Problem and suggested soultion

Theproblem with PTM seems to be self-evident with following posts going straightto the heart of the FUM matter:

brrattt https://hotcopper.com.au/posts/58384167/single

concerning continuous monthly outflows

MarsChttps://hotcopper.com.au/posts/57355476/single

Perceived managed fund under performance.

It is a problem that PTM acknowledges bythe action it has already taken to shore up the FUM with introduction of newproducts like PAI, PIXX, PAXX in 2017 and now the launch of Platinum Bonds.

While such action is encouraging, it failsin firing up investor imagination. The current most successful Trust Fund isPlatinum International Health Fund (PIHF) which has grown FUM from 329m (Jun20)to 650m (Nov21) with new money flowing in at 10-37m per month, notwithstandingits performance was -2.1% in Nov21 and -6.1%in Oct21. Why? I think the current COVID situation worldwide has focused investors’ imagination on this issue and what better way to invest then with a proven fund manager.

I would like to see PTM introduce aPlatinum EFT as the next evolution in product development.

JPGuru https://hotcopper.com.au/posts/58390394/single

The issue is what should the EFT invest in that will fire upinvestor imagination and involvement. I would suggest that the EFT should “embrace companies and industries on the leading edge of ‘disruptiveinnovation’” that are likely to “transform the existing world order during thenext five to ten years such as DNA sequencing, robotics, energy storage,artificial intelligence, and blockchain technology”. With PTM’s expertise infinding value in any of these new fields, the “Platinum Disruptive InnovationEFT” (for want of a better name) could be a success. Do you have any otherideas, should PTM cover the field or concentrate on one, eg artificialintelligence?

The second issue is how would you fund it?What comes to mind is that PTM implement its 10% buy-back at current prices ($2.61)and buy back 50m shares (10% of no shares) at cost of about $130m. It may meana reduction in dividends. At a future date when SP more accurately reflects intrinsic value of $4 (assuming this will occur as result of turnaround in China’s regulatory stance and wash out effect of US inflation etc) PTM could initiate a CR at $3.75 with issue of new shares to raise $187m with the launch of EFT Prospective. The $187m would be used as seed money to start the EFT. Hence, the buy-back and CR would be a valid capital management reason.

I would like to brain storm the suggestedsolution to see if it has legs or are there better ideas HC posters can contributebased on experience. The Board of Directors is meant to look after shareholdersinterest and if we can get some good suggested solutions then it would be appropriateto inform the board via email.

I’ll press the “start” button by postingthis post.