PMC - Platinum Capital

PMC’s constitution contains a sunset clause that must be tested every five years i.e. on the last business day of the calendar month following each fifth anniversary of the date of quotation of PMC’s shares. As PMC was listed on 29 June 1994, the next Assessment Date is 31 July 2024. The sunset clause states that if by the Assessment Date PMC’s share price is trading at an “average discount” of greater than 15% of PMC’s net asset value measured over the 12 calendar weeks preceding the Assessment Date, the PMC Board must call a general meeting of members within 90 days to vote on, amongst other things, all necessary resolutions to effect a voluntary winding up of PMC.

In light of the above, the PMC 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 PMC to maximise value for PMC shareholders as a whole, with the primary objective of reducing the share price discount to pre-tax NTA.

was trading around $1.40, now up to $1.46; latest NTA was approx. $1.53

another LIC serial underperformer

PMC 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 PMC 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 International Fund (Quoted Managed Hedge Fund) (ASX: PIXX).

PIXX is an open-ended managed fund whose units are quoted on the ASX AQUA market. If the scheme of arrangement is implemented, PMC shareholders will receive PIXX units in exchange for their PMC shares, with the number of PIXX units to be issued to each PMC shareholder calculated by reference to the relative NAV per unit of PIXX and post-tax net tangible asset backing per share of PMC after adjusting for associated transaction costs and impact to PIXX unitholders.

This will enable PMC shareholders to:
• continue to access Platinum Investment Management Limited’s global equity investment strategy via an ASX-quoted vehicle with the same investment objective as PMC; and
• hold units in PIXX 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 PMC and Platinum as responsible entity of PIXX, as well as PMC shareholder and Court approval.

We look forward to providing a further update by the end of September 2024.

Dona Ferentes said:

was trading around $1.40, now up to $1.46; latest NTA was approx. $1.53

another LIC serial underperformer

PMC 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 PMC 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 International Fund (Quoted Managed Hedge Fund) (ASX: PIXX).

PIXX is an open-ended managed fund whose units are quoted on the ASX AQUA market. If the scheme of arrangement is implemented, PMC shareholders will receive PIXX units in exchange for their PMC shares, with the number of PIXX units to be issued to each PMC shareholder calculated by reference to the relative NAV per unit of PIXX and post-tax net tangible asset backing per share of PMC after adjusting for associated transaction costs and impact to PIXX unitholders.

This will enable PMC shareholders to:
• continue to access Platinum Investment Management Limited’s global equity investment strategy via an ASX-quoted vehicle with the same investment objective as PMC; and
• hold units in PIXX 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 PMC and Platinum as responsible entity of PIXX, as well as PMC shareholder and Court approval.

We look forward to providing a further update by the end of September 2024.

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Interesting information , might do a spread sheet of NTA to shareprice on these type of LIC/fund type stocks . Definitely be some arbs on some of these

Half of the PMC spread corrected today is a thing

Chipp said:

Interesting information , might do a spread sheet of NTA to shareprice on these type of LIC/fund type stocks . Definitely be some arbs on some of these

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Magellan just announced similar. The fund managers are loath to let go of FUM fee streams.

Dona Ferentes said:

This will enable PMC shareholders to

Click to expand...

Dona Ferentes said:

The fund managers are loath to let go of FUM fee streams

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Oh well, those who continue to hold will go from paying 1.5% to 1.23% in managements fees. You could call it a saving. I wouldn't.

Why anyone would continue to hold when there are other and less expensive products now available? It was listed in 1994 and peaked around the early 2000's. There wasn't much choice on the ASX at that stage.

with a hurdle like this, definitely not an Olympic sport
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Outcome of Platinum Capital Limited sunset clause

As previously advised, the sunset clause states that if by the Assessment Date PMC’s share price is trading at an “average discount” of greater than 15% of PMC’s net asset value measured over the 12 calendar weeks preceding the Assessment Date, the PMC Board must call a general meeting of members within 90 days to vote on, amongst other things, all necessary resolutions to effect a voluntary winding up of PMC.

