Platinum International Fund ETF Quoted Managed Hedge Fund · ASX:PIXX
Platinum International Fund ETF Quoted Managed Hedge Fund — Platinum Investment Management — Investor Presentation (September 2024)
39 slides from Platinum International Fund ETF Quoted Managed Hedge Fund's investor presentation, September 2024
Slide 1: 2024 Annual Adviser Roadshow Presentation
2024 Annual Adviser Roadshow Presentation Platinum Investment Management Limited ABN 25 063 565 006 AFSL 221935
Slide 2: Agenda for today's presentation
Agenda for today’s presentation Business update from Jeff Peters, Managing Director and CEO Performance review and investment opportunities Audience Q&A Please join us for networking drinks and further discussion after Q&A 2
Slide 3: First Principles: What was our proposition to you?
First Principles: What was our proposition to you? 1. We had a way of making money in markets that was repeatable. 2. We knew that if we suffered large losses in markets, that you might not have time to earn it back. We sought to cushion the effect of large downturns. 3. We invest with zero referenc
Slide 4: Why we believe we can make money in markets
Why we believe we can make money in markets Price We acknowledge that price is a key driver of returns. matters Avoid the We are more likely to find mispricing in areas out of the spotlight. crowd Focus on Stock prices are heavily influenced by cognitive biases, creating mispricing. emotion 4 Source
Slide 5: Capitalising on behavioural biases
Capitalising on behavioural biases 5 Source: Platinum
Slide 6: The importance of downside protection
The importance of downside protection Designed to be there for clients when they need support the most Platinum International Fund MSCI AC World Net Index (A$) 6% 3% -12% -11% -16% -15% -18% -23% -41% -50% Dot Com Bubble Global Financial Crisis US Debt Crisis Covid Jan 22 Tech Sell-off (Peak Nov-00,
Slide 7: Performance through an absolute and relative lens
Performance through an absolute and relative lens Platinum International Fund Performance As at 31 August 2024, net of fees Since 6 months 1 Year 3 years 5 years 10 years inception (%) (%) (% p.a.) (% p.a.) (% p.a.) (% p.a.) Platinum International Fund 0.3 0.5 3.4 5.8 7.6 11.1 MSCI ACWI Equal Weight
Slide 8: What is 'the market': The MSCI All Country World Index
What is ‘the market’: The MSCI All Country World Index By Country By Sector Utilities: 3% Real Estate: 2% Materials: 4% Other: 22% Energy: 4% Consumer Staples: 6% IT and France: Communication Consumer 3% Canada: USA: Discretionary: Services: 32% 3% 10% UK: 3% 65% Japan: 5% Industrials: 11% Financial
Slide 9: 5 year average long position of the International Fund
5 year average long position of the International Fund Average of month-end long exposures for the 5 years to 31 July 2024 By Country By By Sector Sector Cash: 12% Cash: 12% Consumer Staples: 1% Real Estate: 3% IT and USA: 22% Energy: 4% Communication Services: 19% Health Care: 6% Other: 26% Consume
Slide 10: The magnitude of US outperformance has been large
The magnitude of US outperformance has been large 220 MSCI USA 200 Index Total Return (Indexed to 100 at Index 180 1/8/2019) 160 MSCI AC World 140 Ex-USA Index 120 100 80 Aug-2019 Aug-2020 Aug-2021 Aug-2022 Aug-2023 Aug-2024 10 Source: FactSet Research Systems. Last data point is 28 August 2024. Pas
Slide 11: Returns concentrated in seven 'magnificent' companies
Returns concentrated in seven ‘magnificent’ companies Magnificent Seven vs S&P 500 vs S&P 500 ex Magnificent Seven 500 450 Performance of stock composites (Indexed to 400 Magnificent Seven stocks 350 100 as at 1 January 2018) 300 250 200 S&P 500 S&P 500 150 excluding the Magnificent 100 Seven Stocks
Slide 12: Our view of the market landscape
Our view of the market landscape Platinum Investment Management Limited ABN 25 063 565 006 AFSL 221935
Slide 13: US & International Markets Have Moved in Cycles
US & International Markets Have Moved in Cycles US Equity vs. Non-US Equity 3-year annualised monthly rolling returns 30% US Outperforms : 51% of the time, average duration of 4 years US Outperforms for US Equity vs. Non-US Equity 3-year ann. monthly rolling returns 13 years! 20% 10% 0% -10% -20% -3
Slide 14: From 2011-2013 we had significant exposure to the US
From 2011-2013 we had significant exposure to the US Platinum International Fund – Historic USA Long Exposure 40% 35% 30% Portfolio Long Exposure 25% 20% 15% 10% 5% 0% 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 14 Source: Platinum
Slide 15: There was no 'good news' story around the US in 2012
There was no ‘good news’ story around the US in 2012 2.5 The state of the US economy and sentiment: Number of New Housing Starts (millions) Economy struggling in the aftermath of the GFC 2.0 Unemployment was 8% New home starts fall more than 70% Housing market in crisis: new home starts -70% 1
Slide 16: But the 'beautiful' companies traded on low valuations
But the ‘beautiful’ companies traded on low valuations 2012 Valuation Stock return from that point Company (Price / Earnings, Next 12 Months) to today? Microsoft 9x up 14x Apple 11 x up 10x Moody’s 12 x up 12x Mastercard 16 x up 11x 5x D.R. Horton up 11x 1.0 x Book Value 16 Source: FactSet Research
Slide 17: How are those same businesses valued today?
