L1 GROUP LIMITED - Annual Report 2011

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Appendix 4E

Preliminary final report

Listing Rule 4.3A

Company

Platinum Asset Management Limited

ASX Code

PTM

Year Ended 30 June 2011 Previous corresponding period – Year Ended 30 June 2010 ABN 13 050 064 287

Results for Announcement to the market

Results for announcement to the market for the Platinum Asset Management Limited Consolidated Group are as follows :-

	%	$A’000
Total revenue	6.55%	264,619
Net profit after income tax	9.65%	150,059
Diluted EPS (cents per share)		26.32 cps

Dividends

*Dividends*
Dividend declared	15 cents per share fully franked
Record date	29 August 2011
Payable date	22 September 2011

A dividend of 10 cents per share fully franked was paid on 15 March 2011.

Refer to the attached audited financial statements for financial date on the Company and Consolidated Group.
These are available at http://www.platinum.com.au/images/ptm_0611.pdf
Refer to the attached for the Chairman’s Report and Managing Director’s Letter.

Dividend Reinvestment Plan

Whilst the Company has a Dividend Reinvestment Plan in place, it is not activated.

P Howard Company Secretary 18 August 2011

PLATINUM ASSET MANAGEMENT[® ] LIMITED ABN 13 050 064 287

ANNUAL REPORT

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Chairman's Report

Managing Director's Letter

Shareholder Information

Directors' Report

Auditor's Independence Declaration

Corporate Governance Statement

Statement of Comprehensive Income

Balance Sheet Statement of Changes in Equity

Statement of Cash Flows Notes to the Financial Statements

Directors' Declaration Independent Audit Report Directory

Chairman’s Report 2011

Performance

Against the back-drop of a challenging global economy and volatile investment markets, the Company’s profit performance for the financial year was a pleasing result.

Net profit after tax profit was $150.1 million (2010: $136.9 million), an increase of 9.6%.

The lift in profit can be primarily attributed to an increase in management fees of 9%. The increase in profits was largely driven by the average daily Funds Under Management (“FUM”) of the Platinum Trust Funds, which were up 10%.

Expenses incurred by Platinum continued to be closely monitored and increased by less than 2%.

Diluted earnings per share increased 12.8% to 26.32 cents compared to 23.33 cents in 2010.

Funds under Management (“FUM”)

The opening FUM for the year was $18.4 billion and rose to a high of $18.9 billion in January 2011 before falling to $17.8 billion at 30 June 2011. The FUM growth remained volatile throughout the year.

The major contributor to the decrease in the closing FUM over the period was a decline in investment performance of approximately $1.1 billion notwithstanding positive net inflows of $0.7 billion less income distributions to investors of $0.2 billion. The high Australian dollar, which appreciated by 27% over the course of the year, adversely impacted the FUM levels and investment returns.

Whilst the investment performance was disappointing over the past year, clients’ long-term investment returns and performance remain strong. The Managing Director’s letter details the returns and movement in FUM.

Dividend

A fully franked dividend of 15 cents per share will be paid on 22 September 2011. The dividend payout is broadly in line with the Dividend Policy (of paying out 80-90% of net profit after tax) and consistent with our working capital needs.

A fully franked dividend of 10 cents per share was paid on 15 March 2011.

The Directors are confident that future dividends will be fully franked.

Whilst the Company has a Dividend Reinvestment Plan in place, it is has not been activated or likely to be activated in the near term.

The Board and its Committees

Both the Remuneration and Audit Committees had a productive year dealing with a number of material issues that impact the Company’s performance.

Mr Malcolm Halstead retired as Finance Director and Company Secretary during the year and was replaced by Mr Philip Howard. Malcolm had held these positions since the Company’s listing in 2007 and was a key member of the initial management team that established Platinum.

On behalf of the Board and our shareholders, we would like to thank Malcolm for his outstanding service. His contribution to the Company’s development is immeasurable and we are fortunate that he has chosen to continue to contribute to the Company as a consultant.

Environment

Your Company remains carbon neutral, having purchased carbon credits to offset its carbon emissions.

Conclusion

The current extreme volatility in global investment markets and the competitive landscape makes it difficult to forecast what will happen to investment fees and profits in the next year. The interests of our shareholders continue to be best served by us maintaining a focus on delivering the best performance outcomes for our investors.

Michael Cole Chairman

Managing Director’s Letter to Shareholders

Investment Performance

This last financial year proved more testing than we would like to remember. Some of our Funds performed well but the bulk, as global mandates and including the Platinum International Fund, lost money in terms of the rampaging Australian dollar. (Our US dollar global mandates fared better in terms of their home currency).

This poor performance can be attributed to our adopting a very cautious investment stance. This was guided by the inherent belief that there can be no quick fixes to the world’s economic problems and that market gyrations will be accompanied by a gradual deterioration of the valuation attributed to risk assets.

We therefore ran the main portfolios with large exposures to defensive companies and with a high level of short sales and, as importantly, hedged very little back into the Australian dollar. In the face of quantitative easing, this was precisely the wrong way around as investors clambered over defensives to load-up on growth-sensitives and their derivative currencies like the Australian dollar. As the quintessential play on Asia, and particularly Chinese economic growth, the Australian dollar appreciated by some 27% against the US dollar over the year and by 20% against the currencies of the basket of principal global share markets. (We could, in all likelihood, make this currency error again as it is our belief that most of our clients choose to invest in global funds to partially gain access to foreign currencies. Consequently, we tend to hedge back into the home currencies of mandates only when those currencies are below their longer term inherent value. This we did when the Australian dollar was trading between 65 to 85 cents versus the US dollar back in 2008-09).

The Business

Last year we reported on the development of platforms, the review of the superannuation system and the proposed reform of regulations relating to financial advisor commissions (see the FOFA summary of these changes below).

Future of Financial Advice (FOFA) 2011 Summary

FOFA Measure	Description
Ban on conflicted remuneration	Ban on conflicted remuneration structures including commissions and volume- based payments
Compulsory renewal (opt-in)	Requirement for advisers to renew client agreements to ongoing advice fees every two years
Bestinterests duty	Requirementforadvisers to actinthe bestinterests oftheirclients
Banonsoft dollarbenefits	Banonsoft dollarbenefits over$300 perbenefit
Basic banking products carve-out	Relief from best interests duty and ban on conflicted remuneration where employees of Authorised Deposit-taking Institutions (ADIs) are selling their employer’s basic banking products

Source: Australian Government, Future of Financial Advice, Information Pack, 28 April 2011

This has developed further in the last 12 months with a growing tendency for advisory groups to initiate their own platforms. With the availability of ready-made software, there are an increasing number of advisors who are tending to bring their record-keeping systems in-house. Apart from the cost savings, the changes in the rules regarding commissions (as outlined above) have significantly influenced this trend.

