interview transcript - Bitly

GOING THE DISTANCE: WHY YOU NEED TO INVEST FOR THE LONG TERM Kerr Neilson, Managing Director, Platinum Asset Management Vanessa:

Blair we’re in for a treat today because I’ve organised a masterclass for you that I know you’re going to learn a lot from. This is Kerr Neilson.

Blair:

Lovely to meet you.

Vanessa:

Arguably Australia’s most successful investor.

Blair:

No pressure.

Vanessa:

And he’s promised to teach you everything he knows.

Blair:

Well you’ve got me in a very serene environment.

Vanessa:

Exactly.

Blair:

So, you’re just making me comfortable before you give me the big punches so that’s cool.

Vanessa:

Well there’s a reason we’re here. We’re at the Chinese Gardens. Now I’ve filled Kerr in that you were raised in Asia so you’ve got a passion for Asia.

Blair:

I do.

Vanessa:

Kerr’s also got a passion for investing in Asia. He has a very successful funds management firm that invests globally and has a dedicated fund in Asia. So, Kerr I’m going to hand over to you to talk to Blair about why he should consider investing outside of Australia.

Kerr:

Well you’ve got to decide to invest in shares in the first place.

Vanessa:

Yes, that’s true.

Blair:

That’s very true. And that’s the first beginning and I think I’m slowly understanding the benefits of doing such a thing.

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Kerr:

And the problem we have when talking about investing in shares is that people feel they’re intangible. They feel disempowered because they say, you know, “I understand property, I can touch it, I can understand the dimensions around it.”

Blair:

You’re speaking exactly everything that I have said, yeah.

Kerr:

And shares are a problem because they’re seemingly intangible. There’s a huge variety you can choose from. And then the last thing that really frightens people is the prices move up and down without rhyme or reason. So that really frightens people. And so what I try to do is remind anyone who has the patience to hear that companies are at the actual centre of our economic system. They are the things that create jobs. They are the process through which we find solutions to problems and so on.

Blair:

Yeah of course.

Kerr:

So, it is very, very tangible when you think on the whole, and then when you think about individual companies it also is very tangible. Like you probably use Facebook or Google or something. There’s no confusion in your mind that it’s an interesting business and so when you start thinking internationally you do get all these choices and then you need some grading mechanism to be able to choose which ones you want to learn.

Blair:

Yeah. And that’s where the common man like me is like “whoa, I haven’t got the experience or the knowledge to do that and you know, would I take such a risk?”

Kerr:

Then what would you like to do? How would you like to do it?

Blair:

Let you do it!

Kerr:

That’s kind.

Vanessa:

That’s what Kerr wants too so.

Blair:

That’s what I want. Well, I mean finding the avenue of trust to do that but also learning I think, like you said, learning about the market.

Kerr:

But it’s difficult to build trust because you’ll come into a fund. The fund may go down in price and then you’ll have all sorts of regrets

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and so it’s not really good enough just to say that. Because what I’ve got to do is convince you why that immediate disappointment or on the opposite, a reinforcement [happened]. That’s what we try to do when we communicate with clients because we do say that if you pay the right price for things you will end up making quite a good return. You can’t rely on trust, you have to have understanding. And so the understanding comes from this first notion that businesses, some are in the ascendance, some are in decline. That’s one aspect. The second aspect is the price you pay. So just like with property there are two elements. One is the land value and the second is the property, the structure itself. With shares there’s an inherent value which gives you your core, like your land value. And then there’s a more transient value which is determined by current earnings and expectations. And they bob around quite a lot. Blair:

Yeah.

Kerr:

So, what we’re trying to do is find companies that have very good inherent value. And not get too emotional about the short-term bobbing around.

Blair:

So, does that mean that the inherent value is something you attach that kind of capital growth to, even though the other value that might bob around is part of it, you know, that because it has such a great inherent value it will grow steadily over time?

Kerr:

Perfect.

Blair:

Right, okay.

Kerr:

And so what you’re thinking about when you’re looking at a company is what protects that entity.