Following the conclusion of the Measurement Period, the PMC Board is pleased to advise that PMC’s share price traded at an “average discount” of 8.3% of PMC’s net asset value during the Measurement Period. As a result, the sunset clause has not been triggered.

PMC has closed the gap to an extent. currently $1.43 and a NTA of $1.52. ....getting there:

And likely to disappear, as is PAI, by early 2025

Platinum Capital Limited (PMC) 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 International Fund (Quoted
Managed Hedge Fund) (ASX: PIXX) and as responsible entity of Platinum International Fund to undertake a scheme of arrangement conditional upon shareholder and Court approvals.

PIXX 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 global equity 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. PMC 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 be transferred to the Platinum International Fund and the Company will be wound up.

The Company signed a scheme implementation deed with Platinum Asset Management on 01 October 2024. Since announcing the Scheme Implementation Deed, further work has been completed on the timetable taking into account various factors including the operation of the tax franking rules.
As a result of this work, the indicative timetable for the Scheme has been revised, as announced to the market yesterday. Under the revised timetable, the Scheme is expected to be implemented in late July 2025 and as a result, the Scheme Booklet is now expected to be provided to shareholders in May 2025. .
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happy in la-la land. keep those fees flowing. underperformance, meh.

Out of curiosity I had a glance at both PMC and PIXX. At least with PMC, holders obtained a somewhat steady dividend income - and that may have been one of the attractions. Not so with PIXX. Over the same period PIXX has been available, VGS has blitzed it in regard to price growth. And PIXX is a tiddler at < $300m.

Honestly, I fail to understand what reason there is to hold either PMC or PIXX but that's just me.

haha

PGF CONFIRMS NON-BINDING INDICATIVE PROPOSALS TO ACQUIRE PMC AND PAI

PM Capital Global Opportunities Fund Limited (ASX: PGF) notes recent media speculation and the announcements made by Platinum Capital Limited (ASX PMC) and Platinum Asia Investments Limited (ASX PAI).

PGF confirms that it has provided confidential, non-binding, indicative proposals to acquire 100% of PMC by way of scheme of arrangement and 100% of PAI by way of scheme of arrangement. As outlined below, the Proposals represent an opportunity for PMC and PAI shareholders to exchange their shares for PGF shares at material premiums to recent share prices and NTAs. The Proposals also provide an alternative cash option for PMC and PAI shareholders who do not wish to receive scrip consideration. PGF considers that the Proposals reflect compelling, superior alternatives to PMC’s proposed scheme of arrangement with Platinum International Fund (PIXX) and PAI’s proposed scheme of arrangement with Platinum Asia Fund (PAXX) and has been seeking to engage with the PMC and PAI Boards.

The PGF Board also believes that the Proposals will lead to a larger capital and shareholder base for PGF, which
is expected to provide PGF shareholders with greater secondary market liquidity.

Details of the PMC Proposal

Under the PMC Proposal, PMC shareholders can exchange PMC shares for PGF shares, with an exchange ratio set with reference to the pre-tax NTA of PGF and a 1.5% premium to the pre-tax NTA of PMC. The PMC Proposal also provides PMC shareholders the option to receive cash consideration at the post-tax NTA per share of PMC or a combination of PMC Scrip Consideration and PMC Cash Consideration.

PM Capital (as investment manager of PGF) has agreed to fund the premium to pre-tax NTA, PGF’s transaction
costs as well as PMC’s transaction costs (subject to PMC’s costs being agreed with an overall cap).

PGF expects that the PMC Proposal would result in a meaningful uplift in value received by PMC shareholders compared to the PIXX Proposal.
Illustratively, based on the most recently disclosed NTAs of PGF and PMC, under the PMC Proposal, PMC
shareholders would receive 0.685 new PGF shares for each PMC share they hold. This represents:
• an indicative value of $1.73 per PMC share; and
• a 20.7% premium to the latest closing price of PMC (compared with a 5.8% premium under the PIXX Proposal).

even now, with the news out

...
in terms of relationship to NTA,
$1.55 for PMC it is still under
$1.31 for PGF, it is still over.