Fortunately for Platinum Asset Management, we have assiduously avoided the promotion of our products via any form of financial inducement being paid to advisors or advisory groups. Instead, we have relied on developing a professional and open relationship with financial planners where we try to explain the features of our products and our views about the investment opportunities in a full and frank manner. We also offer the services of our investment team to brief advisors and their clients at seminars. This is well-received as the speaker can deliver the message with authority and in addition, answer the audience questions and address sublimated concerns.[1]

1 It is perhaps worth noting that at times our message may not sit comfortably with parts of the audience on account of our contrarian bias but also perhaps, the audience’s own confirmatory bias. There can be a temptation to pander to what the audience would like to hear rather than what we, rightly or wrongly, believe to be the misconception of the moment. This is another way of saying that the psychological behavioural biases that were the cornerstone of the classic work “ Judgment Under Uncertainty: Heuristics and Biases ” by Tversky and Kahneman, 1974, are as deeply rooted in our behaviour as ever.

In addition, we can, and do, supply advisors with a data feed that allows them to directly update their client portfolios for transactions, and with daily unit prices. Unfortunately, there are still limitations to our ability to transact fully on-line on account of issues relating to identification and security.

The Team

Though it may not show in the performance of all of the Funds, the team is developing well. For some time now we have replaced the individual analyst’s so-called ‘shadow’ portfolio with real money portfolios where experienced analysts are able to reveal their stock-picking ability by maintaining a portfolio of eight names. The idea here is for the individual to select a portfolio from within their area of competence uninhibited by the views or timing of other team members. Prior to introducing a new stock (and discarding an existing position), it is obligatory, however, for the analyst to first call a stock meeting at which the idea can be subjected to thorough discussion and peer review. It is not required for the group to necessarily endorse the idea but so long at it has been formally written-up and reviewed, the analyst is free to act at their volition. The performance of this small portfolio, together with the stocks attributed to that analyst within the main portfolios, will significantly influence the outcome of their bonus.

Should an analyst display a systematic ability to perform strongly, they will advance to managing larger pools of money. It is by this means that we gradually bring talent through the organisation. It is not always the case that a good analyst makes a good fund manager and for this reason we are reluctant to necessarily reward those with timing skills above those who can spot or originate clever investment ideas. Analysts with proven ability to do both are now managing a meaningful component of the International Fund and the Asia Fund.

As the investment team has grown, the depth of coverage has increased and to enhance the exchange of knowledge and understanding of related industries we have clustered analysts in related industries (pods) while still having individuals who keep watch over the principal geographic regions. Working closely with the quant team, who have developed valuable screening tools, these pods are in the position to react with more certainty to market changes.

Costs

Costs have moved up as we anticipated, but only by a small margin. Performance-related bonuses and advancing seniority being the major contributors. As we have stated previously, the performance bonus is constructed to be self-funding.

Profits

Success in signing up profit sharing investment accounts has continued to build our performance fee potential. As you can see, this proportion of our funds under management has risen to $1.8 billion. Our traditional retail base has largely remained loyal, despite the drop-off in some of the Funds’ performance.

Fund Under Management ($mn, to 30 June 2011)

Fund	Opening Balance (30 June 2010)	Flows	Distribution	Investment Performance	Closing Balance (30 June 2011)
Platinum TrustFunds	13,816	289	(195)	(868)	13,042
MLCPlatinumGlobal Fund	1,511	(259)	-	(13)	1,239
ManagementFeeMandates	1,518	292	-	(84)	1,726
“Relative” Performance Fee Mandates	908	431	-	(62)	1,277
“Absolute” Performance Fee Mandates	610	(36)	-	(43)	531
TOTAL	18,363	717	(195)	(1,070)	17,815
Source: Platinum

With performance fees there is a trade-off: the modest flat fee is complemented by a performance component that will share in the degree to which we are able to outperform the benchmark (MSCI). For these fees to give us a yield equivalent to the standard flat fee, Platinum needs to outperform by approximately 5%. Our historic outperformance over the last 16 years has averaged approximately 9% per annum compound with great variances in between. Do note that this change in the blend of our fee base will introduce lumpiness in our profits. In a good year the upside can be very exciting and vice versa.

Outlook

As described in our quarterly reports to our investors, it is evident that there is a plethora of issues facing the world economy. With this in mind, creating real value will be unusually challenging. Assisting us though is a maturing team of investment experts and a growing interest among professional investors in our products. As Platinum is an active manager, we are forced to have strong views about the absolute value of companies (investments). This adds to our professional burden, as we need from time to time to diverge from the pack. This can add to the risks of the business, but to the extent that our judgement prevails, the rewards can be spectacular!

Kerr Neilson Managing Director

SHAREHOLDER INFORMATION

Substantial Shareholders

The following parties notified the Company that they have a substantial relevant interest in ordinary shares of Platinum Asset Management Limited as at 16 August 2011:

Number of Shares J Neilson, K Neilson 323,074,841 J Clifford, Moya Pty Limited, A Clifford 32,831,449 Hyperion Asset Management 34,585,347 Distribution of Securities Class (i) Distribution schedule of holdings 1-1000 1,001 - 5,000 5,001 - 10,000 10,001-100,000 100,001 and over Total number of holders (ii) Number of holders of less than a marketable parcel (iii) Percentage held by the 20 largest holders	% 57.55 5.85 6.16 of equity security Ordinary 4,549 12,423 2,658 1,389 61
	21,080
	229
	83.24%

Twenty Largest Shareholders

The names of the 20 largest holders of each class of listed equity securities as at 16 August 2011 are listed below:

	Number of
	Shares	%
Platinum Investment Management Limited	216,684,999	38.60
J Neilson	136,250,000	24.27
JP Morgan Nominees Australia Limited	19,717,645	3.51
Citicorp Nominees Pty Limited	17,287,900	3.08
National Nominees Limited	14,321,975	2.55
Charmfair Pty Limited	10,000,000	1.78
Jilliby Pty Limited	10,000,000	1.78
HSBC Custody Nominees (Australia) Limited	9,243,526	1.65
Cogent Nominees Pty Limited	7,734,822	1.38
Charmfair Pty Limited	6,938,475	1.24
J Clifford	5,000,000	0.89
Xetrov Pty Limited	4,000,000	0.71
Citicorp Nominees Pty Limited	2,574,273	0.46
JP Morgan Nominees Australia Limited	2,092,471	0.37
Citicorp Nominees Pty Limited	1,815,080	0.32
Warbont Nominees Pty Limited	899,291	0.16
AMP Life Limited	889,323	0.16
Queensland Investment Corporation	885,082	0.16
S Gilchrist	479,651	0.09
Smallco Investment Manager Limited	472,501	0.08

Voting Rights

Ordinary Shares

On a show of hands, every member present in person or represented by a proxy or representative shall have one vote and, on a poll, every member present in person or represented by a proxy or representative shall have one vote for every share held by them.

