PAI - Platinum Asia Investments

[System]

Platinum Asia Investments Limited (PAI) has been established to provide investors with a convenient means of gaining exposure to the fast growing equities markets in the Asian Region (ex Japan) and to take advantage of the investment opportunities it presents.

The investment objective of the Company is to provide capital growth over the long-term through investing primarily in undervalued listed securities of companies in the Asian Region (ex Japan) across all sectors. In doing so, the Company aims to achieve net returns over a five year plus investment horizon that are in excess of the benchmark MSCI All Country Asia ex Japan Net Index.

It is anticipated that PAI will list on the ASX during September 2015.

http://www.platinumasia.com.au

 

[Klogg]

Interesting. This morning, options to buy PAI at $1.00 (expiring 17th May) were trading at 0.4cents ($0.004). Meanwhile, PAI opened at $1.00.
I picked up a modest position here on the open as a result.

Given the underlying NTA of this is $1.063 (pre-tax) per share, even if all options are taken up, this becomes $1.0315 per share.

On balance, this seems like a low cost bet with odds in my favour. I might end up regretting it, but it's a relatively small position.

 

[qldfrog]

Interesting. This morning, options to buy PAI at $1.00 (expiring 17th May) were trading at 0.4cents ($0.004). Meanwhile, PAI opened at $1.00.
I picked up a modest position here on the open as a result.

Given the underlying NTA of this is $1.063 (pre-tax) per share, even if all options are taken up, this becomes $1.0315 per share.

On balance, this seems like a low cost bet with odds in my favour. I might end up regretting it, but it's a relatively small position.

interesting: where do you trade your options on PAI, none was available on belldirect.You are using CFD?

 

[Klogg]

interesting: where do you trade your options on PAI, none was available on belldirect.You are using CFD?

Code: PAIO
Was just through CommSec

 

[Dona Ferentes]

The Quarterly review is out; for an Asian exposure, PAI seems to be doing OK
.... though, as a LIC, its trading at 96c with a latest NTA of $1.12

From our perspective, economic risks emanating from the spread of coronavirus and containment measures instituted were always going to significantly dampen economic activity. In contrast, market sentiment early in the quarter was somewhat complacent. We acted quickly and reduced our net exposure. By the end of February, PAI's net invested position was lowered to 55% (from 90% at the beginning of the year) by liquidating positions and putting in place a range of short positions on stock market indices to hedge against market declines.

Exposure to South Asian stocks was drastically reduced, particularly India, with the gross (long) invested position reduced from 11% to 4% over the quarter. The impact of the virus is expected to be greater in countries that lack the economic capacity or organisational ability to contain the spread and deal with the fallout.

China, Korea, Taiwan, Hong Kong and Singapore have shown an incredible ability to contain the spread of this virus within their respective countries. People’s lives have returned to various degrees of normalcy. While we reduced exposures to these regions early in the stock market panic, positions in these markets have since been reinstated at more attractive valuations.

 

[finicky]

Was getting interested by PAI after this thread but then saw it was invested 52% China - instant turn-off personally. Also invests ex Japan. As an aside, I don't understand how it is "taxed at source" but PAI can distribute available profits to shareholders in the form of dividends, usually fully-franked.

 

[So_Cynical]

Platinum is a smart active manager, arguably the premier managed exposure to international markets.

 

[Dona Ferentes]

The 2020 financial year can be broken down into three distinct investment performance periods, as follows:
 The eight month period from 1 July 2019 to 29 February 2020, during which the Company’s investment return of 8.3% compared favourably to the Index return of 7.8%.
 The month of March 2020, during which the Company’s investment return was negative 1.2%. There was a steep sell-off in markets, resulting in an Index return of negative 7.4%. Actions taken to protect the portfolio during a highly volatile period, including shorts on stock market indices and higher cash holdings, helped the Company’s investment performance.
 The three month period from 1 April 2020 to 30 June 2020, during which the Company’s investment return of 7.0% exceeded the Index return of 3.7%. The Company’s investment portfolio was well positioned for the market recovery during this period.

The Company declared a fully-franked final dividend of 3 cents per share, bringing the total dividends declared for the 2020 financial year to 5 cents per share. This represents a dividend yield of 4.95% based on the closing share price as at 30 June 2020

Platinum is a smart active manager, arguably the premier managed exposure to international markets.

and franking on international shares, un atout.