I'd reckon to Platinum holders would be happy for the deal to go ahead, just to narrow the gap and be given liquidity opportunity

PMC is the listed equivalent of the unlisted International Fund

Platinum's new international funds boss shifts gears​

This is an interview between Firstlinks’ James Gruber and Ted Alexander, Portfolio Manager – Global Strategies at Platinum Asset Management. He recently took over running the Platinum International Fund.

James Gruber: There have been some changes in investment management at Platinum recently – can you outline those changes and your role?
Ted Alexander: I've been brought in to manage the Platinum International Fund (and Platinum’s global strategies), which is a huge honour because the fund has been going for 30 years, which is an immense record, and it's outperformed the market over that time.
Andrew Clifford and Clay Smolinski have recently stepped aside. My role is not about changing Platinum’s underlying approach to investing but more about enhancing the process.

JG: You have made some changes to the actual portfolio, though. Can you outline what they are?
TA: You have a process in place, do a deep dive on every stock, every holding in the portfolio. As Portfolio Manager, you've got to be 100% confident that you understand the stock, the investment, the idea, the thesis behind the investment, and that still stands.

When I came in, we got the whole global investment team to do a deep dive on every stock and looked at where we are now. We kept most of the stocks in the portfolio. We've rotated about a third of them out. Some of those because they'd made a profit, and it was time to sell others because my view on the philosophy of that particular investment was slightly different.
We've been making some changes, but broadly we've kept being buyers of China, buyers of Europe - prefer that to the US – and looking at picking stocks with huge upside potential.
If we're thinking of thematics, we've made a few changes. We brought in some more low volatility stocks. I'm talking about consumer staples, pharmaceuticals, even telecoms. We bought some in so if we do get those slightly rockier markets, you've got a bit of safer, lower volatility stocks coming through. We’ve also changed some of our China stocks from offshore to more domestic thematics and listings.

JG: Are you sticking to the funds’ contrarian, value roots, or do you think that needs refining?
TA: Well, you've got this 30 year proof of concept that it works. And in my view, there's never been a more important time to hold those contrarian values in place. And the reason is we've had this rise in passive investing, and so most Australian investors have got these ETFs that have a high weighting towards US technology stocks, and they need diversification, and that's what Platinum is bringing to them. We've got diversification into the UK, into Europe, into China, into sectors like industrials, pharmaceuticals, and financials. That's why I think at the moment, it's absolutely essential to stick to those roots in contrarian, value investing,

JG: The International Fund is long-short and manages currencies – in your view, how are these best used to enhance performance?
TA: When we look at the outperformance of the Platinum International Fund over 30 years, one of the biggest drivers has been our use of shorting the market in a crisis. So really protecting the upside that we've gained on positive markets when we get those big stock market events - I'm talking the dot com crash, I'm talking the GFC - we provided invaluable protection to investors, and that's been the core drivers.
We're still looking at ensuring we've got that great crisis protection in place. It's not that we're always bearish or we're always using heavy shorts; it's trying to use them to protect our investors during those serious market events.

JG: Is that shorting a bottom-up or top-down process?
TA: There's a bit of a combination of the two because when you're looking at identifying a crisis that would normally come from top down analysis but can also come from company earnings results and talks with management. But we also do bottom-up shorting as well. We'll find individual stocks that the analyst sees as really offering skewed potential downside over upside, and thinking that's a great place to put shorts on. So there is some of that bottom-up shorting, but the big crisis protection tends to be a top-down.

JG: A big talking point is Trump and the moving feast of tariffs. How do you think about that and the market environment?
TA: You can see the thinking, right? If we can raise cash through tariffs and through government efficiency programs, we push this American first agenda, but we also raise money for tax cuts. You can see how they think it could work, but it's using a lot of political and financial capital, and what seems like a bad bet.
My view is that the standard of living in America will decline through this, and you're asking the American consumer to take on extra price rises at the tail end of a cost-of-living crisis. I think this is a net negative overall.
But you can get the theory, and if other countries blindly say, ok, we'll accept a 10% tariff in return for nothing, the US gets this extra income as part of it, then trade isn't massively affected. You can see how that could work. I think in the long run, countries aren't likely just to accept that 10% - there's going to be some reciprocal action. And you've got the big sticking point on China coming through as well. Because of this dislocation occurring in the global economy, it seems like a net negative overall.