How are those same businesses valued today? Today’s Valuation Company (Price / Earnings, Next 12 Months) Microsoft 30 x Apple 31 x Moody’s 39 x Mastercard 30 x D.R. Horton 12 x 2.5 x Book Value 17 Source: FactSet Research Systems. Valuations are as at 27 August 2024.
Slide 18: 1. Are there any markets that look similar to the US in 2012?
1. Are there any markets that look similar to the US in 2012? Platinum Investment Management Limited ABN 25 063 565 006 AFSL 221935
Slide 19: In an economic sense, China looks similar to the US in 2012
In an economic sense, China looks similar to the US in 2012 China New Property Sales 2,500 The state of the Chinese economy and sentiment: New Property Sales (RMB m per sqm) The economy is struggling after years 2,000 New home of zero covid lockdowns. sales fall 1,500 -68% Housing market in cris
Slide 20: The quality companies in China have massively derated
The quality companies in China have massively derated Today’s Valuation Dividend Yield + Company (Price / Earnings, Next 12 Months) Buyback Yield Tencent 15 x 5% ZTO Express 11 x 5% JD.com 7x 11% AIA Group 12 x 7% 5x China Resources Land 7% 0.5 x Book Value 20 Source: FactSet Research Systems. Valua
Slide 21: Positive news can result in an outsized market reaction
Positive news can result in an outsized market reaction 17,000 Hang Seng China Enterprises Index level (RMB) 16,000 +21% gain when 15,000 property stimulus was announced 14,000 13,000 12,000 11,000 Jan-2024 Feb-2024 Mar-2024 Apr-2024 May-2024 Jun-2024 Jul-2024 Aug-2024 21 Source: FactSet Research Sy
Slide 22: 2. Are there any signs of change in the US?
2. Are there any signs of change in the US? Platinum Investment Management Limited ABN 25 063 565 006 AFSL 221935
Slide 23: Temp workers are usually the first to go in a downturn
Temp workers are usually the first to go in a downturn US Temporary Help Services – Number of Employees 3,300 3,100 -0.5m fewer 2,900 temporary workers ‘000s of people 2,700 employed 2,500 November 2013 2,300 2,100 1,900 Jun-2013 Jun-2015 Jun-2017 Jun-2019 Jun-2021 Jun-2023 23 Source: Federal Reserv
Slide 24: The US unemployment rate is hooking up
The US unemployment rate is hooking up The shaded areas are US economic recessions 10% 8% Unemployment rate 6% 4% 2% 0% 1948 1953 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 2013 2018 2023 24 Source: Federal Reserve Economic Data: https://fred.stlouisfed.org. Shaded areas depict a US rece
Slide 25: We are seeing a change of tone around the fiscal position
We are seeing a change of tone around the fiscal position US Fiscal Deficit as a % of GDP 2019 2020 2021 2022 2023 2024 On track 5% 15% 12% 5% 6% for ~6% 25 Source: https://www.nbcnews.com/politics/2024-election/harris-proposes-raising-corporate-tax-rate-28-rolling-back-trump-law-rcna167208 and http
Slide 26: The Investment Opportunities
The Investment Opportunities Platinum Investment Management Limited ABN 25 063 565 006 AFSL 221935
Slide 27: Global Investment Themes
Global Investment Themes Ageing Population Digitisation Life Cloud Sciences Computing Consumerism Autonomous Systems Artificial Intelligence Interest (AI) Rates Geopolitics 27 Source: https://pixabay.com/illustrations/globe-earth-world-transparency-1348777/
Slide 28: Global Investment Themes: Digitisation and Cloud Computing
Global Investment Themes Digitisation and Cloud Computing Ageing Digitisation Population Exposed stocks have performed exceptionally well for over a decade Life Cloud Sciences Computing Many portfolios have become concentrated in this narrow area Consumerism Autonomous This is a bet that the f
