7 questions asked at 2023 Platinum Asset Management AGM
November 18, 2023
Below is the text of the 7 written questions lodged at the 2023 Platinum Asset Management hybrid AGM held on November 15. See webcast of 107 minute meeting. Cranky founder Kerr Neilson voted his 21.4% stake at the meeting, delivering a huge 1st strike with 59% against the remuneration and almost defeating the CEO's LTI grant which only scraped through with 53% support.
Q1. Could CEO Andrew Clifford and the chair comment on how relations are with our founder and largest shareholder Kerr Neilson since he retired from the board 12 months ago and then became a public critic, calling for M&A discussion and separation of the CEO and CIO role.
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Q2. Regal Partners briefly became a substantial shareholder in Platinum and then disappeared. Their share price has plunged from a peak of $17 in late 2019 to $2 recently. Did we have any discussions with Regal, what is the size of their current holding and how much did they lose buying a substantial stake in our business?
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Q3. For the first time, our market capitalisation of $695 million has recently fallen below our claimed net assets of $752 million. Could the auditor please comment on which assets, if any, were examined for impairment leading into the full year results.
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Q4. Regal recently bought Chris Mackay's 6.6% stake in Magellan. Were we given an opportunity to buy this stake or did we read about the transaction in the newspaper? As chairman of this company, how well connected are you to the key industry players as consolidation plays out.
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Q5. Despite our poor share price performance we still have around 21,000 retail shareholders. Does Andrew Clifford know roughly how many of them have been or once were also clients of the firm?
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Q6. Many of the best known names in equity funds management have exited in recent years, including Hamish Douglass, John Sevior, Kerr Neilson and Rob Luciano. Does Andrew Clifford still have the fire in his belly to keep going when the whole sector seems to be in structural decline with the rise of industry funds and ETFs, which have delivered long term better performance than listed equity managers. How does Andrew think he will go answering to an external CEO? Won't it be frustrating not to be in control. Could Andrew comment as to whether he has fielded any recent offers for his 5% stake in the company and why he needs ongoing LTI and STI grants to stay motivated when he already owns 33 million shares in the business?
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Q7. Thanks for disclosing the proxy results to the ASX with the formal addresses. It looks like a narrow strike with 29% against the rem report but the turn out is low. Please clarify which proxy advisers recommended against any of today's items, why there was a 15% vote against the chairman's re-election and whether you know if founder Kerr Neilson has voted or intends to vote in the room today.
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