JG: What are the biggest opportunities and areas of risk around the globe?
TA: Opportunities are looking where other people aren't. We try to find stocks that have got wonderful businesses, wonderful operating models that aren't necessarily broadly appreciated or priced in.
We've been investing in China liquor via Moutai, Norwegian salmon producer Mowi, Korean bank Shinhan, Danish wind farm Orsted, Hong Kong lawnmowers via Techtronic, and Canadian uranium Cameco. They're all these diversified themes around the world. These are contrarian value plays. Then you've got whole sectors that aren't loved or appreciated like consumer staples and pharmaceuticals – there are lots of areas that people aren't investing in. That's where the great opportunity is at the moment.

Whereas the risk is if all your investments are in one thematic in US large cap technology, and we get a big reversal there, then your whole portfolio can be really upset. Not having that diversification is a risk at the moment. We see outside that core theme in US technology that there are many opportunities around the world to invest in great companies at reasonable valuations.
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defiant to the end. Woeful performance

$1.32 (with NTA above $1.50)

meantime, the fees flow freely?!

PMC has secured the first Court hearing date in respect of the Scheme of Arrangement and can now provide shareholders with the revised timetable, set out at the end of this announcement.
Under the revised timetable, subject to obtaining the necessary Court orders at the first hearing, the Company expects that:
• the Scheme Booklet containing information relating to the proposed restructure, including details of the benefits and potential disadvantages, the independent expert’s report, a notice of meeting and details of how shareholders can vote, will be provided to shareholders on or around 11 July 2025; and
• the Scheme meeting will be convened on 12 August 2025.

PROPOSED SPECIAL DIVIDEND IF THE SCHEME BECOMES EFFECTIVE
The Board is currently proposing for the Company to pay, subject to the Scheme becoming effective, an amount approximately equal to the Company’s retained earnings that exist as at close of trading on global markets on the Business Day immediately prior to the Scheme’s implementation day (Valuation Date) (after taking into account all costs and expenses related to the restructure), as a dividend (Special Dividend), but is yet to make a final determination.
The Special Dividend (if paid) will be franked to the maximum extent possible, but will not be fully franked.

$1.36

I think the key takeout is "long suffering." :

Fees tiff throws Platinum spanner into L1’s takeover machinations​

L1 Capital’s move on Platinum Asset Management faces an early skirmish over fees and performance that threatens to derail its bigger plans.

07 July 2025

L1 Capital founders Mark Landau and Rafi Lamm may have big plans for their takeover of struggling Platinum Asset Management but a skirmish over the fund manager’s fees and performance may pose an early test for the deal.

We’re talking about the future of listed investment company Platinum Capital (PMC), whereby L1 has thrown a spanner into the PMC board’s plan to move shareholders in the underperforming listed investment company into an exchange traded fund.
First floated late in 2024, the proposal would result in PMC holders swapping their shares for units in Platinum’s International Fund. The decision came after a long review of the listed investment company by its board, led by Margaret Towers.


It found that shifting shareholders to an ETF would, at the very least, help fix the lag between the listed vehicle’s share price and the value of the assets it holds.
The plan was delayed because of a takeover offer from PM Capital Global Opportunities Fund earlier this year.
But, amid its own merger discussions with Platinum, L1 found time and cash to chuck a spanner into PMC’s plans as well, snap up a 17 per cent stake in the listed investment company and announce its opposition to the board’s ETF plans.
That’s almost certainly enough to block the scheme from going ahead, as it needs 75 per cent support at a shareholder meeting on August 12.

This has more than a few long-suffering PMC shareholders riled up, as they consider the L1 move as a way for Landau and Lamm to keep management and performance fees rolling in from the listed investment company at their expense.
Lamm and Landau have long billed L1 as Australia’s leading fund manager, largely based on the performance of their flagship, the ASX-listed L1 Long Short Fund. The fund, according to L1’s website on Monday, has delivered annual returns of 10.3 per cent since its inception in 2018 – 1 per cent above their chosen benchmark, the ASX-200 Accumulation Index.