Slide 29: The changing of the guard - Top companies by decade
The changing of the guard - Top 10 companies by decade 1990: 2010: 2020: 2000: Japan will take over Commodity Super US Tech will take over TMT Bubble the world Cycle the world NTT Microsoft Exxon Mobil Microsoft Bank of Tokyo-Mitsubishi* General Electric PetroChina Apple Industrial Bank of Japan NTT
Slide 30: Global Investment Themes: Autonomous Systems
Global Investment Themes Ageing Digitisation Waymo One driverless taxi – Phoenix, Arizona Population Life Cloud Sciences Computing Consumerism Autonomous Systems Artificial Intelligence Interest (AI) Rates Geopolitics 30 Source: https://pixabay.com/illustrations/globe-earth-world-transparency-134877
Slide 31: Global Investment Themes: Policy Interest Rates
Global Investment Themes 6 USA: Ageing 5.0% Digitisation 5 UK: Population 5.0% Life Policy Interest Rates (%) 4 Australia: Cloud 4.35% Sciences Computing Eurozone: 3 3.9% Consumerism Autonomous 2 Systems 1 Artificial Intelligence Interest Japan: 0 0.25% (AI) Rates Geopolitics -1 2012 2014 2016 2018
Slide 32: We have a number of interest rate sensitive investments
We have a number of interest rate sensitive investments TransUnion: The owner of valuable, high-quality, consumer data Broad array of customers Exciting AI applications are coming, data will be more valuable 70% market share in India Earnings will rebound as interest rates fall We bought
Slide 33: Global Investment Themes
Global Investment Themes Ageing Digitisation Population Life Cloud Sciences Computing Consumerism Autonomous Systems Artificial Intelligence Interest Rates (AI) Geopolitics 33 Source: https://pixabay.com/illustrations/globe-earth-world-transparency-1348777/ ; https://www.ft.com/content/d77395b6-8561
Slide 34: Since 2018, Uranium prices quadrupled from $20 to $80
Since 2018, Uranium prices quadrupled from $20 to $80 150 Uranium price per pound ($US) 100 50 Uranium spot price Long-term uranium price 0 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 34 Source: Cameco
Slide 35: Global Investment Themes: Nuclear renaissance
Global Investment Themes Nuclear renaissance: Ageing Digitisation Population 440 existing reactors Life Cloud +60 under construction Sciences Computing +110 have financing & permitting Consumerism Autonomous Systems Artificial Intelligence Interest (AI) Rates Geopolitics 35 Source: https://pix
Slide 36: Global Investment Themes
Global Investment Themes Ageing Digitisation Population Life Cloud Sciences Computing Consumerism Autonomous Systems Artificial Interest Intelligence Rates (AI) Geopolitics 36 Source: https://pixabay.com/illustrations/globe-earth-world-transparency-1348777/
Slide 37: The winners from big technological shifts move in waves
The winners from big technological shifts move in waves 1990s 2000s 2010 - Today 37 Source: Company websites
Slide 38: We are investing in the hardware 'wave'
We are investing in the hardware ‘wave’ It is these hardware providers that are enabling the training and running of the AI models These investments all share a common thread: 1) AI is a meaningful new growth driver 2) They have very strong base businesses outside of AI that are growing, and underpi
Slide 39: Disclaimer
Disclaimer This presentation has been prepared by Platinum Investment Management Limited ABN 25 063 565 006, AFSL 221935, trading as Platinum Asset Management (“Platinum”). Platinum is the responsible entity and issuer of units in the Platinum Trust® Funds (the "Funds", each a “Fund”). The Platinum
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