Ann: Strategic review of Platinum Capital Limited, page-12

If you pick up 13% annualized from the scenario it gets converted to open ended, yes there is not much point if they underperform the benchmark by 15%. Whilst I realize it has happened before and could happen again, we need to be realistic of the odds of this occurring again. MGF had a bad 2022 and there was similar sentiment, only for holders to do very well in 2023 from their underlying performance and the discount contracting.

I see the deja-vu more like the MGF experience. In terms of comparing it back to their unsuccessful capital management initiatives from 2022, a lot has changed since with LIC sentiment. Peers are realizing that trapping in holders for a few more years does more damage to the brand when you have other unlisted products out there.

I look at it as they can underperform by 10% in the next year (which is difficult but if anyone can do that Platinum can ), and you probably still beat an ETF because of the likelihood of it converting to open ended. Who knows maybe they will strike it lucky like Magellan did after a few bad years and do half ok.

If they don't convert someone like Saba Capital will probably mop up stock over a year and run a campaign like they are doing with BlackRock in the US. Hardly worth it for Platinum to fight such a battle and possibly lose it all anyway one day. Just let 70% or whatever want to redeeem, they will keep some because some shareholders have probably put it in the bottom draw and scarred not to even think about it again and bother to redeem!

it is not a very exciting position though I must admit.