Blair:

Yes.

Kerr:

What allows it to be protected and to grow.

Blair:

Yeah, and if I can use a real estate analogy, with like land value, it’s location generally.

Kerr:

Yes, yes.

Blair:

You know that’s that inherent value that will grow in capital.

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Kerr:

When you look at companies it’s what’s the minefield around it to protect it? And you can identify, you know is it the technology, is it just that they do a fantastic job with, with client support, is it their manufacturing processes are far superior to other peoples’? So, you try and break it up into categories. What are they really good at? So, you then start building a picture about this land value.

Blair:

And that’s just one company?

Kerr:

I only do one. Each company at a time.

Blair:

Right.

Vanessa:

So how many in, say, your Asian portfolio, how many stocks do you have? How many companies?

Kerr:

We’d have about 70 to 80 companies.

Vanessa:

So, 70 to 80. Kerr and his team are doing that research for 70 to 80 companies in plus the ones they’re not putting in.

Kerr:

So all the time, you know, our guys would be looking at, they’d monitor, in the portfolio we’ve got 30 people in the investments team. So they need to have, you know, let’s say 10 companies in various portfolios. And then they’re looking for new ones and then they’re looking at the existing ones to say when should we be selling it, has the price has gone too high?

Blair:

Okay.

Kerr:

Or we made a mistake and this isn’t the secure minefield protected business we thought it was and we should sell it.

Blair:

Sorry to use my crass terminologies, but it’s kind of like a basketball team then isn’t it? You’ve got to interchange your players when they’re tired.

Kerr:

Exactly, and I like that because you’re picking on the point we make is that you can run with a stock for a certain period of time but then the price starts being extrapolated. People become too comfortable. And they start paying too much.

Blair:

Yeah.

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Kerr:

And that’s when you’ve got to start saying “yes, it’s a great company, but now you’re paying too much for it.” Because there’s always something that’s out of favour. Now the trouble is you can delude yourself and the something else isn’t as good as the one you’ve actually got to know very well. Because the longer you’ve owned a company the more you really understand it.

Blair:

And do you get quite emotional about it too because you’ve seen the growth.

Kerr:

Oh, that’s the danger.

Vanessa:

There’s the big one. Emotion is the enemy of buying shares, right? Because people usually sell at the worst time based on emotion, fear.

Blair:

And I guess it’s protecting something that obviously has taken such a long time to build. But from all things I’ve been hearing it’s like just hold on. It’ll, it’ll either bounce back or we’ll get somewhere with it.

Kerr:

Well certainly a portfolio should. You know individual companies can get into trouble. And then that’s why portfolios are important. There’s a whole lot of theories about whether you should have a very limited number of shares in a portfolio or a broader number.

Blair:

Mmm hmm.

Kerr:

And it can change through markets. When markets are really down and out, you’ve got very little general risk because everyone’s so negative. And you could have a very limited number of shares. But as markets go up I think you’d probably want to have a slightly broader portfolio.

Blair:

Okay.

Kerr:

But this is all theory. The main point is it’s not all eggs in one basket.

Blair:

Right, yes, yes. And that’s been my thing. As a property investor, a traditional Australian property investor, but I do feel in my time of life that I am becoming a bit too narrow in my investment strategy I guess, and hence working with something like this is a good idea. You’re more of a global situation, instead of looking just on, on Australian soil, you deal a lot in Asia is it?

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Kerr:

Yeah.

Blair:

So, what’s your interest in that and why did you go there?

Kerr:

Oh, so right now the most favourite market is the US and it’s very thoroughly owned and the valuations are very high.

Blair:

Okay.

Kerr:

They can persist like that for quite a while.

Blair:

So, is that bad value then do you feel?

Kerr:

In many cases it’s not great value anymore, and we’re always looking at relative value, absolutely value and relative value.

Blair:

Mmm hmm.

Kerr:

So, when we look at Asia which has a history of growing faster than the western hemisphere and when we look at the values they don’t match. The value is incredibly interesting in relation to their growth rates.

