About: Platinum Asset Management (PTM) is a fund manager that specialises in international equities. It has strong brand recognition within the Australian market, is typically classed as having a

Why it’s in the portfolio: Platinum’s operating costs are relatively low in comparison to peers, translating into higher operating margins for the business. The wealth management industry is also supported by mandated superannuation contributions which are expected to steadily grow over the long-term.

Fundamentals: PTM has a market cap of around $2.5b, a P/E ratio of roughly 15 and a P/B of around 8. PTM has a trailing EPS of 0.3 and pays 0.3 DPS, giving the company around a 99% dividend payout ratio.

What could go wrong: Platinum is particularly susceptible to foreign exchange and market movements. Both risks have the potential to decrease FUM and if either event were to precipitate this would negatively impact earnings.