PAI - Platinum Asia Investments

[Dona Ferentes]

within Asia, such a broad range of economies, often Japan is set aside as it is seen as developed. There are a range of metrics to make investment decisions on: whether earnings P/E are the only or relevant ones may not be that relevant if the region is seen as growth focused.
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In India, returns have exceeded those of most global indices in the past few years. Its current P/E is high and around 22X, moderately above the historic average.

But the MSCI Emerging market index, of which India is a constituent, is trading at 11 times.

The case for Indian equities is built off its favourable demographic circumstances, significant domestic investment and consumption growth and having a wide range of companies.

A Valuation approach would suggest a switch from India to others in emerging markets.

Japan has been another outperformer recently. For many years, its valuation was at the bottom end of developed markets, yet attracted few enthusiastic investors. The corporate sector is not seen to optimise return on capital, and has been sitting on unproductive investments and cash.

Now the Japan stock exchange will publish a list of companies that fail to illustrate how they will improve governance and returns. Perhaps there is the prospect of substantially better earnings in coming years.

 

[Dona Ferentes]

The PAI Board has sought to create shareholder value through various capital management initiatives, including the issue of bonus options in April 2023 and the operation of an on-market “10/12 limit” share buy-back, which the Board has today extended for a further 12 month period.
Despite these actions, PAI has continued to trade at persistent share price discount for some time.

Accordingly, the PAI Board, with the co-operation of Platinum Investment Management Limited, announces that it will be undertaking a formal strategic review of the options available for PAI to maximise value for PAI shareholders as a whole, with the primary objective of reducing the
share price discount to pre-tax NTA.

 

[divs4ever]

The PAI Board has sought to create shareholder value through various capital management initiatives, including the issue of bonus options in April 2023 and the operation of an on-market “10/12 limit” share buy-back, which the Board has today extended for a further 12 month period.
Despite these actions, PAI has continued to trade at persistent share price discount for some time.

Accordingly, the PAI Board, with the co-operation of Platinum Investment Management Limited, announces that it will be undertaking a formal strategic review of the options available for PAI to maximise value for PAI shareholders as a whole, with the primary objective of reducing the
share price discount to pre-tax NTA.

yep , that is the current fashion

seems these managements ( not just Platinum ) have no faith in loyal share-holders ( like me ) averaging down in the big dips

oh well more cash to park elsewhere i value div. return on investment higher than NTA , (which it rarely trades at anyway )

i hold PAI and PTM

 

[qldfrog]

yep , that is the current fashion

seems these managements ( not just Platinum ) have no faith in loyal share-holders ( like me ) averaging down in the big dips

oh well more cash to park elsewhere i value div. return on investment higher than NTA , (which it rarely trades at anyway )

i hold PAI and PTM

I have to check this one for my os exposure..especially if trading below npa...

 

[divs4ever]

bought into it for exposure to India , but unfortunately it seems to be tilting towards other Asian nations ( and unfortunately not much Vietnam which i see as a secondary sweet spot )

my average share price is just above 87 cents

but be careful the fund management are under pressure ( as are several rivals ) they may 'reinvent ' this as an ETF or managed fund ( or even delist it )

 

[Dona Ferentes]

bought into it for exposure to India , but unfortunately it seems to be tilting towards other Asian nations

I don't know why you keep repeating this nonsense. Having Asia in its title is a bit of a givaway. PAI holds 7 per cent exposure to India, but essentially is:

Platinum Asia Fund​

A diversified portfolio of Asian (ex-Japan) companies across industry sectors, the fund offers investors exposure to undervalued businesses benefiting from the region’s dynamic growth and transformation.

 

[Dona Ferentes]

I have to check this one for my os exposure..especially if trading below npa...

there's a conundrum in managed funds of this type, as expressed in the quote below.

Conversely, there are other areas of the markets that are being ignored because they don’t provide the necessary popularity and/or liquidity that ETFs require.

Value stocks are being left for dead because they don’t have the popularity, momentum, and often liquidity to make it into ETFs. The same goes for small caps and microcaps.

Which is a bit of a vicious circle.

 

[Dona Ferentes]

another underperforming LIC trying to reinvent
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was trading around 91c, rose to 96c on news; latest NTA was approx. $1.01

PAI update on formal strategic review
On 26 April 2024, the Board announced that it was conducting a formal strategic review of the options available to it to maximise value for PAI shareholders as a whole, with the primary objective of reducing the share price discount to pre-tax net tangible asset backing per share.

Following the announcement on 26 April 2024, the Board appointed an independent corporate adviser to assist the Board with the assessment of a number of different strategic options that have subsequently been presented to it. The Board is pleased to advise that it has concluded its review and, subject to formal legal, tax and operational due diligence, the Board has agreed to pursue a scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) with the Platinum Asia Fund (Quoted Managed Hedge Fund) (ASX: PAXX).