Blair:

Right.

Kerr:

And so we meld those two and we say “well in that case even though most people want to own the western markets you’d prefer to own the eastern markets now.” So we tend to tilt to where people are less enthusiastic. And they’re less enthusiastic often because it’s just transient. They’re worried about the economy in China, or they’re worried about the Indian economy

Blair:

And that’s a lot of unknown.

Kerr:

People tend to worry about the whole Feng Shui, you know the type of business relations one has, the whole question of boards being stacked in Korea, all of those are real but when there’s uncertainty in markets they tend to discount the price. So, then your problem is how much is a fair discount.

Blair:

Right.

Kerr:

So, I wouldn’t deny that there are issues around all of those things, but you’ve got to just decide if it’s over exaggerated or whatever.

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Vanessa:

But you’re going there right, to Asia, meeting the companies.

Kerr:

I know we see the companies, the guys are always travelling.

Vanessa:

So, Kerr when you’re over looking in say China, tell Blair about a couple of companies that you find are interesting, because it’s so different over there than here. I mean they don’t even use Facebook right, they’ve got a whole other system. But, you know, talk to Blair about a couple of those opportunities so he can get a sense of how Kerr and his team are looking at these companies.

Kerr:

Yeah, their internet companies are really world leading because they’ve jumped the barriers because they didn’t have credit cards, they didn’t have risk receptive banks, the really aggressive marketing banks, it was all about lending to state-owned enterprises. So, they’ve formed these mini-applications on a platform where you can do everything. You know WeChat, you can make payments and so on. And they’ve got something like 500 million people using their phones to make payments. And so, this is the sort of opportunity you can see where you make the presumption that everything’s going on in Silicon Valley. But in fact, when you’ve got a population of 1.4 billion people…So that’s what’s exciting to us, that there’s lots of things happening and everyone presumes it’s all about, you know, cheap plastic goods or something. That’s not the opportunities that we see.

Blair:

Yeah and that’s interesting. So, with say the tech side of it. Say it is, you know, 500 million phones, do you then as a company look at what the phones are made out of to then go and find a company that made benefit from that sort of production?

Kerr:

Of course. But you’ve got to anticipate that.

Vanessa:

Kerr’s passion is companies and I love hearing you speak about them.

Kerr:

Mmm, mmm.

Blair:

Yeah.

Vanessa:

Because, you know, Kerr said to me a company is a living organism.

Blair:

Yeah, yeah.

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Vanessa:

You know I love the thought of that because I run my own company. And if you think there’s a person in every one of those businesses just as passionate about their business and Kerr’s job is to go and find out, what makes them a great investment.

Blair:

That holds a lot of responsibility as well like to make sure that, and like you said in your way of measuring, it’s like any relationship isn’t it? You kind of meet someone and you’re like, you go through all the catalogues.

Vanessa:

Trying to figure them out.

Blair:

But it’s such an interesting way of doing it. And whether it’s a technique or, you know, independent to yourself.

Kerr:

There are certain rules you can use. You know like with property you’ve got certain yield/yield.

Blair:

Yes, yeah.

Kerr:

And location laws so you want to use some rules but you must keep questioning the rules. Because you cannot extrapolate, that’s the big thing. And the other thing we find is this overemphasis on the nearby event. So, if you think of, you know air travel after 9/11.

Blair:

Yeah right.

Kerr:

People went out of the skies. They just said this is too dangerous. And it was just crazy because it was probably the safest time to travel. And so when we’ve just had a coup in Thailand, we’ve done our best buying.

Blair:

And that’s objectifying those, that measure isn’t it?

Kerr:

Mmm, yes. Because you’re saying this is the long-term tendency, how high above or below is it against that tendency. Because there is a tendency. So, for example cash gives you about 1 to 1.5 per cent through time.

Blair:

Mmm hmm.

Kerr:

Over 100 years. Bonds give you around 3 [per cent].

Blair:

Mmm hmm.