(Hold)

 

[Dona Ferentes]

Since PAI was begat from Platinum some 5 years ago, it has travelled a similar path to the mothership, PMC (in light blue). As a value investor trying to position itself on the Asian century, it hasn't really enjoyed the lift one would expect. In fact it has been marked down as investors look for the growth stories and IPOs. Furthermore, the underperformance as shown by the shareprice has come from trading below its NTA for most of the time. Hovvever, the last few months have seen a lift for PAI (dark blue) while the more international ((US and Europe-focused) PMC has struggled, and shown no sign of recovery since the Covid turn-down.

 

[Dona Ferentes]

" .... markets continued their strong run… particularly those companies with sensitive (cyclical) businesses. A broad range of commodities also experienced strong price moves over the same period. The commencement of these prices moves aligned with the US election and the announcement of successful COVID-19 vaccine trials. PAI’s holdings in semiconductors and related stocks performed well during the [last] quarter… The ongoing economic recovery in China helped our Chinese consumer related holdings… We expect to continue pivoting the portfolio toward more value and economically sensitive exposures, such as industrials and financials, with a view to the potential for a robust synchronous recovery globally....”

..... after providing for the 2021 fully-franked interim dividend of 4 cents per share, the Company had an ability to pay fully-franked dividends of up to 7.20 cents per share. The Board has a policy of dividend smoothing and endeavours to ensure that there are sufficient franking credits available to pay fully-franked dividends in the future.

NTA close to $1.50 a share, still trading under that , around $1.37

(HOLD a few)

 

[So_Cynical]

Two and a half year yield of 13c per share (FF), average share price over the same period of about $1.10 so average PA yield of about
5.2% net + 30% in franking credits. Been a good little earner then throw in the 15-20% capital growth and its been very nice.

 

[Dona Ferentes]

FY results : Summary

Platinum Asia Investment Limited delivered a strong investment return of 25.8% for the year ended 30 June 2021, as measured by its pre-tax net tangible asset backing per share. This was achieved during a difficult year as the markets reacted to the global pandemic. The Company’s net profit after tax was $75.9 million (2020: $38.6 million).

The Company declared a fully franked final dividend of 6 cents per share, bringing the total dividends declared for the 2021 financial year to 10 cents per share. This represents a dividend yield of 8.1% based on the closing share price as at 30 June 2021 or 7.3% based on the pretax net tangible asset backing per share at 30 June 2021.

Since inception (16 September 2015) to 30 June 2021, the Company’s annualised compound return (measured by the Company’s pre-tax NTA) was 12.3% per annum, compared with an annualised compound return of 12.2% per annum for the MSCI index for the same period.

The Platinum Investment Management investment manager recently commented that:

“At present, markets are pricing in a sharp deterioration in nominal growth globally, in our view. We think that nominal growth will be higher for longer than markets anticipate, which creates significant opportunities for investors in rapidly growing Asia.”

--------- I only hold a few PAI. They surprise me with the dividend strength, which I'll take anytime. But you do end up getting 'the market', which is fine as sensible exposure to Asia is difficult to find. PAI trades a bit below NTA, and has for quite a while.

 

[Dona Ferentes]

(Now trading around 90c)

The Board of Platinum Asia PAI is pleased to announce its approval of a pro-rata nonrenounceable issue of one (1) Bonus Option for every four (4) PAI shares held as of the Record Date.

Each Bonus Option is exercisable at an exercise price of $0.90 at any time prior to 5pm (Sydney time) on 28 March 2024 and gives the Bonus Option holder the right to acquire one ordinary share in the Company. Any capital raised through the exercise of the Bonus Options will be used to increase the size of the Company's portfolio and will be invested in line with its investment strategy and objectives.

An application will be made to ASX to have the Bonus Options quoted and tradeable on the ASX under the code “PAIO”.

No action is required by shareholders to receive their Bonus Options.

 

[divs4ever]

(Now trading around 90c)

The Board of Platinum Asia PAI is pleased to announce its approval of a pro-rata nonrenounceable issue of one (1) Bonus Option for every four (4) PAI shares held as of the Record Date.

