A Strong Brand and a Track Record Built Over Two Decades Underpin Our Positive View on Platinum

A strong brand, a track record of investment outperformance, a prudent management team, a sound balance sheet, and a high dividend payout make Platinum Asset Management an attractive long-term investment, particularly against a backdrop of growing superannuation assets in Australia and increasing allocation to international equities. Population growth, increased pension age, and increases to compulsory superannuation rates will all contribute to substantially expanding the pool of Australian superannuation assets during the next 10-15 years. Trading at a 25% discount to our AUD 8.50 fair value estimate, Platinum is our preferred exposure among the ASX-listed asset managers we cover. While we acknowledge that there are several risks, including fund underperformance, loss of key personnel, and pressure on fees, we believe Platinum is well positioned to meet these challenges, and that it looks attractive on a fiscal 2017 price/earnings ratio of 14.5 times and a fully franked dividend yield of 6%.