Platinum changes product fees
Platinum Asset Management (PTM) expects to launch two exchange traded managed funds (ETMFs), subject to regulatory approval, in August and announced changes to its product fees to each of its eight Platinum Trust Funds (PT) and its Platinum Global Fund (PGF).
Under the new fee options for the PT funds, investors would be offered the choice between a performance fee option, comprising a management fee of 1.1 per cent per annum plus a relative outperformance fee of 15 per cent, and a standard fee option, comprising a management fee of 1.35 per cent per annum.
Under the first scenario, the new performance fee option would be initially available to direct investors and would be in line with the fee structure for Platinum’s two listed investment companies (LICs), Platinum Capital limited (PMC) and Platinum Asia Investments Limited (PAI).
The second option would represent a reduction from the currently disclosed management costs rate of 1.5 per cent per annum, according to the company, and would benefit both new and existing investors.
Also, under the new fee option for PGF, the currently disclosed management costs (1.5 per cent pa) would be reduced to 1.35 per cent per annum.
PTM said that the new performance fee options had been decided as a result of the review of the company’s channel, distribution and pricing strategy.
The company also said that the changes would have no direct impact on its 2017 revenues or profits, however there may be a reduction in PTM’s 2018 revenue as a result of the lower fees for PT Funds and PGF if these were not offset by new fees on the new products to be launched or other net inflows.
Additionally, PTM said it planned to launch two new ETMFs which would help investors access Platinum’s international and Asian equity strategies via the Australian Securities Exchange (ASX).
Both funds would be expected to be exchange traded versions of Platinum’s existing actively managed funds and would be structured as feeder funds into the existing unlisted Platinum International Fund and Platinum Asia Fund.
Therefore, both funds would offer the same portfolio composition, portfolio managers and investment strategy as the underlying funds, with the fee structure consisting of a management fee of 1.1 per cent per annum plus a relative outperformance fee of 15 per cent.
According to the company, this would be in line with the fee structure for Platinum’s two LICs, PMC and PAI.
Platinum’s chief executive, Kerr Neilson, said that the new changes would benefit clients in terms of both channel choice and price options.
“While to the benefit of clients, the use of the performance option is likely to reward shareholders in the long-term,” he said.
Recommended for you
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
Three solutions providers – Betashares, Franklin Templeton and Russell Investments – have all launched new ETF products, including one range which uses gearing to help build wealth.
Platinum Asset Management chief executive, Jeff Peters, has shared a progress update on its newly announced turnaround strategy.
There is a role for advisers using inflation-linked bonds in portfolios, according to AXA IM, as the possibility of higher inflation necessitating another US rate hike is not out of consideration.