But fee generation is where L1 really holds an advantage over its rivals. Last year the fund manager was easily the most profitable of the private fund managers assessed by The Australian, booking a $103m profit which was almost twice that of nearest rival Hyperion. And a big part of that is the $2bn Long Short Fund, which generated $27m in management fees last financial year, and an extraordinary $58.3m in performance fees.

Why so high? Because the fund pays a 20 per cent performance fee on any return on investment through the year – provided it doesn’t reduce in overall value – not just on returns that come in ahead of a selected benchmark, which is a common bar in the industry.

Effectively that means L1 still collects fat fees from the fund even if it doesn’t beat the index, which it hasn’t been doing for the past three years, when returns have been running at 3.8 per cent a year against 9.6 per cent for the ASX 200, according to L1’s own figures from May.
As L1 was keen to point out on Monday, the five-year figures are far better, at an average 19.2 per cent return a year against the 12.1 per cent gained by the ASX 200. And it does recommend a five to seven-year investment horizon. That still leaves plenty of time to improve the returns for shareholders who bought in since 2022, we suppose.

But, on figures released by L1 on Monday, the Long Short Fund is still trading more than 10 per cent below its pre-tax net tangible asset backing – exactly the reason PMC’s board is recommending its shareholders back a shift into an ETF instead.

Which L1 opposes.

All of this may go some way to explaining why PMC shareholders have the hump with Lamm and Landau. That, and the fact that L1 has still to spell out its reasons for opposing the shift, although the fund manager tells Margin Call it definitely has plans to create value for PMC shareholders.

PMC is valued at only $405m by the market. It is something of a sideshow in the potential merger between L1 and Platinum, which still has about $8bn in funds under management, even after another $428m went out the door in June.
But, as PMC shareholders gear up for a fight over the matter, the skirmish could have ramifications for the Platinum merger, given that Margin Call is told there are significant crossholdings between the two companies.

For its part, L1 is sticking to its guns, telling Margin Call it believes there is a “a superior opportunity for shareholders than simply running the same strategy as the open-ended equivalent of Platinum International Fund”.
“Focus should be on delivering the best risk-adjusted returns over the long term, not simply rewarding short-term traders looking to conduct a perceived arbitrage,” L1 said.

​

and to paraphrase Mandy Rice-Davies
"They would say that, wouldn't they".

Dona Ferentes said:

I think the key takeout is "long suffering." :

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Baffles me why "long suffering" retail share holders would continue to hold it.

Fascinating times lines involved.

26 April 2024. Required to re-assess the continuing operation (winding up) as the LIC had been trading at an average discount of 15% to NTA over twelve months. Price at that time was $1.37.

24 July 2024. Consideration about merging with PIXX so PMC share holders could trade at close to NTA.

31 July 2024. Announced the NTA gap had been closed to 8.3%. Price at that time was $1.46. Sunset clause not triggered. Hooray!

My word, the volume around then was, um, very, very high - about 7m over two days.

As for the outcome, who would have thunk it? A stunning result.

Bellcose said:

Baffles me why "long suffering" retail share holders would continue to hold it.

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now $1.48 ... pre-tax Net Tangible Asset backing per share as at Friday, 15 August 2025 was $1.5952...
And a 3c ff announced today.

especially now the mFund Jiggery-pokery has been closed off.
(Hat Tip Bellcose in another thread)

and last week;
Platinum Capital Limited refers to the announcement of 12 August 2025 regarding the director nominations received from Wilson Asset Management for threenew director candidates, being Richard Caldwell, Julian Martin and Geoff Wilson (Wilson Director Candidates).

The Company confirms that it has also received an unsolicited confidential, non-binding, indicative proposal from Wilson Asset Management.. The Wilson Indicative Proposal provides for the existing management agreement with Platinum Investment Management Limited to be terminated and for the Company to enter into a new management agreement with Wilson Asset Management. Under the new management agreement, Wilson Asset Management would manage the Company’s investment portfolio using the investment strategy Wilson Asset Management employs for WAM Global Limited (ASX: WGB); including the research driven and market driven investment processes, with the investment strategy of the Company to have a focus on mid, large and mega-cap companies in global markets.

