Andrew Clifford. chief investment officer Platinum Asset Management
Equity markets have performed strongly in the past years, with the US being the strongest performer and valuations at historic highs. Platinum asks – is this going to keep going? The Platinum International Fund seeks out assets that are mispriced through buying undervalued shares across the globe to find the best opportunities for investors over the long term. With a flexibility to move to cash and the ability to short positions, it takes full advantage of the Platinum investment process.
The Platinum International Fund Money Masters course with Andrew Clifford will give you insights into:
Andrew Clifford /
Andrew joined Platinum Asset Management as a founding member in 1994 in the capacity of director and Deputy Chief Investment Officer. Previously he was a Vice President of Bankers Trust Australia covering Asian equities and managing the BT Select Market Trust - Pacific Basin Fund. In May 2013, Andrew was appointed Chief Investment Officer. Andrew was manager for the Platinum Asia Fund from inception of the Fund in 2003 until December 2014 and is co-manager of the Platinum International Fund.
A contrarian investment philosophy informs the Platinum International Fund strategy, with a preference to look at out of favour sectors or regions across the world, for companies at an attractive price.01.
A willingness to be different from the crowd and seek out the best opportunities away from benchmark requirements sets the fund apart. Platinum has been in operation for over 23 years and the experienced team has been investing in international markets such as China for over 15 years.02.
Aims and objectives
The fund aims to earn good absolute returns for investors over the long term by investing in undervalued companies from around the world. When markets are high we are happy to be uninvested, or we may sell shares and hold cash or take insurance via short selling by managing market exposures. Indeed, in combination with other asset classes and other international and Australian equity funds, we provide diversification via a very different risk and different return profile and this can come together very well in investors’ portfolios. Few manage currency exposures and may manage close to a benchmark or be fully invested. We therefore offer a very important differentiator in their portfolio.03.
While the fund has three headline portfolio managers, diverse investment ideas are fed in from Platinum’s other investment analysts/portfolio managers covering various industries and regions, the dealing team and the quantitative team – ensuring breadth of perspectives and robust debate of potential investments.04.
Unique aspects and rules of the fund
The fund utilises the Platinum investment approach and the willingness to look at ideas that may be out of favour currently. The fund is able to move to cash if there are not attractive investment opportunities and shares/indices can also be shorted.05.
Buy and sell disciplines
In deciding to buy or sell a share, there is a story that can unfold over a long period of time. Andrew discusses how Platinum typically accumulates a position slowly and how their investment thesis can play out over a number of years.06.
While the fund operates in the universe of international shares, it is not managed to a benchmark in the sense of reflecting weightings in an index such as the MSCI World Index. In terms of performance however, it is fair to measure against the performance of global shares and a benchmark/index can be used to do this.07.
Risks and returns
Platinum views risk as the price paid for an asset and whether the price paid is too high. Another risk can be where investors are crowding into assets, and Platinum believes that staying away from the crowd can be risk averse if executed properly.08.
Fees and access
There are multiple paths for access to the fund and two fee options; a flat fee or a performance fee option.09.
The ideal investor
Over five years is an ideal minimum time horizon, and this fund could complement other international portfolios and a range of other asset classes in an investor’s overall portfolio. The Platinum International Fund can play a core role in diversification and managing risk for investors10.
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