The Underlying Fund or PAF primarily invests in the securities of Asian companies listed on stock exchanges around the world.

The Fund aims to provide capital growth over the long-term by providing exposure to undervalued listed investments in the Asian region excluding Japan.

Benefits of investing in PAXX

Investing in PAXX offers investors a range of benefits, including:

• Access to a manager with a proven investment philosophy and method for selecting undervalued stocks and a team of experienced investment professionals

• Exposure to an actively managed, diversified equity portfolio that seeks to minimise losses during market downturns using risk management techniques

• Actively managed currency exposures providing substantial diversification from the Australian dollar

• Annual distribution of the fund's net income, including net realised capital gains

• Ease of access through licensed brokers without lengthy paperwork and with no set minimum transaction amount

• Ability to buy and sell units at any time during ASX trading hours with the knowledge of real-time indicative NAV per unit before placing a trade

About the Fund

Quoted on the ASX and accessible through licensed brokers, PAXX provides a simple and convenient means for investors to gain exposure to an actively managed, diversified portfolio of Asian (ex-Japan) companies across industry sectors.

Investment philosophy

Platinum is an active manager focused on delivering long-term absolute returns (i.e. returns in absolute terms, rather than relative to any benchmark).

Platinum's investment philosophy is centred on the belief that there are times when events of a transitory nature may have a disproportionate effect on a company's share price, be they positive or negative, causing it to deviate from its inherent trend line. Such events, in Platinum's view, present potential investment opportunities, if one is able to differentiate between the companies that have a sound business case but are facing temporary set-backs, from those which have lesser potential or face fundamental problems.

Platinum's style of investment management is focused on seeking out-of-favour and overlooked parts of the market. Its core expertise is in identifying companies that have sound businesses and promising growth prospects but are temporarily out-of-favour with the market.

How we invest your money

The PAXX primarily invests in units of the Platinum Asia Fund ("PAF or "Underlying Fund) and some cash. The PAXX may also invest in exchange traded Derivatives and forward foreign exchange contracts for risk management purposes, albeit not to a material extent.

The Underlying Fund or PAF primarily invests in the securities of Asian companies listed on stock exchanges around the world. Asian companies may list their securities on securities exchanges other than those in Asia, and PAF may invest in those securities also. PAF may invest in companies not listed in Asia, but where their predominant business is conducted in Asia. It may also invest in companies that benefit from exposure to the Asian economic region.

Platinum defines "Asia as all countries that occupy the eastern part of the Eurasian landmass and its adjacent islands and is separated from Europe by the Ural Mountains, and includes the Russian Far East and companies based in China, Hong Kong, Taiwan, Korea, Malaysia, Singapore, India, Thailand, Indonesia, Philippines, Sri Lanka, Pakistan and Vietnam.

The Underlying Fund's Portfolio will ideally consist of 50 to 100 securities that Platinum believes to be undervalued by the market. PAF will also, from time to time, have exposure to cash when undervalued securities cannot be found. PAF may short sell securities that Platinum considers overvalued.

The Underlying Fund's Portfolio will typically have 50% or more net equity exposure and is constructed in accordance with Platinum's Investment Strategy' - refer to page 15 of the PDS.