Two Platypus funds upgraded to ‘Recommended’

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Research house Lonsec has upgraded the Platypus Australian Equities Fund and the Platypus Systematic Growth Fund to ‘Recommended’ ratings at its most recent review. 

According to the review report, “the ‘Recommended’ rating indicates that Lonsec has strong conviction the financial product can generate risk adjusted returns in line with relevant objectives. The financial product is considered an appropriate entry point to this asset class or strategy.”

Don Williams, chief investment officer at Platypus Asset Management, said the two funds have very distinct investment styles. However, both have an important role to play in meeting the needs of Australian equity market investors looking for returns generated by a well-structured and disciplined investment approach. 

“The Platypus Australian Equities Fund is a high conviction growth fund with a small cap bias, focusing on companies with strong earnings profiles. It aims to deliver strong returns over the medium to long-term, regardless of the performance of the broader Australian sharemarket. 

“The Platypus Systematic Growth Fund is a highly diversified, long only, ‘smart beta’ style fund. It adds value through a top-down portfolio construction process, rather than stock selection, and has a factor tilt towards high quality momentum in a risk controlled manner,” Mr Williams said.

Platypus Australian Equities Fund

In its review of the Platypus Australian Equities Fund, Lonsec said: “The Fund exhibits a well-structured investment approach which utilises a combination of top-down macroeconomic and bottom-up company analysis metrics.”

Lonsec considered Platypus to be a true to label growth manager, with an investment style distinct from its peers.

“Lonsec considers the Manager’s investment process to be logical and consistent with its investment philosophy. The investment process has been applied consistently since the inception of the Fund. 

“The investment objective of the Fund is to outperform the S&P/ASX 300 Accumulation Index by 4.0 per cent a year (before fees) over rolling three year periods. Pleasingly, this has been achieved over the three-year period assessed to October 2015. 

“Over the three years to October 2015 the Fund returned 14.31 per cent a year, outperforming both the Lonsec Sector Benchmark (S&P/ASX 300 Accumulation Index) on an after fee basis and the median manager in the Lonsec Growth Peer Group by 4.69 per cent a year and 2.26 per cent a year respectively.”

Platypus Systematic Growth Fund 

Lonsec described the Platypus Systematic Growth Fund as a “well-conceived quantitative momentum based strategy built entirely from Australian based research”.

Lonsec said it considers the Fund to be an attractive offering for investors seeking a diversified, low cost and benchmark unaware Australian equity product that is biased towards momentum and quality.

“The Fund is most akin to a ‘smart beta’ style product in that it offers a low cost access point to the market, and adds value through portfolio construction rather than stock selection. However, unlike the typical ‘smart beta’ strategy, Platypus Asset Management has the flexibility to take a zero weight in its least preferred stocks and will typically trade more frequently.

“The investment objective of the Fund is to outperform the S&P/ASX 300 Accumulation Index by 1.0 per cent a year (after fees) over an investment cycle with lower volatility.

“Over the three years to October 2015, the Fund has outperformed its outperformance objective. Over this period, the Fund returned 12.98 per cent a year, outperforming the benchmark by 3.36 per cent a year (after fees).”

Further, Lonsec noted the Fund has more consistently outperformed the benchmark in ‘down’ markets as opposed to ‘up’ markets, over all time periods assessed to September 2015. 

Platypus Asset Management is a specialist boutique investment manager founded in 1998. Its investment approach focuses on identifying high quality Australian companies with strong future growth prospects. The business formed a joint venture with Australian Unity in 2006. 

Past performance is not a reliable indicator of future performance. Australian Unity Funds Management Limited ABN 60 071 497 115, AFSL 234454 is the responsible entity for the Platypus Australian Equities Fund and the Platypus Systematic Growth Fund. These products are managed by Platypus Asset Management Pty Ltd ABN 33 118 016 087. The information in this document is general information only and does not take into account the financial objectives, situation or needs of any particular investor. Before deciding whether to acquire, hold or dispose of a product, an investor should refer to the relevant Product Disclosure Statement (PDS). A copy of the PDS can be obtained by calling 1800 649 033 or 13 29 39 or visiting 

The Lonsec Ratings (assigned as follows: Platypus Australian Equities Fund – November 2015; Platypus Systematic Growth Fund – November 2015) presented in this document are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Ratings are limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial products. Past performance information is for illustrative purposes only and is not indicative of future performance. They are not a recommendation to purchase, sell or hold Platypus Asset Management’s products, and you should seek independent financial advice before investing in these products. The Ratings are subject to change without notice and Lonsec assumes no obligation to update the relevant documents following publication. Lonsec receives a fee from the Fund Manager for researching the products using comprehensive and objective criteria.

For further information regarding Lonsec’s Ratings methodology, please refer to our website at:


For further information please contact: 

Don Williams
02 8270 8201