Platinum's Commitment to Carbon Neutrality

Platinum Asset Management remains carbon neutral, having purchased carbon credits to offset its carbon emissions.

Distribution of Annual Report to Shareholders

The Law allows for an "opt in" regime through which shareholders will receive a printed "hard copy" version of the Annual Report only if they request one. The Directors have decided to only mail out an Annual Report to those shareholders who have "opted in".

Questions for the AGM

If you would like to submit a question prior to the AGM to be addressed at the AGM, you may e-mail your question to [email protected].

Financial Calendar

Ordinary shares trade ex-dividend 23 August 2011 Record (books close) date for dividend 29 August 2011 Dividend paid 22 September 2011 Annual General Meeting 3 November 2011

These dates are indicative and may be changed

DIRECTORS' REPORT

The Directors present the following report on the consolidated entity consisting of Platinum Asset Management Limited (the "Company") and the entities it controlled at the end of, or during, the year ended 30 June 2011.

Directors

The following persons were Directors of the Company during the financial year and up to the date of this report:

Michael Cole Chairman and Non-Executive Director Bruce Coleman Non-Executive Director Margaret Towers Non-Executive Director Kerr Neilson Managing Director Philip Howard Director and Company Secretary (since 31 March 2011)

Malcolm Halstead was a Director and Company Secretary until his retirement on 31 March 2011.

Principal Activity

The Company is the non-operating holding company of Platinum Investment Management Limited. Platinum Investment Management Limited, trading as Platinum Asset Management, operates a funds management business.

Trading Results

The profit after tax of the consolidated entity for the year was $150,059,000 (2010: $136,852,000) after income tax expense of $63,697,000 (2010: $61,540,000).

Dividends

Since the end of the financial year, the Directors have declared a 15 cents per share ($84,202,000) fully franked dividend payable to shareholders on 22 September 2011.

A fully franked dividend of 10 cents per share ($56,135,000) was paid on 15 March 2011.

A fully franked dividend of 14 cents per share ($78,589,000) was paid on 22 September 2010.

Review of Operations

The consolidated profit before tax was $213,756,000 (2010: $198,392,000).

Changes in the State of Affairs

There were no significant changes in the state of affairs of the Company that occurred during the year not otherwise disclosed in this report or the financial statements.

Events Subsequent to the End of the Financial Year

Since the end of the financial year, the Directors are not aware of any matter or circumstance, not otherwise dealt with in this report or financial statements, that has significantly or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in subsequent financial periods.

Likely Developments and Expected Results of Operations

The Company continues to pursue its business objectives, by continuing to be the holding company of the Platinum Asset Management funds management business. The methods of operating the consolidated entity are not expected to change in the foreseeable future.

Rounding of Amounts

The consolidated entity is of a kind referred to in the Australian Securities & Investments Commission's Class Order 98/0100 (as amended) and consequently amounts in the Directors' Report and financial statements have been rounded to the nearest thousand dollars in accordance with that Class Order, unless otherwise indicated.

Environmental Regulation

The consolidated entity is not adversely impacted by any particular or significant environmental regulations under a Commonwealth, State or Territory Law.

Auditor

PricewaterhouseCoopers continues in office in accordance with section 327 of the Corporations Act 2001.

DIRECTORS' REPORT continued

Non-Audit Services

The Directors, in accordance with advice received from the Audit Committee, are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied, considering the nature and quantum of the non-audit services, that the provision of non-audit services by the Auditor, did not compromise the auditor independence requirements of the Corporations Act 2001.

Details of the amounts paid or payable to the Auditor (PricewaterhouseCoopers) for audit and non-audit services provided during the year are set out below.	Details of the amounts paid or payable to the Auditor (PricewaterhouseCoopers) for audit and non-audit services provided during the year are set out below.	Details of the amounts paid or payable to the Auditor (PricewaterhouseCoopers) for audit and non-audit services provided during the year are set out below.
	2011	2010
	$	$
Audit services - statutory	254,865	271,775
Taxation services - compliance	474,413	466,100
Taxation services - foreign tax agent	26,525	18,149
Other audit and assurance services	23,828	31,174
Advisory services - restructuring and related costs*	18,651	227,265
Total	798,282	1,014,463

*For 2011 (and 2010), the advisory services provided by PricewaterhouseCoopers predominantly related to legal work associated with the payment of stamp duty, arising from the restructure of the Company, prior to the offer of shares to the public in the 2007 IPO.

Auditor's Independence Declaration

A copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 7.

Information on Directors

Michael Cole BEcon, MEcon, FFin

Independent Non-Executive Director, Chairman and member of the Audit and Remuneration Committees since 10 April 2007. (Age 63) Mr Cole has over 33 years experience in the investment banking and funds management industry. He was an Executive Director/Executive Vice President at Bankers Trust Australia for over 10 years. Mr Cole is Chairman of Ironbark Capital Limited and IMB Limited. Mr Cole is the Chairman and Director of Challenger Listed Investments Limited.

Bruce Coleman BSc, BCom, CA, FFin

Independent Non-Executive Director, Chair of the Remuneration Committee and member of the Audit Committee since 10 April 2007. (Age 61) Mr Coleman has worked in the finance and investment industry since 1986. He was the CEO of MLC Investment Management from 1996 to 2004. He has held various directorships within MLC Limited, Lend Lease and National Australia Banking groups. Mr Coleman is a Director of Platinum Capital Limited.

Margaret Towers CA, GAICD

Independent Non-Executive Director, Chair of the Audit Committee and member of the Remuneration Committee since 10 April 2007. (Age 53) Ms Towers is a Chartered Accountant with over 29 years experience in financial markets. She was formerly an Executive Vice President at Bankers Trust Australia and worked at Price Waterhouse. Ms Towers currently acts as an independent consultant to a number of Australian Financial Institutions. In May 2011, Ms Towers was appointed a Director of IMB Limited.

Kerr Neilson BCom, ASIP

Managing Director since 12 July 1993. (Age 61)

Mr Neilson was appointed as Managing Director upon incorporation. He is the Managing Director of Platinum Investment Management Limited and Platinum Capital Limited. Prior to Platinum, Mr Neilson was an Executive Vice President at Bankers Trust Australia. Previously he worked in both the UK and South Africa as an investment analyst and fund manager.