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Kerr:

And shares give you around 6 [per cent]. Now these are all real returns so you can then add inflation. So there’s a tendency of 6 per cent. Which incidentally in the last 15 years has been about what the Aussie property market has done. Six to eight, so they’re not so different. But if you say that’s the tendency. How much are we below that at the moment, and you know because prices you can track very clearly. And indices you track which is an amalgamation of a whole lot of share prices bulked up.

Blair:

Yeah, okay yeah.

Kerr:

So that’s how you arrive at an index. It’s your company’s value, my company’s value, we add them together and we form this chain.

Blair:

Got you, yeah.

Kerr:

And you can see that what we prefer doing is when things are below trend.

Blair:

Yeah.

Kerr:

What you’ve had for a while now is the American market sitting well above trend. And that’s confusing for us because we just feel uncomfortable. And we’re not crowd followers which is another technique for managing money. So if you want to be a crowd follower don’t come to us, but it’s another way of managing money. We’re not condemning it, we’re simply saying it’s not what we do.

Blair:

It’s not your technique and the way that you do it, yeah.

Vanessa:

So that’s Kerr’s philosophy. We talked yesterday about philosophy. His is not to do what the crowd does.

Blair:

Mmm.

Vanessa:

There’s a whole philosophy around exactly where the crowd is, and safety in numbers.

Blair:

And that’s a risk and reward strategy.

Kerr:

Yeah, yes.

Blair:

So I’m, you know, a new dad with a baby on the way. How do I start? Like are there ways now, and I love the international scope because growing up on an international basis, it gave me a broad

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spectrum and I understand that, you know, Australia is one beast. But there’s so many more at play, and population and all that kind of stuff as well, so how do you do that? Kerr:

I’ll charter this because I’m going to say why don’t you just read a bit?

Blair:

Yeah right.

Kerr:

You know read about how people approach money management and so on. Because as I say, if you step in and you have a bad experience in your first couple of weeks, you’ll think “oh I knew I should have read, I knew I’ve been talked into that.” And you know on our website for example we post a lot of information to try and give people a better understanding and so do a lot of other fund managers. So read that sort of input. And then try and talk to individuals about their businesses and you’ll see how passionate they are about what makes their businesses work and then you start thinking much more comfortably about the tangibility of these businesses. Then it’s no longer just this gambling pit where prices move everywhere every day. The game is to understand what are you really buying.

Blair:

Yeah. And do you see it as a game? It’s an interesting word.

Kerr:

It’s a serious game.

Blair:

Yeah, right.

Kerr:

But it is a game otherwise, as you were saying earlier, everything becomes too serious. It is other people’s money. We incur investments with our investors so the game is on us as well. But everything’s a game in the end. And the more you enjoy it the better you are at it I expect.

Vanessa:

This is why I wanted you to meet someone like Kerr and have these masterclasses because this is someone who lives and breathes what he does, he loves it.

Blair:

Yeah, yeah, yeah.

Vanessa:

You know, you love acting. When you love something you put your heart and your life into it. And people on the outside don’t see them for how amazing they are at what they do. I love it, that’s why I’ve been in this industry so long because I love listening to it and

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hearing and learning. Now I’m not a professional investor, and never could be, but to hear the ideas, because this is what shapes the world, that’s what’s exciting. Investment shapes the world. So, the decisions professional investors make shape who succeeds, who doesn’t and what economies thrive, what don’t. So, you start to see this has a massive impact globally. Blair:

It is huge and it is very confronting, you know, and obviously coming from my background, which is about relationships and facing a very complex world.

Vanessa:

Kerr doesn’t go and meet people all the time.

Blair:

No, I know and I appreciate that but it gives that, and I keep using the word trust. It makes me trust the amount of experience that you have.

Vanessa:

Absolutely.

Blair:

And, you know, that excites me because like you said, and I’m probably at that stage where learning now is very important to me and learning the right stuff is more important than, you know, watching too many videos on Facebook.

Kerr:

Well exactly.

Blair:

So yeah, that’s really interesting.

