Ann: Funds Under Management - July 2020, page-21

The lowering of that 10 year number from 2017 to 2018 to 2019 is more to do with their GFC outperformance dropping off. Yes they had a good year in 2017 but really that was just making up for underperformance in the previous 5 years. (note the 5 year return in 2017).

My point is not that they wont have good years. My point is that if you looked at PTM's performance since inception in the mid 1990's and stripped out the 2 calls they got very very right (2000 and 2007) which I would personally attribute to KN (he also got 1987 right for BT) then I doubt that there is any outperformance.

Regarding missing this large move globally to digitisation. I would argue that KN would have got that right if PTM today were PTM in 2000. And if they had of got that right it would have underwritten FUM and flows for the next 10 years. Getting it wrong I personally think is going to be hard to come back from (only because as I pointed out I believe the market more than I believe the PTM commentary - i.e. I believe there is fundamental earnings substance to this move rather than it being due to valuation or multiples).

I (and the market) could be wrong and PTM could be right. But my point is that turning around 3.7%pa over 10 year underperformance is not an easy task. Again (Jason for your slide) I dont agree with the PTM commentary that turning around performance to this level is easy to do.