Philip Howard BCom , CA

Finance Director and Company Secretary since 31 March 2011. (Age 50)

Mr Howard was also appointed Director of Platinum Investment Management Limited and Platinum Capital Limited on 31 March 2011. Mr Howard has been Platinum's Chief Operating Officer since his appointment to that role on 19 September 2001. Mr Howard is a Chartered Accountant with over 25 years experience in the financial services industry. Prior to Platinum, Mr Howard has held senior roles in finance, operations and management with State Street Australia, Bankers Trust Australia and Price Waterhouse, Sydney.

Directors' Meetings

The number of meetings held and attended by the Company's Directors during the year ended 30 June 2011 was as follows.

	Board	Meetings	Audit Committee Meetings	Audit Committee Meetings	Remuneration Committee Meetings	Remuneration Committee Meetings
	Held	Attended	Held	Attended	Held	Attended
Name	while a Director		while a member		while a member
M Cole	5	5	4	4	3	3
B Coleman	5	5	4	4	3	3
M Towers	5	5	4	4	3	3
K Neilson	5	4	-	-	-	-
P Howard (from 31 March 2011)	2	2	-	-	-	-
M Halstead(until 31 March 2011)	3	3	-	-	-	-

DIRECTORS' REPORT continued

Remuneration Report (audited)

Principles used to determine the nature and amount of remuneration

The Executive Directors review annually the remuneration of the Non-Executive Directors and may utilise the services of external advisors. It is the policy of the Board to remunerate at market rates commensurate with the responsibilities borne by the Non-Executive Directors. The remuneration of the Directors is not linked to the performance or earnings of the Company or consolidated entity.

Directors' fees

Non-Executive Directors' base remuneration is reviewed annually.

Retirement benefits for Directors

No retirement benefits (other than mandatory superannuation) are provided to Directors.

Other benefits (including termination) and incentives

No other benefits and incentives (other than those disclosed below) are paid to Directors.

Details of remuneration

Non-Executive Directors

All remuneration of the Non-Executive Directors is paid by Platinum Investment Management Limited. The Non-Executive Directors received the following amounts during the financial year.

Name M Cole B Coleman M Towers Total remuneration	Short-term Benefits Post-employment Total Salary Benefits Superannuation $ $ $ 200,000 15,199 215,199 175,000 15,199 190,199 175,000 15,199 190,199
	550,000 45,597 595,597

Base salary paid to the Non-Executive Directors remains unchanged from the prior year.

Executive Directors

AASB 124: Related Party Disclosures defines key management personnel as “persons having authority and responsibility for planning, directing and controlling activities of the entity”. The only employees who have this authority and responsibility are the Directors of Platinum Asset Management Limited and Platinum Investment Management Limited.

Other than those disclosed below, there are no employees who hold an executive position within the Company.

Key management personnel compensation

The Executive Directors (K Neilson and P Howard) are employed by Platinum Investment Management Limited and receive their remuneration from Platinum Investment Management Limited. M Halstead was employed by Platinum Investment Management Limited until his retirement on 31 March 2011.

AASB 124 requires compensation provided by the Company or on behalf of the Company to be disclosed.

A portion of the compensation paid by Platinum Investment Management Limited to its employees is in relation to managing the affairs of the Company. Platinum Investment Management Limited has not made any determination as to what proportion of its compensation relates to the Company. Platinum Investment Management Limited paid: K Neilson a salary of $400,000 (2010: $364,468) and superannuation of $15,199 (2010: $49,993), P Howard a salary of $100,000, a bonus of $257,500 and superannuation of $3,800 from the date of his appointment to the Board on 31 March 2011 to 30 June 2011 and M Halstead a salary of $236,400 (2010: $314,468) and superannuation of $11,399 (2010; $49,993) until the date of his retirement from the Board on 31 March 2011. In addition, M Halstead received a payment of $118,226 representing accrued annual leave of $24,941 and accrued long service leave of $93,285.

For the full financial year, A Clifford was a Director of the operating subsidiary, Platinum Investment Management Limited. A Clifford was paid a salary of $350,000 (2010: $339,464), a bonus of $177,000 (2010: $630,000) and superannuation of $15,199 (2010: $24,997).

P Howard and A Clifford received share-based compensation as disclosed in the Directors' Report on page 6.

Platinum Investment Management Limited provided for an increase in long service leave as follows: K Neilson $8,012 (2010: $7,258), P Howard $31,742 and A Clifford $5,725 (2010: $7,216) and provided for an increase/(decrease)

in annual leave as follows: K Neilson ($6,130) (2010: ($13,793)), P Howard $12,014 and A Clifford ($10,728) (2010: ($$4,023)).

DIRECTORS' REPORT continued

Relevant interests of Non-Executive and Executive Directors in shares

The relevant interest in ordinary shares of the Company that each Director has at balance date is as follows:

*Name*	Balance	Acquisitions	Disposals	Balance
	1-Jul-10			30-Jun-11
M Cole	300,000	-	-	300,000
B Coleman	200,000	-	-	200,000
M Towers	20,000	-	-	20,000
K Neilson	322,074,841	-	-	322,074,841
P Howard (appointed 31 March 2011)	104,281	-	-	104,281

Share-based compensation

On 22 May 2007, P Howard was granted 841,500 options. These options were granted at a strike price of $5. The options vested on 22 May 2011 and have a two year exercise period. At the date of this report, no options have been exercised. The assessed fair value of options granted on 22 May 2007 was $0.82 per option.

The share-based payments expense relating to this grant to P Howard was $153,235 (2010: $172,066).

On 17 June 2009, P Howard was granted 856,898 options and A Clifford was granted 3,844,350 options. These options were granted at a strike price of $4.50. The options vest on 17 June 2013 and have a further two year exercise period. The assessed fair value of options granted on 17 June 2009 was $1.14 per option.

The share-based payments expense relating to this grant to P Howard was $243,359 (2010: $243,359). The share-based payments expense relating to this grant to A Clifford was $1,091,795 (2010: $1,091,795).

No options were granted to any Director during the 2011 year.

Other than what is disclosed above, no Executive or Non-Executive Director of the Company has ever received options or performance rights in the Company.

Service agreements

Remuneration and other terms of employment for the Non-Executive Directors are formalised in service agreements. The Executive Directors do not have service agreements, as they are employees of the Investment Manager, Platinum Investment Management Limited.

M Cole, Chairman and Non-Executive Director

Agreement has no termination date. Tenure is subject to approval by shareholders at every third AGM.
Base annual salary, inclusive of superannuation is $215,199.