PAXX is an open-ended managed fund whose units are quoted on the ASX AQUA market. If the scheme of arrangement is implemented, PAI shareholders will receive PAXX units in exchange for their PAI shares, with the number of PAXX units to be issued to each PAI shareholder calculated by reference to the relative NAV per unit of PAXX and post-tax net tangible asset backing per share of PAI after adjusting for associated transaction costs and impact to PAXX unitholders. This will enable PAI shareholders to:
• continue to access Platinum Investment Management Limited’s Asia ex-Japan investment strategy via an ASX-quoted vehicle with the same investment objective as PAI; and
• hold units in PAXX that will trade close to their net asset value, meeting the Board’s objective of closing the share price discount.

The scheme of arrangement is subject to execution of a binding scheme implementation deed between PAI and Platinum as responsible entity of PAXX, as well as PAI shareholder and Court
approval.

 

[divs4ever]

another underperforming LIC trying to reinvent
.
was trading around 91c, rose to 96c on news; latest NTA was approx. $1.01

PAI update on formal strategic review
On 26 April 2024, the Board announced that it was conducting a formal strategic review of the options available to it to maximise value for PAI shareholders as a whole, with the primary objective of reducing the share price discount to pre-tax net tangible asset backing per share.

Following the announcement on 26 April 2024, the Board appointed an independent corporate adviser to assist the Board with the assessment of a number of different strategic options that have subsequently been presented to it. The Board is pleased to advise that it has concluded its review and, subject to formal legal, tax and operational due diligence, the Board has agreed to pursue a scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) with the Platinum Asia Fund (Quoted Managed Hedge Fund) (ASX: PAXX).

PAXX is an open-ended managed fund whose units are quoted on the ASX AQUA market. If the
scheme of arrangement is implemented, PAI shareholders will receive PAXX units in exchange for their PAI shares, with the number of PAXX units to be issued to each PAI shareholder calculated by reference to the relative NAV per unit of PAXX and post-tax net tangible asset backing per share of PAI after adjusting for associated transaction costs and impact to PAXX unitholders. This will enable PAI shareholders to:
• continue to access Platinum Investment Management Limited’s Asia ex-Japan investment strategy via an ASX-quoted vehicle with the same investment objective as PAI; and
• hold units in PAXX that will trade close to their net asset value, meeting the Board’s objective of
closing the share price discount.

The scheme of arrangement is subject to execution of a binding scheme implementation deed between PAI and Platinum as responsible entity of PAXX, as well as PAI shareholder and Court
approval.

i hope management give themselves all a nice bonus , because they have made a great achievement

they have convinced me to remove PAI from my top-up list , deleting the reason i was nibbling away at these at opportune moments

lets see how they go compared to proper ETFs ( where they hold no advantage now )

i hold PAI , PTM , ASIA , IIND and EAFZ
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[divs4ever]

since i had been nibbling from 90.5 cents to as low as 80 cents a share

i suppose the temptation is to exit the holding ... at say $1 a share ( and redeploy the cash elsewhere )

 

[Dona Ferentes]

now trading around $1.04, having a good run of late based on the closing NTA gap and also underlying holdings getting a boost, esp those that are China focused . NTA is $1.10.

And likely to disappear, as is PMC, by early 2025 .
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Platinum Asia Investments Limited is pleased to announce that it has entered into a scheme implementation deed with Platinum Investment Management Limited in its personal capacity, as responsible entity of Platinum Asia Fund (Quoted Managed Hedge Fund) (ASX: PAXX) and as responsible entity of Platinum Asia Fund to undertake a scheme of arrangement conditional upon shareholder and Court approvals.

PAXX is an existing actively managed ETF whose units are quoted on the ASX, that is a “feeder fund”, primarily investing into the Underlying Fund. Platinum manages the investment portfolios of the Company, the Fund and the Underlying Fund, employing the same Asian equity (ex-Japan) investment strategy. The Scheme Implementation Deed is the first formal step to give effect to the proposed Scheme.

The Scheme, if implemented, will have the following key implications:
1. the Company’s shareholders will exchange their ASX listed shares for units in the Fund at a ratio based on the Fund’s net asset value and the Company’s post tax net tangible assets (adjusted for all costs associated with the transaction) immediately prior to implementation;
2. the current investment management agreement between the Company and Platinum Investment Management Limited will terminate without Platinum claiming, or the Company having to pay, termination fees; and
3. the Company will become wholly owned by the Fund and will be delisted from the ASX.

Following implementation of the Scheme, the Company’s investment portfolio will betransferred to the Platinum Asia Fund and the Company will be wound up.