The management fee and performance fee of the Company under the new management agreement would be the same as the existing agreement with Platinum. Wilson Asset Management would also honour the recoupment of the aggregate under-performance of the Company in relation to the performance fee calculation.

Dona Ferentes said:

Platinum Capital Limited refers to the announcement of 12 August 2025 regarding the director nominations received from Wilson Asset Management for threenew director candidates, being Richard Caldwell, Julian Martin and Geoff Wilson (Wilson Director Candidates).

The Company confirms that it has also received an unsolicited confidential, non-binding, indicative proposal from Wilson Asset Management..

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Those fees, those wonderful fees. Rivers of gold they are.

Bellcose said:

Those fees, those wonderful fees. Rivers of gold they are.

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Belli, how can you day that? why these people are so nice. Altruistic, even.

“We’re trying to do the right thing by long-suffering shareholders.” Geoff Wilson

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"We’re trying to do the right thing by long-suffering shareholders.” - L1 Capital

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Mark Landau and Raphael Lamm, the co-managing directors and co-chief investment officers of L1 Capital. want to turn Platinum Capital into a global version of their top-performing flagship strategy, the L1 Long Short Fund. The existing L1 Long Short Fund is available to ASX investors via an existing listed investment company. But the fund’s rules limit its international exposure to 30 per cent. Platinum Capital, if L1 gets control, would face no such constraints. And that’s got the pair excited, particularly after what they’ve seen during the Aussie reporting season

“I’d say an incremental dollar, we prefer to deploy it offshore today for the medium term,” Lamm says. “The Platinum Capital vehicle is going to be the key to the growth of L1 for next five years. We’ve seen the international idea flow surge in the Long Short Fund, particularly over the last five years. We’ve just had more idea flow than we can fit within our 30 per cent international constraint. And so it’s not like we’re building a new product from scratch. There’s just an extension of what we’re doing, and it’s the strongest performing part of what we do.”

But not everyone is on board with Lamm and Landau’s plan. Several activist investors, including David Kingston and Miles Staude, a portfolio manager at Global Value Fund, were unhappy when L1 spent $75 million buying shares in Platinum Capital. They used their stake to effectively force Platinum Capital’s independent board to block a plan to turn the listed investment into an exchange-traded fund and buy back up to 50 per cent of the vehicle’s shares. A 20 per cent buyback has since been announced and has L1’s support.

Resistance from Wilson Asset Management​

As well as its proposal to take over the management of Platinum Capital, L1 has put forward three directors for the Platinum Capital board: Rachel Grimes, David Gray and Douglas Farrell.

But L1 is now facing resistance from Wilson Asset Management. It has launched a counterproposal under which it would take over the management of Platinum Capital and appoint three directors to the board: WAM founder and chairman Geoff Wilson, Richard Caldwell and Julian Martin.


Wilson says he was forced to step into a situation he believes is inherently unfair for Platinum Capital shareholders, more than 30 per cent of whom are also WAM investors. He’s angry that Platinum Capital has wasted what he estimates is $25 million pursuing the conversion of the vehicle to an ETF. He says L1 should be forced to make good what Platinum Capital investors have lost for past underperformance – a figure WAM puts at $314 million – before L1 starts to charge performance fees.

Wilson says retain Platinum Capital’s current fee structure, go ahead with the 50 per cent buyback and make good any underperformance before charging performance fees.

“We’re trying to do the right thing by long-suffering shareholders.”

Not surprisingly, that’s exactly what Lamm and Landau say they are doing, too. They’ll wait to discuss a new high watermark for the fund with the new board and say their $75 million investment in Platinum Capital is a symbol of their commitment to Platinum Capital.

“We’re genuinely doubling down on long-term growth for the business and increasing our personal investment in our funds,” Lamm says.

The extraordinary general meeting to decide the fate of Platinum Capital will be held on 01 October. Expect the fundie war of words to keep raging over the next four months.

And all the while the "He said, they said" argy bargy unfolds, a significant investor in PTM is going to pull $580m out over the next couple of months.

Never held any of the funds but if I, as a retail investor, had held them (unwisely) I'd get out of all Platinum funds even if it meant taking a loss.