B Coleman, Non-Executive Director

Agreement has no termination date. Tenure is subject to approval by shareholders at every third AGM.
Base annual salary, inclusive of superannuation is $190,199.

M Towers, Non-Executive Director

Agreement has no termination date. Tenure is subject to approval by shareholders at every third AGM.
Base annual salary, inclusive of superannuation is $190,199.

Directors' Interests in Contracts

The Directors receive remuneration and dividends that are ultimately derived from the net income arising from Platinum Investment Management Limited's investment management contracts.

Directors' Insurance

During the year, Platinum Investment Management Limited incurred a premium in respect of a contract for indemnity insurance for the Directors and Officers of the Company named in this report.

This report is made in accordance with a resolution of the Directors.

Michael Cole Chairman

Kerr Neilson Director

Sydney 18 August 2011

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Auditor’s Independen c e Declaration

As lead auditor for the au d it of Platinum Asset Management Limited and its controlled entities for the year ended 30 June 2011, I declare that to the best of my knowledge and b elief, there have been:

a) no contraventions of t h e auditor independence requirements of the Co r porations Act 2001 in relation to the audit; a n d
b) no contraventions of a ny applicable code of professional conduct in rel a tion to the audit .

This declaration is in resp e ct of Platinum Asset Management Limited and it s controlled entities during the period.

AJ Loveridge Partner PricewaterhouseCoopers

Sydney 18 August 2011

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 S u ssex Street, GPO BOX 2650, SYDNEY NSW 1171 DX 77 Sydney, Australia T +61 2 8266 0000, F +61 2 8 266 9999, www.pwc.com.au

Liability limited by a scheme appro v ed under Professional Standards Legislation.

CORPORATE GOVERNANCE STATEMENT

This Corporate Governance Statement provides a summary of the main corporate governance practices adopted by the Board and exercised throughout the year for the Company.

The Company has followed the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations (“Governance Principles”), except where indicated.

Company policies, charters and codes referred to in this Statement are provided in the 'Shareholder Corporate Governance' section of the Company's website at www.platinum.com.au (“Company’s website”).

The Company and its controlled entities together are referred to as "the Group" in this Statement.

1. The Board of Directors

Members: M Cole (Chair), B Coleman, M Towers, K Neilson and P Howard.

Changes to the Board since last report:

Malcolm Halstead retired 31 March 2011
Philip Howard appointed 31 March 2011

The Board has adopted a Charter, that details the functions and responsibilities of the Board.

1.1 Role of the Board

The role of the Board is to oversee the activities of the Executive Directors, ensuring the Company operates in compliance with its regulatory environment and good corporate governance practices are adopted.

1.2 Responsibilities of the Board

The principal responsibilities of the Board include:

. considering and approving the strategy of the Company;

. monitoring the performance and financial position of the Company;

. overseeing the integrity of the Group's financial accounts and reporting; . assessing the performance of Management and itself;

. reviewing the operations and findings of the Company’s risk management, compliance and control frameworks; and . monitoring the Company’s compliance with regulatory, legal and ethical standards.

1.3 Structure of the Board

The Board currently comprises five Directors: three Non-Executive Directors (M Cole, B Coleman and M Towers) and two Executive Directors (K Neilson and P Howard).

Details on the background, experience and professional skills of each Director are set out in the Directors' Report on page 4.

The Chair of the Board is an independent Director and the roles of Chair and Managing Director (Chief Executive Officer) are not exercised by the same individual.

The Chair is responsible for leading the Board, ensuring that the Board's activities are organised and efficiently conducted and ensuring Directors are properly briefed for meetings.

The Managing Director is responsible for the management and operation of the Company. Those powers not specifically reserved to the Board under its Charter, and which are required for the management and operation of the Company, are conferred on the Managing Director.

1.4 Director Independence

The Non-Executive Directors of the Company have been assessed as independent. In reaching its decision, the Board has taken into account the factors outlined below.

The Board regularly assesses the independence of each Director. For this purpose an Independent Director is a Non-Executive Director that the Board considers to be independent of Management and free of any business or other relationship that could materially interfere with, or could reasonably be perceived to interfere with, the exercise of unfettered and independent judgement.

Directors must disclose any person or family contract or relationship in accordance with the Corporations Act 2001 . Directors also adhere to constraints on their participation and voting in relation to matters in which they may have an interest in accordance with the Corporations Act 2001 and the Company's policies.

Each Director may from time to time have personal dealings with the Company. Each Director is involved with other companies or professional firms that may from time to time have dealings with the Company.

Details of offices held by Directors with other organisations are set out in the Directors' Report on page 4. Full details of related party dealings are set out in the notes to the Company's accounts as required by law.

In assessing whether Directors are independent, the Board takes into account (in addition to the matters set out above): . the specific disclosures made by each Director as referred to above;

. where applicable, the related party dealings referrable to each Director, noting whether those dealings are 'material';

. whether a Director is (or is associated directly with) a substantial shareholder of the Company;

. whether the Director has ever been employed by the Group;

. whether the Director is (or is associated with) a 'material' professional adviser, consultant, supplier, or customer of, the Group; and . whether the Director personally carries on any role for the Group other than as a Director of the Company.

The Board also has regard to the matters set out in the Governance Principles. The Board does not consider that a term of service on the Board should be considered as a factor affecting a Director's ability to act in the best interests of the Company.

If a Director's independent status changes, this will be disclosed and explained to the market in a timely manner and in consideration of the Company's Communications Plan.

CORPORATE GOVERNANCE STATEMENT continued

Materiality

The Board determines 'materiality' on both a quantitative and qualitative basis. An item that affects the Company's net assets by approximately 5% or affects the Company's distributable income in a forecast period by more than approximately 5% of the Company's net profit before tax is likely to be material. These quantitative measures, however, must be supplemented with a qualitative examination. The facts (at the time) and the context in which the item arises will influence the determination of materiality.

1.5 Selection and Appointment of Directors

Recommendation 2.4 of the Governance Principles provides that "[t]he Board should establish a nomination committee". Given the size of the Company and the Board, the Board considers a nomination committee is not warranted. The full Board considers the issues that would otherwise be a function of a nomination committee.

