINUM TRUST FUNDS 1 YEAR 5 YEAR 10 YEAR INCEPTION FUM AS AT 30 JUNE 2022 P.A. P.A. P.A. P.A. (A$B) International Fund - Absolute Return - 5.9% 5.6% 11.2%
Slide 11: Platinum International Fund
Platinum International Fund 12 MONTHS 12 MONTHS 12 MONTHS 12 MONTHS JUN-22 PIF JUN-22 MSCI JUN-21 PIF JUN-21 MSCI Returns of long portfolio INVESTMENT RETURNS for the first 6 months Long Portfolio (14.8%) (8.0%) 36.2% 27.7% negatively affected by Downside Protection* 10.2% - (8.7%) - contrarian view
Slide 12: Platinum's consistent investment process
Platinum’s consistent investment process Designed to be there for clients when they need support the most PERFORMANCE DURING PREVIOUS MAJOR MARKET DRAWDOWNS MARKET EVENTS IN LAST 2 YEARS MSCI AC World Net Index (A$) Platinum International Fund 22% 8% 3% -6% -12% -16% -18% -15% -19% -23% -41% -50% Do
Slide 13: Platinum International Fund…we've been here before
Platinum International Fund…we’ve been here before Investment performance: bull & bear market view since inception to 30 June 2022 FUND PERFORMANCE VS MSCI AC WORLD NET INDEX ($A), Platinum International Fund CUMULATIVE AND BY MARKET TREND SINCE INCEPTION. MSCI AC World Net index ($A) Source: Platin
Slide 14: Australia/NZ Business Development
Australia/NZ Business Development New carbon transition thematic strategy – to be launched shortly as a dual access managed fund structure (subject to regulatory approval) enabling ease of access via the ASX as well as Unit Registry. ESG – implicit inclusion of ESG factors in our investment analysis
Slide 15: Offshore Business Development
Offshore Business Development Offshore FUM $696m as at 30 June 2022 (includes UCITS, Optima and Cayman vehicles). Americas Focus: USA and Canada Recommenced trips (6 trips Nov Client Focus: Institutional, 21 - Jun 22) to both the US and Endowments, Family Office Funds: 2 Cayman $34m, Europe followin
Slide 16: A broad array of global equity services
A broad array of global equity services FUNDS UNDER MANAGEMENT BY STRATEGY: YEAR TO 30 JUNE 2022, A$MN CLOSING OPENING BALANCE INVESTMENT DISTRIBUTIONS BALANCE % OF INVESTMENT STRATEGY (1 JULY 2021) NET FLOWS PERFORMANCE & OTHER* (30 JUNE 2022) TOTAL Global long short 14,647 (1,437) (785) (644) 11,7
Slide 17: Looking ahead
Looking ahead The business remains resilient and well placed for future growth… Strong position in Australian retail market. Highly differentiated products. Desire for higher international equity exposure continues to increase in Australia. Downside Offshore initiatives provide a platform for growth
Slide 18: Flows, Average FUM and Operating Results
Flows, Average FUM and Operating Results FULL YEAR HALF YEAR Jun-22 Jun-21 Jun-22 Dec-21 NET FLOWS (A$M) 3% -929 -1,239 -33% - - 2,168 2,225 23.4 -9% -10% 22.5 AVERAGE FUM 21.4 (A$B) 20.2 Jun-22 Jun-21 Jun-22 Dec-21 -11% 133.6 REVENUE 252.7 -6% 269.2 119.1 (A$M) Jun-22 Jun-21 Jun-22 Dec-21 118.2 -11
Slide 19: Flows
Flows SEMI-ANNUAL GROSS INFLOWS (A$M) ANNUAL GROSS INFLOWS (A$M) Gross Inflows 313 Retail Funds Gross inflows for the 12 months to 30 June 238 2022 were $1.2b. Institutional 144 185 Strong first half blunted by weakest six 46 3,391 months since GFC as advisors reacted to 2,483 28 81 63 equity ma
Slide 20: Revenue Analysis
