Platinum International Brands Fund
Platinum Investment Management Limited is an Australian based fund manager, which specialises in investing in international equities. Platinum currently manages around A$25 billion.
The Platinum International Brands Fund's investment objective is to provide capital growth over the long-term by investing in companies around the world with well-recognised consumer brand names.
Successful brand management allows a company to earn superior profits from what otherwise might be a commodity. This process entails the creation of an emotional bond between the consumer and the product/product provider, which allows the latter to charge a premium price. As such, successful brand owners have a tendency to achieve superior growth and profitability (than purveyors of commodities).
The concept behind the Fund is that the process of globalisation, which involves the removal of impediments to ownership, international trade and promotion, will see the emergence of “mega-brands”. Companies with these strong positions are likely to be able to augment the growth in their relatively mature but stable home markets by tapping faster growth in emerging markets, which are experiencing rising living standards. Alternatively, powerful regional brands can expect to enjoy strong growth and profitability and may even be taken over by global operators on account of the regional brand's local dominance.
The Portfolio will ideally consist of 40 to 80 securities that Platinum believes to be undervalued by the market. Cash may be held when undervalued securities cannot be found. Platinum may short sell securities that it considers overvalued.
As of 31 August, 2015 the Fund had A$1.2 billion under management and a return of 13.0% compound p.a. since inception in 2000 (in local currency). This compares with a return of 1.8% compound p.a. for the Fund's benchmark index (the MSCI All Country World Net Index in A$).
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