When evaluating, selecting and appointing Directors, the Board considers: . the candidate’s competencies, qualifications and expertise and his/her fit with the current membership of the Board; . the candidate’s knowledge of the industry in which the Company operates; . directorships previously held by the candidate and his/her current commitments to other boards and companies; . existing and previous relationships with the Company and Directors; . the candidate’s independence status and the need for a majority or equal balance on the Board; and . requirements of the Corporations Act 2001 , ASX Listing Rules, the Company’s Constitution and Board Policy. The Board seeks to ensure that: . its membership represents an appropriate balance between Directors with investment management experience and Directors with an alternative perspective; and . the size of the Board is conducive to effective discussion and efficient decision-making. Under the terms of the Company’s Constitution: . an election of Directors must be held at each Annual General Meeting and at least one Director (but not the Managing Director) must retire from office; and . each Director (but not the Managing Director) must retire from office at the third Annual General Meeting following his/her last election. Where eligible, a Director may stand for re-election.

1.6 Access to Information and Independent Advice All Directors have unrestricted access to records and information of the Group.

Non-Executive Directors regularly receive updates and reports from Management.

The Board of Directors’ Charter provides that the Directors may (in connection with their duties and responsibilities) seek independent professional advice at the Company’s expense, after first notifying the Board. The Board will review the estimated costs for reasonableness, but will not impede the seeking of advice.

1.7 Performance Assessment The Board of Directors’ Charter requires: . the Board to review its performance (at least annually) against previously agreed measurable and qualitative indicators; . the Chair of the Board to review each Director’s performance; . a nominated Director to review the Chair’s performance; and . the Board to undertake a formal annual review of its overall effectiveness, including its Committees. These assessments were undertaken.

As a result of these assessments, the Board may implement changes to improve the effectiveness of the Board and corporate governance structures.

2. Board Committees

The Board has established a number of committees to assist in the execution of its duties and (from time to time) to deal with matters of special importance. Each Committee operates under an approved Charter.

2.1 Audit Committee

Members: M Towers (Chair), M Cole, and B Coleman.

The purpose of the Committee is to assist the Board in fulfilling its responsibilities relating to the financial reporting and accounting practices of the Company. Its key responsibilities are to:

. review the financial information presented by Management;

. consider the adequacy and effectiveness of the Company’s administrative, operating and accounting controls as a means of ensuring the Company's affairs are being conducted by Management in compliance with legal, regulatory and policy requirements; . review any significant compliance issues affecting the Company and monitor actions taken by Management; . review recommendations from the Finance Director and/or external Auditor on key financial and accounting principles to be adopted by the Company; and . recommend to the Board the appointment of external auditors and monitor the conduct of audits.

All members of the Committee are independent Non-Executive Directors.

The Audit Committee has authority (within the scope of its responsibilities) to seek any information it requires from any Group employee or external party. Members may also meet with auditors (internal and/or external) without Management present, and consult independent experts where the Committee considers it necessary to carry out its duties.

All matters determined by the Committee are submitted to the full Board as recommendations for Board decisions. Minutes of a Committee meeting are tabled at the subsequent Board meeting. Additional requirements for specific reporting by the Committee to the Board are addressed in the Charter.

Attendance at Committee meetings is provided in the Directors' Report on page 4.

CORPORATE GOVERNANCE STATEMENT continued

2.2 Remuneration Committee

Members: B Coleman (Chair), M Cole, and M Towers.

The Committee advises the Board on remuneration and incentive policies and practices generally and makes specific recommendations on remuneration packages and other terms of employment for Executive Directors, other Senior Executives and Non-Executive Directors.

Members of the Remuneration Committee have access to the Company's officers and advisers and may consult independent experts where the Committee considers it necessary to carry out its duties.

Attendance at Remuneration Committee meetings is provided in the Directors' Report on page 4.

Remuneration Policies

Remuneration for the Executive Directors consists of salary, bonuses or other elements. Any equity-based remuneration for Executive Directors will be subject to shareholder approval where required by law or ASX Listing Rules.

Remuneration for Non-Executive Directors must not exceed in aggregate a maximum sum that shareholders fix in general meeting. The current maximum aggregate amount fixed by shareholders is $2 million per annum (including superannuation contributions). This amount was fixed by shareholders at the 10 April 2007 general meeting.

Executive and Non-Executive Directors may also be reimbursed for their expenses properly incurred as Directors. Further information is provided in the Remuneration Report.

Remuneration Paid

Remuneration paid to the Executive and Non-Executive Directors for the 2010/2011 reporting year is set out in the Directors' Report on pages 5 to 6.

3. Company Auditors

The policy of the Board is to appoint an Auditor that clearly demonstrates competence and independence.

The performance of the Auditor is reviewed annually and applications for tender of external audit services are requested as deemed appropriate, taking into consideration assessment of performance, existing value and tender costs.

PricewaterhouseCoopers was appointed as Auditor in 2007. It is PricewaterhouseCoopers' policy to rotate audit engagement partners on listed companies at least every five years.

An analysis of fees paid to the Auditor, including a break-down of fees for non-audit services, is provided in the Directors’ Report. It is the policy of the Auditor to provide an annual declaration of its independence to the Audit Committee.

The Auditor is required to attend the Company’s Annual General Meeting and be available to answer shareholder questions about the conduct of the audit and the preparation and content of the Auditor's Report.

4. Company Policies

4.1 Directors’ Code of Conduct

The Board has adopted a Directors' Code of Conduct which is based upon the Australian Institute of Company Directors' Code of Conduct. It requires the Directors to act honestly, in good faith, and in the best interests of the Company as a whole, whilst in accordance with the letter (and spirit) of the law.

4.2 Trading in Company Securities

All Directors and staff of the Group must comply with the Company's Share Trading Policy. In summary, the policy prohibits trading in the Company securities:

. when aware of unpublished price-sensitive information;

. from the first day of the month until announcement of the Company’s monthly funds under management figure to the ASX;

. from 1 January (each year) until announcement of the Company’s half-yearly financial results to the ASX;

. from 1 July (each year) until announcement of the Company’s annual financial results to the ASX; and

. during any other black-out period (as notified).

Directors and staff are prohibited from entering into transactions in associated products that operate to limit the economic risk of holding PTM shares over unvested entitlements.

4.3 Financial Reporting

In respect of the year ended 30 June 2011, the Managing Director and Finance Director have made the following certifications to the Board:

. The Company’s financial reports are complete and present a true and fair view, in all material respects, of the financial condition and operational results of the Company and the Group and are in accordance with relevant Accounting Standards.

. The above statement is founded on a sound system of risk management and internal compliance and control that implements the policies adopted by the Board and that the Company’s risk management and internal compliance and control system is operating efficiently and effectively in all material respects.

