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Platinum Unhedged Fund

Discussion in 'Managed Funds & Index Funds' started by Simon Hampel, 26th Jul, 2007.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    With all the negativity towards Platinums funds (other than Platinum Asia) - especially the hedging issues they seem to have with the Platinum International fund ... I thought I might have a closer look at the new Platinum Unhedged fund which opened to the public a couple of months back (March 2007 I think).

    Normally I wouldn't consider such a new fund without any track record - but I was browsing through the Platinum website and noticed that the unit price history for the fund was a lot longer than I expected !! On closer inspection it appears that this fund has actually been trading for well over 2 years now - it started back at the end of January 2005 !!!

    Anyway - I decided to run it through my system and build a chart for it ... it has performed better than I expected (for an international fund), and certainly far better than the Platinum International fund has in the past 12 months / 2 years.

    I've attached charts for both below.

    FY returns for the two funds:

    Platinum Unhedged vs Platinum International
    2005/06: 42.08% vs 25.46%
    2006/07: 13.08% vs 5.57%

    Quarter-by-quarter returns:

    Platinum Unhedged vs Platinum International
    2005Q2: -4.11% vs -2.69%
    2005Q3: 13.79% vs 11.27%
    2005Q4: 14.10% vs 10.75%
    2006Q1: 14.52% vs 8.11%
    2006Q2: -3.70% vs -5.26%
    2006Q3: 3.77% vs 1.77%
    2006Q4: 2.02% vs -0.57%
    2007Q1: 0.72% vs 0.65%
    2007Q2: 6.46% vs 3.19%

    To better understand the differences between the two funds - I suggest you look at the quarterly reports ... in particular, the March report has a real example of the differences in strategy:

    http://www.platinum.com.au/images/pufqtr_0307.pdf
    http://www.platinum.com.au/images/pufqtr_0607.pdf

    Personally I think they are a little over-exposed to the US and Japan, but I'm certainly no expert :D ... at least they currently have some exposure (2%) to the Australian market, which I think is something the Platinum International fund lacks (I'm not sure whether they have a non-Australia mandate).

    ... anyway just thought I'd post these interesting findings. I've certainly added the fund to my watchlist - although it's not quite good enough to make my shortlist yet ... although it would currently rank 4th in my shortlist of funds and shows a buy signal - although I won't consider it yet (Navra is still easily outperforming it due to the strong Australian market).
     

    Attached Files:

  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
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    Location:
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    According to INFOCHOICE | Investment | Margin Lending | Compare ... PLA0006AU is currently offered an LVR by BT, LevEq and Macq ... all 70%

    I just checked St.George - they are now offering 60% LVR

    Interestingly, LevEq are now offering 75% on Platinum International ... they rarely go to 75% (unlike St.George who offer 75% on a lot of funds). LevEq have also recently increased their LVR on Platinum Asia to 70%, up from 65%.
     
  3. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
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    Location:
    Melbourne, VIC
    Thanks for highlighting this fund! I have seen it there, but never looked at it also due to it limited performance figures!
     
  4. Glebe

    Glebe Well-Known Member

    Joined:
    15th Aug, 2005
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    Location:
    Sydney, NSW
    Sim,

    If you don't mind performing some analysis on this fund that'd be appreciated...

    :D
     
  5. Simon

    Simon Well-Known Member

    Joined:
    17th Sep, 2005
    Posts:
    520
    Location:
    Newcastle
    When are we going to get the patented Sim BUY/SELL signals SMS'd out to us????

    :D :D
     
  6. voigtstr

    voigtstr Well-Known Member

    Joined:
    24th Jan, 2007
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    Location:
    Hobart
    go sim!

    I'd be happy to sign something saying the buy sell signall was general information only and did not constitute financial advice :)