Each Bonus Option is exercisable at an exercise price of $0.90 at any time prior to 5pm (Sydney time) on 28 March 2024 and gives the Bonus Option holder the right to acquire one ordinary share in the Company. Any capital raised through the exercise of the Bonus Options will be used to increase the size of the Company's portfolio and will be invested in line with its investment strategy and objectives.

An application will be made to ASX to have the Bonus Options quoted and tradeable on the ASX under the code “PAIO”.

No action is required by shareholders to receive their Bonus Options.

i hold PAI , now will i exercise those options , i guess that will depend on ( LIC ) portfolio directions ( in share price and the contents of the portfolio )

am mainly interested in this LIC for the India and S.E.Asia exposure

 

[Dona Ferentes]

One of the key takeouts from a recent Platinum conference was that, as value investors, the average PE for Indian companies was well into the 20's and the highest of any country in the Asian region. Not that they weren't selectively buying, but that there was better opportunity elsewhere.

"The fund will ideally consist of 50 to 100 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."

 

[divs4ever]

One of the key takeouts from a recent Platinum conference was that, as value investors, the average PE for Indian companies was well into the 20's and the highest of any country in the Asian region. Not that they weren't selectively buying, but that there was better opportunity elsewhere.

"The fund will ideally consist of 50 to 100 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."

i still hold , but am not rushing to add extra , currently

BTW that sentiment might change later on ( in the year/decade )

 

[So_Cynical]

i hold PAI , now will i exercise those options , i guess that will depend on ( LIC ) portfolio directions ( in share price and the contents of the portfolio )

If they are in the money then everyone is interested, they will be listed options so easy enough to sell if ITM.

 

[divs4ever]

If they are in the money then everyone is interested, they will be listed options so easy enough to sell if ITM.

i don't normally sell options ( either the parcel is too small , i like the offer , like a WAX offer back in 2014 where i exercised fairly early in the offer ) but have sold the odd offer on market

but where do i think Asian ( and PAI ) economy is going in the next half year , it might be cheaper to buy the shares directly on market ( in a dip )

i still think India is the mid-term growth story for me ( other South Asian nations are difficult to get exposure to )

MEMO to self .. i should recheck if i still want to be in the 'free-carried' ASIA ( ETF ) has been a nice ride but North Asia might become a war-zone in the near future ( bought @ $5.40 and $5.05 in 2018 and reduced @ $12.25 in January 2021 )

decisions, decisions

 

[Dona Ferentes]

trading at 84c, the latest NTA was closer to 99c and there's a 1 for 4 bonus entitlement at 90c that has 6 months to go.

Like many, this LIC isn't traveling the way they'd like.

PAI - Capital Management Initiatives - Update

This is an update to the announcement made by the Company on 25 October 2022 in relation to its capital management initiatives, specifically in relation to the Company’s buy-back policy.

At the time of that announcement, the Board was of the view that a share price discount to the Company’s pre-tax NTA of more than 20% represented a level where it may be in shareholders’ interests for the Company to buy-back shares under the ‘10/12 limit’ on-market share buy-back program.

Despite solid absolute investment performance for the year to 30 September 2023, the Company’s share price discount to pre-tax NTA has persisted over the last 18 months. Accordingly, the Board is no longer of the view that the 20% share price discount guide remains appropriate.

The Board thus reserves its right to enter the market to buy-back shares under the ‘10/12 limit’ share buy-back program where it considers that to do so would be in the best interests of shareholders as a whole with the Board’s primary objective being to provide liquidity to existing shareholders and accretion to continuing shareholders. The Board’s decision to implement the buy-back is subject to a range of factors including market volatility, balance sheet resources and liquidity of the shares. No target price has been set.

 

[divs4ever]

Like many, this LIC isn't traveling the way they'd like.

not my preferred direction , either

i was hoping it would gracefully slide lower so i could accumulate on the down-trend

Asia is still my choice of 'future growth potential' ( especially but not exclusively India )

and PAI was one of several avenues i was increasing exposure to Asia ( ex Japan ) with .



i would have rather they hoarded cash for any upcoming opportunities

but Platinum has other in-house concerns as well ( like several wealth-management businesses )

( i hold PTM and PAI )