CORPORATE GOVERNANCE STATEMENT continued

4.4 Continuous Disclosure

The Board is committed to:

. the promotion of investor confidence by ensuring that trading in Company shares takes place in an efficient, competitive and informed market; . complying with the Company’s disclosure obligations under the ASX Listing Rules and the Corporations Act 2001 ; and . ensuring the Company's stakeholders have the opportunity to access externally available information issued by the Company. The Company Secretary is responsible for coordinating the disclosure of information to Regulators and shareholders and ensuring that any notifications/reports to the ASX are promptly posted on the Company’s website.

4.5 Shareholder Communication

The Board has adopted a Communications Plan that describes the Board’s policy for ensuring that shareholders and potential investors of the Company receive or obtain access to information publicly released by the Company. The Company’s primary portals are its website, Annual Report, Annual General Meeting, Half-Yearly Financial Report and monthly notices to the ASX.

The Company Secretary oversees and coordinates the distribution of all information by the Company to the ASX, shareholders, the media and the public.

4.6 Risk Management and Compliance

The Board, through the Audit Committee, is responsible for ensuring that:

. there are effective systems in place to identify, assess, monitor and manage the risks of the Company; and

. internal controls and arrangements are adequate for monitoring compliance with laws and regulations applicable to the Company.

The Group has implemented risk management and compliance frameworks based on AS/NZS ISO 31000:2009 Risk Management - Principles and Guidelines and AS 3806-2006 Compliance Programs. These frameworks (together with the Group’s internal audit function) ensure that: . emphasis is placed on maintaining a strong control environment; . accountability and delegations of authority are clearly identified; . risk profiles are in place and regularly reviewed and updated;

. timely and accurate reporting is provided to Management and respective committees; and

. compliance with the laws (applicable to the Company) and the Group's policies (including business rules of conduct) is communicated and demonstrated.

Management reports periodically to the Audit Committee and the Board on the effectiveness of the Group's risk management and compliance frameworks.

4.7 Business Rules of Conduct

Platinum’s Business Rules of Conduct ("BROC") applies to all staff of the Group. It communicates the appropriate standards of behaviour, provides a framework for the workplace, and informs staff of their responsibilities with respect to legal compliance, confidentiality and privacy, conflicts of interest, investment activities and operational processes.

Compliance is monitored by the Compliance team. All employees are required to sign an annual declaration confirming their compliance with the BROC and the Group's policies.

Statement of Comprehensive Income

For the Year ended 30 June 2011

Notes Income Management fees Performance fees Administration fees Interest Net gains/(losses) on financial assets at fair value through profit or loss Net (losses) on foreign currency contracts Net (losses) on foreign currency bank accounts Other investments Total income Expenses Staff Custody and unit registry Share-based payments 6 Business development Technology Rent and other occupancy Research Other professional Legal and compliance Depreciation Restructuring and related costs Miscellaneous Share registry Mail house Statutory audit fee 17 Periodic reporting Total expenses Profit before income tax expense Income tax expense 2(a) Profit after income tax expense Other comprehensive income Total comprehensive income for the year Basic earnings per share(cents per share) 8 Diluted earnings per share(cents per share) 8	Consolidated Consolidated 2011 2010 $'000 $'000 236,021 217,398 5,638 10,702 11,866 11,155 11,940 8,024 (552) 1,328 (8) (17) (416) (258) 130 23
	264,619 248,355
	19,997 18,781 12,155 11,330 5,975 6,611 4,473 5,568 1,641 1,089 1,493 1,447 1,490 1,494 667 509 557 553 493 417 447 568 421 456 405 388 263 284 255 272 131 196
	50,863 49,963

	213,756 198,392
	63,697 61,540

	150,059 136,852
	- -
	150,059 136,852
	26.73 24.39 26.32 23.33

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Balance Sheet

As at 30 June 2011

Notes Current assets Financial assets at fair value through profit or loss Cash and cash equivalents 12(a) Term deposits Trade receivables Interest receivable Prepayments Total current assets Non-current assets Deferred tax assets 2(b) Fixed assets 3 Total non-current assets Total assets Current liabilities Payables 4 Current tax payable Provisions 5 Total current liabilities Non-current liabilities Deferred tax liabilities 2(c) Provisions 5 Total non-current liabilities Total liabilities Net assets Equity Contributed equity 7(a) Reserves 7(b) Retained profits 9 Total equity	Consolidated Consolidated 2011 2010 $'000 $'000 7,468 663 232,761 29,758 813 194,128 21,114 21,446 1,823 3,062 1,112 956
	265,091 250,013
	1,506 2,030 2,421 2,550
	3,927 4,580

	269,018 254,593
	5,216 11,418 14,653 15,204 1,704 1,626
	21,573 28,248
	687 921 50 26
	737 947

	22,310 29,195

	246,708 225,398
	629,091 629,091 (567,151) (573,126)
	61,940 55,965 184,768 169,433
	246,708 225,398

The above Balance Sheet should be read in conjunction with the accompanying notes.

Statement of Changes in Equity

For the Year ended 30 June 2011

Notes Balance at 1 July 2009 Total comprehensive income for the year Transactions with equity holders in their capacity as equity owners: Share-based payments 6 Dividends paid 10 Balance at 30 June 2010 Total comprehensive income for the year Transactions with equity holders in their capacity as equity owners: Share-based payments 6 Dividends paid 10 Balance at 30 June 2011	Consolidated Consolidated Consolidated Consolidated Contributed Reserves Retained Total Equity Profits $'000 $'000 $'000 $'000 629,091 (579,737) 144,781 194,135
	- - 136,852 136,852 - 6,611 - 6,611 - - (112,200) (112,200)
	629,091 (573,126) 169,433 225,398 - - 150,059 150,059 - 5,975 - 5,975 - - (134,724) (134,724)
	629,091 (567,151) 184,768 246,708

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Statement of Cash Flows

For the Year ended 30 June 2011

Notes Cash flow from operating activities Interest received Receipts from operating activities Payments for operating activities Income taxes paid Cash flow from operating activities 12(b) Cash flow from investing activities Receipts from sales of financial assets Payments for purchases of financial assets Payments for purchases of fixed assets Proceeds on maturity of term deposits and bank certificates of deposit Purchases of term deposits and bank certificates of deposit Cash flow from investing activities Cash flow from financing activities Dividends paid Cash flow from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents held at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents held at the end of the financial year 12(a)	Consolidated Consolidated 2011 2010 $'000 $'000 13,178 8,797 253,987 242,111 (50,724) (38,638) (63,959) (55,930)
	152,482 156,340
	4,067 14,010 (11,420) (13,491) (367) (311) 194,940 167,315 (1,625) (196,111)
	185,595 (28,588)
	(134,646) (112,194)
	(134,646) (112,194)
	203,431 15,558 29,758 14,269 (428) (69)
	232,761 29,758

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

NOTES TO THE FINANCIAL STATEMENTS

30 June 2011

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all periods presented, unless otherwise stated.