Kerr:

Because if you met the different members of the team what you’d see is a huge contrast. You’ve got the sort of mathematical folk, you’ve got the tech folk, you’ve got a specialist who ah runs our healthcare fund, you know she has a PhD in biotechnology engineering. So you see, within a team you’ve got to have these, to get really specialised you need these very good ah individual specialists. And you give them time to develop because they don’t pop out in a room as fully-fledged analysts.

Blair:

Yeah of course, it’s a story that you’ve got to keep building on.

Kerr:

Yes, that’s exactly right.

Blair:

And, you know, you’ve got to have some mistakes in there as well to learn from.

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Kerr:

And we do have, and that’s always difficult because people say “well you’re the expert how can you make mistakes?” Everyone makes mistakes.

Blair:

Yeah exactly, yeah.

Kerr:

But it’s a question of the size of your mistakes and the size of your wins. That, that’s where the trick lies.

Blair:

Yeah exactly, yeah.

Vanessa:

Well I feel like you’re on one step closer, and Kerr’s right too, truly understanding it. Because once you get it then it’s not as big a risk, you understand what you’re moving into because share prices do go up and down.

Blair:

Yes, yeah. And as I was mentioning, that’s what we get fed. The information we get fed is about volatility. It’s noise. I wish people would spend more time given the foundations of the understanding more than reacting to the drama of it so, coming from an actor that’s a bit much but…

Kerr:

The trouble is it does go through some cycles and you do get periods when things are going down. We haven’t had that for a while now. And I don’t know how to really prepare people when we go through those, those periods because the inherent value is creeping up. But it’s just got a bit above its inherent value or whatever. At the market and then everyone starts falling about and, and wanting to redeem their units. Or you know sell their shares. And everything is about perspective. Horrible to tell you but sometimes the stock market can go up when the economy is going down and vice versa.

Blair:

Yeah.

Kerr:

So to the lay person there seems to be no rules. There seems to be …

Vanessa:

No correlation.

Kerr:

No correlation. And that just unsettles them. So you have to have a commitment of time. Time to study and then time to sit.

Vanessa:

Which is like what, at least five years to hold onto something do you think?

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Kerr:

I think five years. I mean what you see is, this is really interesting.

Blair:

Is what part of the cycle you enter in going to give you that experience to keep on keeping on and etcetera?

Kerr:

That’s unfortunately the case. Because if you come in at the wrong time you’ll know that it was a trap.

Blair:

Yeah, yeah right, okay.

Kerr:

But what is the wrong time? There’s not really but what I think you can do is you edge your way in. And you don’t just say now all on black or all on red.

Blair:

That’s my style.

Vanessa:

No. That is why we’re talking to a professional, learning things.

Blair:

Yes, yes that’s why I’m learning slowly, I understand Vanessa.

Vanessa:

We had a session with a great financial adviser.

Kerr:

Mmm, mmm.

Vanessa:

Where Blair kind of found out that he really needs $3 million to retire in the way he and Kristy want to live. But remember you were more shocked at what you needed in the next year to pay for the baby and that.

Blair:

Yeah well because I only live now, I don’t think about there.

Vanessa:

And I was like “okay that’s one thing, but let’s get you there.” And tapping into this thinking and starting even if it’s small, it just has to be small. Having a plan now means you will in 30 years be where you want to be. And you’ll turn around and go best thing I ever did.

Blair:

Absolutely.

Vanessa:

Best acting gig I ever got.

Blair:

Yeah best kind of semi-not-acting, acting gig I ever did.

Vanessa:

Yeah best reality gig I ever did.

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Blair:

Yeah, and it is that isn’t it? Obviously having kids is a big part of this as well and as I mentioned in our session, I can give my daughter all the knowledge I’ve got with travel and worldly advice and culture and people. But to be probably a little bit more responsible, teaching her how to set herself up for the future would be something she’d probably appreciate that little bit more in the end.

Vanessa:

Well as much.

Blair:

Mmm, as much.

Kerr:

But I think the, the notion of a savings scheme is quite useful. Because it does mean then you are tilting in. But then there, as I say at the start, you just say I’m going to tilt in this amount and start with a small amount. And then just tilt. You just keep doing it.

