Platinum Asset Management Limited

Kerr Neilson, Managing Director

Analyst Briefing

25 August 2017

1

June 2017 Year: Highlights

  • Bounce back in investment performance during the year.

  • Full year Jun-17 net out-flows strongly correlated to previous year's investment

    under-performance.

  • Distribution initiatives to better position the firm for future performance related growth

    • LICs. Total of $136m raised via PMC placement/share purchase plan and PAI option exercise.

    • New Quoted Managed Funds to be admitted to trading on ASX shortly. Marketing

      campaign underway.

    • UCITS fund flows continue to build. FUM now A$314m.

    • Exploring options to better service our European clients.

    • Distribution arrangements in the US also being reviewed.

  • Closing FuM flat year on year. Average FuM down 9%.

  • Profit After Tax of $186m was down 7%.

  • Final dividend of 15 cps.

  1. Source: Platinum, MSCI Inc.

    What we said this time last year…

    A highly differentiated portfolio…

    Performance relative to the MSCI ACWI(Year to Jun-16)

    Competitor International Equity Funds as at June 2016* 10%

    5%

    …reflects low potential of the US market.

    Cyclically Adjusted P/E Ratio: S&P 500**

    45

    40

    35

    0%

    -5%

    -10%

    -15%

    -20%

    30

    25

    20

    Platinum International 15 Fund (net exposure) 10

    = Competitor Fund 5

    0

    Current: 26x

    0% 20% 40% 60% 80%

    % of portfolio allocated to US equities

    The rest of the world now looks relatively cheap...

    1881 1896 1911 1926 1941 1956 1971 1986 2001 2016

    …which creates attractive buying

    opportunities.

    60%

    50%

    40%

    30%

    20%

    10%

    0%

    "Rest of the World" Price/Book discount compared to the US market

    Unattractive Opportunities

    Attractive Opportunities

    Composite of Portfolio Metrics***

    Many attractive investment opportunities are emerging

    2003 2005 2007 2009 2011 2013 2015

    * Source: Platinum. Competitor data obtained from fund or platform websites. Funds selected are actively managed Australian registered

    International equities funds with FuM >$300mn and a long international equities bias.

  2. ** Source: Yale, Schiller

*** Composite of Portfolio Metrics; Includes Profitability (RoC), Value (EV/CE, P/e, EBITDA/EV, Yield), Growth (sale, earnings, BV /share) and

Leverage (Debt/Book). Source: Platinum

Investment Performance

(to 30 June 2017)

Strong recovery in the last year. Long-term performance remains compelling. Broad based

performance across PMs indicative of a strong investment process and quality of research team.

Performance of major Platinum Trust Funds (June-17)

1 year

5 year

10 year

Since Inception

FuM (A$b)

International Fund - Absolute Return

(PM's: KN, AC, CS) - Relative Return

21.3%

+6.0%

17.1%

+0.0%

7.8%

+3.0%

12.7%

+6.2%

9.7

Asia Fund - Absolute Return

(PM: JL) - Relative Return

19.7%

-3.3%

16.0%

+1.6%

15.0%

+4.7%

15.0%

+4.7%

4.1

International Brands - Absolute Return (PM: JH) - Relative Return

27.7%

+12.4%

16.1%

+3.8%

9.9%

+5.1%

12.9%

+6.4%

0.8

Japan Fund - Absolute Return

(PM: SG) - Relative Return

24.0%

+8.3%

25.4%

+9.3%

10.8%

+8.6%

15.0%

+12.6%

0.6

European Fund - Absolute Return

(PM: ND) - Relative Return

28.5%

+11.0%

16.6%

+1.8%

7.6%

+6.2%

12.0%

+9.3%

0.5

Healthcare Fund - Absolute Return

(PM: BO - Relative Return

18.2%

+11.8%

20.4%

-1.2%

11.5%

+1.8%

9.5%

+0.8%

0.2

Unhedged Fund (long only) - Absolute Return (PM: CS) - Relative Return

31.7%

+16.4%

18.6%

+1.5%

9.0%

+4.2%

11.5%

+5.0%

0.2

Subtotal (A$b)

% of Total FuM

16.1

71%

Portfolio Managers: KN=Kerr Neilson, AC = Andrew Clifford, CS=Clay Smolinksi, JL= Joe Lai, JH=Jamie Halse, SG=Scott Gilchrist, ND= Nik Dvornak, BO = Bianca Ogden

4

Source: Platinum. Returns are annualised. Relative returns represent the returns of the nominated MSCI benchmark as stated in the Platinum Trust Funds' PDS No 11 dated 3 July 2017 for C Class, P Class and E Class. Past performance is not a reliable indicator of future performance.

Platinum Investment Management Limited published this content on 25 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 August 2017 23:17:07 UTC.

Original documenthttps://www.platinum.com.au/Documents/Shareholders/PTM_ASX_Releases/ptm_analyst_briefing_aug_2017.pdf

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