In Kerr Neilson we trust
Thursday, 11 February 2010 12:25pm

Financial planners are three times more likely to favour Platinum Asset Management over other international equities fund managers, new research found.

An Investment Trends survey of 648 financial planners found 56 per cent of planners listed Platinum in their top three preferred international fund managers in 2008. This figure rose to 65 per cent in 2009.

The second most popular international equities fund manager in 2009 was Walter Scott & Partners, but only by a lower 19 per cent.

Platinum's flagship International fund has more than $8.7 billion in funds under management (FUM), according to Rainmaker. The fund is managed by Kerr Neilson, managing director at Platinum, and his team.

The fund returned more than 19 per cent in the 12 months to December last year, beating the MSCI World ex-Australia (Net Dividend) by nearly 20 per cent. This result places in on Rainmaker's top 10 best performing global equities actively managed funds over that time period.

This 12-month performance isn't a one-off event. The Platinum International fund has stayed in the top 10 best performing global equities actively managed funds over three and five years.

A Platinum spokesperson said the Platinum International fund and Platinum Asia fund have experienced the largest flows in the past 12 months due to both funds' performance and focus on capital preservation.

Platinum has an investor services team and provides regular updates to clients including monthly fund updates, quarterly reports and articles of interest, said the spokesperson.

Robert Thomas, national manager of technical research and paraplanning at AXA Australia, said he is surprised at the results of the research but is not concerned about financial planners placing too much emphasis on the fund manager's performance.

"They might have a preference for [Platinum] but that doesn't necessarily mean that's where their money goes," he said.

"If 69 per cent of the money went there - that would concern me. If you looked at a research data on FUM and flows, I don't think Platinum is getting 69 per cent of FUM."

He said Platinum's International fund is appealing because it has delivered returns over a number of market cycles.

AXA Australia use Platinum Asset Management funds in their model portfolios and approved product lists (APL).

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