Vanessa:

Mmm.

Blair:

Yeah.

Kerr:

But if that gets hard, you know, if you have a medical bill or something…

Blair:

Yeah, yeah.

Kerr:

Or you know something there.

Blair:

It’s got to be liquid in some form doesn’t it, yeah? But I think it’s a really nice way to motivate someone like myself and my wife. My wife has been mentioning, about our daughter and our next baby to come, she’s like, “we should set something up. Because you always see those studies now, and due to the availability of the information. If we’d done it back then this is where we could be.” And you know you’ve just got to jump don’t you, with some reading, I will do some reading.

Vanessa:

Mmm well when, you know Kerr says cash gets you 1 and 1.5 per cent over time you look at all the high interest savings accounts. That’s where they’re at at the moment.

Blair:

Mmm.

Vanessa:

What did your Asian fund do last year Kerr? And, you know, we know past performance is no indicator for future…

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Kerr:

I don’t know but over a long period of time, you know we’ve been in the teens, you know late teens across our funds.

Blair:

Oh wow, yeah.

Vanessa:

Great, so over …

Kerr:

12 to 15 per cent.

Blair:

That’s amazing, yeah.

Kerr:

Over a long period of time. And that’s a better way of measuring it because there will be off years as I emphasise.

Blair:

Of course, yeah, yeah.

Kerr:

But there can be some huge years as well.

Vanessa:

So, five, 10, 15 years when you’re making that kind of money. When we talked yesterday about the magic of compounding.

Blair:

Yeah, yeah exactly, yeah.

Vanessa:

Versus a 1.5 per cent in the bank.

Blair:

Yeah, yeah exactly and it’s a shame that people aren’t taught that as much isn’t it?

Kerr:

Our longest running funds over 22 years made over 13 times your money and if you’d just been in an index fund you’d have done about three and a half times your money.

Vanessa:

So index is following the crowd and we’ll talk more about that in another masterclass but…

Blair:

Yeah, I don’t know much about that, yeah. And what was your bad year?

Kerr:

A bad year would have been, that’s a good question. I would have thought we’d be down 15-20 per cent. But I think that’s been our worst draw down is 20 per cent. But in bad markets we’ve tended to do very well because we’ve tended to run some shorting strategies to try and reduce the downside. But that in this last couple of years has cost me a lot of money, because the market has just been going like that.

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Blair:

Right okay.

Kerr:

So unfortunately, there’s nothing free.

Vanessa:

But great question to ask Kerr.

Kerr:

In a bad year don’t be astounded by a 20 per cent loss.

Blair:

Yeah and what sort of timeframes do you think, like very generally of course, that you can bounce back from something like that?

Kerr:

It’s interesting because with all the manipulation by the central banks around the world. What has actually happened is there’s been less clearing of markets and they’ve been pushed back up by dropping interest rates and spewing money into the system.

Blair:

Mmm hmm.

Kerr:

So, in the GFC I thought we’d have a more protracted bottom but it actually came back within months. Because there was such intervention by governments.

Vanessa:

By governments.

Kerr:

They completely confounded me at that time. I knew they’d do something, I saw the amount of debt out there being so large that it was going to be a permanent injury. But when they finished injecting cash it was like you know hormones into a wound. I mean it, it just came right back.

Blair:

Yeah, right. And so did that help you in the long run then? Or do you think you could have done better if they didn’t do that?

Kerr:

No, I could have done because we were so well positioned. And then you bounce back and I gave back a lot of what I’d saved clients from losing. So, our fund didn’t move down very much at all. But, you know, then because of my shorts they started to cost me as the market kept going up. I cut them I should have had none.

Blair:

Yeah.

Kerr:

So you always make mistakes.

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Blair:

I think one of the things I’m learning too, and mistakes are so important to growth and learning, but the fact that you have contingencies in place as a responsibility for your clients.

Kerr:

Mmm yeah.

