Quarterly Update June 2016 – Platinum International Fund

pgfqtr_0616

0:05miles one of platinums investment specialist will provide a June quarterly
0:09overview of the Platinum international fund
0:11Douglas can we start with an overview of markets as it appeared the confidence
0:15was increasing right up until the final days of the quarter when we received the
0:20results of the brexit vote
0:21yeah Justin I’d say that’s probably exaggerating a little bit i think what
0:25happened was it was a very strong snap back after the growth scary that we saw
0:28in February not really sort of happened during marching by the time we got into
0:32our the the quarter
0:33it was really a very very gradual increase in confidence but I think
0:37breaks it definitely is a shearing and markets
0:39I think we lost about six seven percent and markets very quickly and and that
0:43was a surprise
0:44it was a surprise to us it was a surprise to financial markets more
0:47broadly
0:48but having said that it was quite explainable what happened with breaks it
0:52was there was a response if you like a reaction to do a couple of things
0:55migration that was a big issue in the UK as a response to the pressures of
1:00globalization on high
1:02Western wages and if you couple that with the general sense of the EU isn’t
1:07doing its job for Britain if you like then I guess with the benefit of
1:10hindsight and it’s easy to explain why the vault did what it did but
1:13encouraging layers we moved into July we’ve already seen markets retrace a lot
1:17of the losses that we saw as a response to break that other than specifically
1:22the british pound which was a an obvious victim of such a vault
1:26looking ahead what do we believe that the potential impacts on markets and how
1:32are you positioning ourselves
1:33it’s just a describe the portfolio today has been quite cautiously positioned
1:38with soft still in the mid to high 70s in terms of our market exposure we were
1:42higher through most of this earlier part of the bull market 2012 – 15
1:46we in the currency markets we don’t have particularly large positions other than
1:50protection on the Chinese currency on a little bit of Ozzy but we expect will
1:54probably have a chance to remove that if it if it does trade much higher than it
1:58is today but really the key thing is trying to capture some of the the
2:02undervaluation of the growth story in Asia
2:04so we’ve got a lot of the portfolio still in the asia-pacific region the
2:07European banks i mentioned on the back of breaks at being interesting and then
2:11in the u.s. our portfolio is dominated by technology and some of the main
2:14leaders they are companies like Google
2:16and people are very important to our portfolio
2:19what changes have the portfolio managers can you listen and andrew Clifford made
2:24during the quarter
2:26yeah i think just in their support three things to highlight the first of these
2:29was continuing to add to our exposure to the oil industry we on today and I in
2:35Italy and impacts in Japan particularly for itself assets in the Icarus project
2:39off the course of the show so we continue to add to that area
2:43it looks like i was very quickly moved from being in massive oversupply 22
2:48quite tight actually the supply demand dynamics
2:50the other thing was we reintroduced johnson Johnson to the portfolio this is
2:53a high quality company one of the very few US companies with a triple a rating
2:58in fact one of only two trades on a discount to the market and we think
3:01there’s some positive things happening in both the consumer and the medical
3:04technology businesses is the company
3:06we won before and one which we very much like and and respect and the third thing
3:10was really in response to breaks it
3:12you know big sell-off in European banks
3:15we on Lloyd’s we want a stone and made me do banker in Italy and a very very
3:20sharp reaction give us an opportunity to to invest further in companies that we
3:24we know very well in which we like and and we thought you know given the
3:27opportunity was prudent to add to these positions
3:30Thank You Douglas for the full written report from the funds portfolio managers
3:36karen elson Andrew quit

 

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