Revenue Analysis As at 30 June 2022 JUN-22 JUN-21 VAR. JUN-22 H DEC-21 H VAR. COMMENT ($M) ($M) ($M) ($M) Average FuM ($B)* 21.4 23.4 (2.0) 20.2 22.5 (2.3) Average Fee**(bps) 115 114 1 114 117 (3) Reflects changes in FUM mix Management fees 246.0 265.2 (19.2) 114.9 131.1 (16.2) Average FuM and FuM m
Slide 21: Seed investment portfolio
Seed investment portfolio Losses on seed investments during FY22 are largely unrealised, effectively a reversal of unrealised gains during FY21. Over the past two years, Platinum’s seed investment portfolio has generated net cash inflows of $35m* and the net fair value of the portfolio has increased
Slide 22: Expenses
Expenses Expense Analysis: as at 30 June 2022 JUN-22 JUN-21 VAR. JUN-22 H DEC-21 H VAR. COMMENT ($M) ($M) ($M) ($M) ($M) ($M) Staff costs higher than June 21 due primarily to Staff costs 28.9 28.5 0.4 15.1 13.8 1.3 salary increases and recruitment costs Variable remuneration, incl. share- Cash compe
Slide 23: Strong Balance Sheet
Strong Balance Sheet AS AT 30 JUNE 2022 324 341 342 NET ASSETS* (A$M) Jun-22 Dec-21 Jun-21 177 192 193 CASH & TERM DEPOSITS (A$M) Jun-22 Dec-21 Jun-21 144 151 156 SEED INVESTMENTS** (A$M) Jun-22 Dec-21 Jun-21 12 11 7 Dividends 10 12 13 (cps) FY Jun-22 FY Jun-21 FY Jun-20 Interim Final Source: Platin
Slide 24: Questions
Questions 23
Slide 25: Appendix
—__.. Appendix
Slide 26: Appendix 1: Detailed operating results
Appendix 1: Detailed operating results ($M) JUN-22 JUN-21 % CHANGE JUN-22 H DEC-21 H % CHANGE Management fees 246.0 265.2 -7.2% 114.9 131.1 -12.4% Performance fees 6.7 4.0 67.5% 4.2 2.5 68.0% Interest income 0.5 0.5 0.0% 0.3 0.2 50.0% Net gains/(losses) on seed investments, FX and other income (20.4
Slide 27: Appendix 2: Performance fees
Appendix 2: Performance fees FUNDS FUM $M PERFORMANCE BENCHMARK PARTICIPATION CARRYFORWARD (JUN-22) FEE PERIOD TO RATE % AT JUN-22* Retail Platinum International Fund 20 30 Jun & 31 Dec MSCI AC World Net Index in A$ 15% -3.4% Funds & LICs Platinum Asia ex-Japan Fund 9 30 Jun & 31 Dec MSCI AC Asia ex
Slide 28: Appendix 3: Underlying profit
Appendix 3: Underlying profit JUN-22 JUN-21 VAR. JUN-22 H DEC-21 H VAR. COMMENT ($M) ($M) ($M) ($M) Statutory NPAT 101 163 (62) 41 60 (19) Net (gain)/loss on financial Primarily unrealised losses on seed assets at fair value through profit 6 (13) 19 4 2 2 investments in Cayman funds and loss Net sha
Slide 29: Appendix 4: Segment analysis
Appendix 4: Segment analysis JUN-22 JUN-21 % JUN-22 JUN-21 % FUNDS MANAGEMENT INVESTMENT AND OTHER ($M) ($M) VAR ($M) ($M) VAR Fee Revenue 252.7 269.2 -6.1% Fee Revenue - - -- Other Revenue 0.1 0.3 -0.1% Other Revenue (20.0) 46.9 Large Total Revenue 252.8 269.5 -6.2% Total Revenue (20.0) 46.9 Large
Slide 30: Appendix 5: Funds under management by product
Appendix 5: Funds under management by product Year to 30 June 2022, A$mn FUNDS OPENING NET FLOWS INVESTMENT DISTRIBUTIONS & CLOSING BALANCE % OF BALANCE PERFORMANCE OTHER 3 (30 JUNE 2022) TOTAL (1 JUL 2021) Retail offerings Platinum Trust Funds (excluding funds fed from PIXX and PAXX) 14,548 (1,390)
Slide 31: Appendix 6: Share-based payment expense
Appendix 6: Share-based payment expense Five year future estimated amortisation profile1 A$mn $M 2022 2023 2024 2025 2026 Deferred Remuneration Plan2 2018 annual grant 2.2 2019 annual grant 1.3 1.4 2020 annual grant 1.3 1.5 1.7 2021 annual grant 1.4 1.6 1.8 2.0 2022 annual grant 1.5 1.5 1.6 1.9 2.0
Slide 32: 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