Blair:

That’s something that, you know, builds the trust mechanism I keep harping on about.

Kerr:

Yes.

Blair:

And that’s something that you don’t hear much about.

Kerr:

Well not everyone does put in short strategies.

Blair:

Mmm.

Kerr:

And because it is difficult and so...

Blair:

Yeah and expensive as you’ve mentioned, yeah.

Kerr:

Yeah and they can be very expensive. So those are all the variables. You’ve brought up the right point.

Blair:

And do you do it out of responsibility or?

Kerr:

Well I guess so because, you know, we know there are no free kicks.

Blair:

Yeah. Damn it. I’ve had a couple but I mean they were only little ones, but yeah.

Vanessa:

Okay so Kerr in sort of wrapping up Blair’s learnings, and there’s been a lot today, I think you’ve really got a lot out of Kerr. Blair wants to sort of, his acting, it’s volatile. We’re using the volatility word now. So, from an income perspective he needs to look at things outside of property because he’s picking up tools himself now and doing renos and stuff, which is fantastic.

Blair:

Mmm.

Vanessa:

But there’s got to be something else that smooths out his income, because he wants to pursue acting still. You know he wants to do the things he loves, which we both know makes you happy in life.

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Blair:

And that’s the end goal isn’t it?

Vanessa:

Yeah.

Blair:

The happiness goal is doing the things you love, exactly.

Vanessa:

So, you know maybe, I don’t know what your thoughts are, I don’t know if global shares are the smoothing income that he needs. But this long term, this 3 million bucks he needs, I mean for Blair it’s time for him to start learning right, to put some strategies in place now. Because he has time, he’s relatively young.

Kerr:

Yes, yes.

Vanessa:

So, from a mindset perspective, if there’s one thing you can take from Kerr is now’s the time. To learn and get into, because you do have 20-30 years to make it pay. And if you’re talking about your track record of 22 years, and how much, 13 times your money, that their fund has done.

Kerr:

There’s no promise for the future.

Vanessa:

I know. And all the lawyers are going to tell me that. Past performance is no indicator. But understanding what you’re buying, well it’s the only measure you’ve got right? Plus, great research on the funds. Okay, well Kerr thank you for spending time with us.

Kerr:

My pleasure. It was nice to meet you.

Blair:

Yeah, lovely to meet you too, thank you.

Vanessa:

So, we will keep you up to date with Blair’s progress.

Blair:

Mmm.

Kerr:

Thank you very much.

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PLATINUM DISCLAIMER: The above information is commentary only (i.e. our general thoughts). It is not intended to be, nor should it be construed as, investment advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Before making any investment decision you need to consider (with your financial adviser) your particular investment needs, objectives and circumstances. Investment returns referenced in the video are the total returns of the Platinum International Fund’s C Class units, which are net of fees and costs (excluding the buysell spread), and assume the reinvestment of distributions. Class C units do not have a performance fee. Market returns referenced in this video are the returns of the MSCI All Country World Net Index in $A (“Index”). Platinum does not invest by reference to the weightings of the Index and the returns of the Fund may vary considerably from the returns of the Index. The investment returns referenced are historical and no warranty can be given for future performance. Historical performance is not a reliable indicator of future performance.

All material in contained in this document remains the intellectual property of No More Practice Pty Ltd ABN: 21 600 932 321 AFSL: 479019 (“NMP”) and its usage is subject to the terms of the Agreement under which is it is licensed to you. Reproduction or use outside of the terms of the Agreement is strictly prohibited. All information in this document has been prepared with all reasonable care, NMP accepts no responsibility or liability for any errors or omissions or misstatements however caused. Any advice is general in nature and does not take into account your personal objectives, financial situation or needs and must not be relied upon as such. Before acting on any advice, you should consider if it is appropriate to you, consider any Product Disclosure Statement and seek independent professional advice. Any investment can be subject to risk, returns can be volatile, reflecting rises and falls in the value of underlying investments. Past performance is not indicative of future performance and should not be relied upon as such. Any investor should seek independent professional advice.

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