Platinum Asset Management is banking on technology and healthcare stocks, alongside a bullish outlook on South Korea, to improve performance after its largest equities funds have underperformed the market for much of the last decade. Platinum’s $3.5 billion International Fund has returned 4.3 per cent this year, compared to the MSCI All Country World Index’s 7.3 per cent increase. Over one year, the fund returned 3.8 per cent versus the benchmark’s 17.5 per cent. Over the past decade, the fund’s 6.4 per cent compound-per-annum return falls well below the benchmark’s 11.5 per cent performance. Platinum, founded in 1994, is an Australian fund manager investing in global equities. The company is known for delivering compounded returns and making big market calls.
More recently, strong rallies in key technology, communications and healthcare stocks helped the fund return 3.8 per cent in July, outperforming the MSCI index’s 3.2 per cent gain. Holdings in the technology space were significant contributors, including Taiwan Semiconductor Manufacturing and Google parent Alphabet. A new investment in Rogers Communications, a Canadian communications company, and positions in AstraZeneca, Johnson & Johnson, IQVIA Holdings, UBS and Korea’s Shinhan Financial, also aided the positive returns.
Platinum’s $1.6 billion Asia Fund has also trailed the market this year, with a 12.3 per cent return compared to the MSCI benchmark’s 12.9 per cent. The Asia fund is up 25.2 per cent over the one-year, beating the index’s 21.7 per cent but is down over three and five years. The fund noted South Korea as a key overweight in the portfolio. Portfolio manager Cameron Robertson said the fund visited Samsung and SK hynix to check on new chip technologies, adding that South Korea’s mix of heavy industry, advanced technology and cultural exports positioned it well amid the rivalry between the US and China.