The financial report includes the financial statements for Platinum Asset Management Limited as a consolidated entity, consisting of Platinum Asset Management Limited and its subsidiaries. The Corporations Amendment (Corporate Reporting Reform) Act 2010 provides entities that present consolidated financial statements with the option of not having to present separate parent entity financial statements (and instead present key financial disclosures relating to the parent entity in a separate note to the accounts). The parent entity financial disclosures have been prepared based on the same accounting policies used to prepare the financial report. The financial report was authorised for issue by the Directors of the Company on 18 August 2011. The Directors have the power to amend the financial statements after issue.

(a) Basis of Preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards (including AASB 101: Presentation o f Financial Statements ), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001 .

Compliance with International Financial Reporting Standards (IFRS)

Australian Accounting Standards include Australian Equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the consolidated financial statements, and notes thereto, comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

Historical Cost Convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of "financial assets at fair value through profit or loss".

Critical Accounting Estimates

The preparation of the financial statements in conformity with AIFRS requires the use of certain critical accounting estimates and judgements that are included in the accounting policies below.

(b) Principles of Consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries controlled by Platinum Asset Management Limited (the "Company") and the results of all controlled entities for the year ended 30 June. Platinum Asset Management Limited and its subsidiaries together are referred to in this financial report as "the consolidated entity" or "Group".

Subsidiaries are those entities over which the Company has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of voting rights. The existence or effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Company controls another entity.

Where control of an entity is obtained during the financial year, its results are included in the consolidated Balance Sheet from the date control commences. Where control of an entity ceases during a financial year, its results are included for that part of the year during which control existed.

The effects of all transactions between entities in the consolidated entity are eliminated in full. Accounting policies of various companies within the consolidated entity have been changed to ensure consistency with those policies adopted by the consolidated entity.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated Statement of Comprehensive Income and Balance Sheet. The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group.

The Group's policy is to treat transactions with minority interests as transactions with equity owners of the Group. For purchases from minority interests the difference between any consideration paid and the relevant share acquired of the carrying net assets of the subsidiary is deducted from equity.

(c) Income Tax

The income tax expense for the period is the tax payable on the current period taxable income based on the current income tax rate, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements and unused tax losses.

Under AASB 112: Income Taxes, deferred tax balances are determined using the Balance Sheet method that calculates

temporary differences based on the carrying amounts of an entity's assets and liabilities in the Balance Sheet and their associated tax bases. Deferred tax assets are recognised as deductible temporary differences if it is probable that future taxable amounts will be available to utilise those temporary differences.

Tax Consolidation Legislation In accordance with the (Australian) Income Tax Assessment Act (1997), Platinum Asset Management Limited is the head entity of the tax consolidated group that includes Platinum Asset Management Limited, Platinum Asset Pty Limited, Platinum Investment Management Limited and McRae Pty Limited.

Any current tax liabilities of the consolidated group are accounted for by Platinum Asset Management Limited.

Current tax expense and deferred tax assets and liabilities are determined on a consolidated basis and recognised by the consolidated entity. On 23 June 2010, the Australian Taxation Office declared that the consolidated group is an Offshore Business Unit (OBU) under Australian Taxation Law. This allows the consolidated group to apply a concessional tax rate of 10% to net income it derives offshore. The concession was applied from 1 July 2010.

(d) Financial Assets at Fair Value through Profit or Loss

Under AASB 139: Financial Instruments: Recognition and Measurement , investments are classified in the Balance Sheet as "financial assets at fair value through profit or loss". These financial assets, that represent investments in unlisted unit trusts, are initially recognised at fair value.

Gains and losses arising from changes in the fair value of the financial assets are included in the Statement of Comprehensive Income in the period in which they arise. An assessment is made at the end of each reporting period whether there is objective evidence that a financial asset is impaired.

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

(e) Transaction Costs

Initial measurement (cost) on acquisition of trading securities shall not include directly attributable transaction costs such as fees and commissions paid to agents. Incremental transaction costs on purchases of financial assets at fair value through profit or loss are expensed as incurred.

(f) Foreign Currency Translation

The functional and presentation currency of the Company as determined in accordance with AASB 121: The Effects of Changes in Foreign Exchange Rates will be the Australian dollar.

Transactions denominated in foreign currencies are translated into Australian currency at the rates of exchange prevailing on the date of the transaction. Foreign currency assets and liabilities existing at balance date are translated at exchange rates prevailing at balance date. Resulting exchange differences are brought to account in determining profit and loss for the year.

(g) Revenue Recognition

Management, Administration and Performance Fees

Management, Administration and Performance fees are included as part of operating income and are recognised as they are earned. The majority of management fees are derived from the Platinum Trust Funds. This fee is calculated at 1.44% per annum (GST inclusive) of each Fund's Net Asset Value and is payable monthly.

Interest Income Interest income is recognised in the Statement of Comprehensive Income using the effective interest method, which allocates income over the relevant period.

Dividend Income

Dividend income is brought to account on the applicable ex-dividend date.

(h) Directors' Entitlements

Liabilities for Directors' entitlements to fees are accrued at nominal amounts calculated on the basis of current fees rates.

Contributions to Directors' superannuation plans are charged as an expense as the contributions are paid or become payable.

(i) Cash and Cash Equivalents In accordance with AASB 107: Statement of Cash Flows , cash includes deposits at call and cash at bank that are used to meet short-term cash requirements. Cash equivalents includes short-term deposits of three months or less from the date of acquisition that are readily convertible into cash. Cash and cash equivalents at the end of the financial year, as shown in the Statement of Cash Flows, are reconciled to the related item in the Balance Sheet. At 30 June 2011, nearly all of the Group's term deposits have maturities of less than three months from the date of acquisition. However, at 30 June 2010, the Group held many term deposits that had maturities of more than three months from the date of acquisition. Under AASB 107, deposits that have maturities of more than three months are not included as part of "cash and cash equivalents" and were disclosed separately in the Balance Sheet. All term deposits were held with licensed Australian banks. Receipts from operating activities include management, administration and performance fees receipts. Payments for operating activities include payments to suppliers and employees.

(j) Receivables All receivables are recognised when a right to receive payment is established.

Debts that are known to be uncollectible are written off. A provision for doubtful debts is raised when there is evidence the amount will not be collected.

(k) Payables (l) Provision for Employee Entitlements

All payables and trade creditors are recognised as and when the Company becomes liable.

A provision for employee entitlements is recognised by the Group when there is an obligation to the employee. This is consistent with the legal position of the parties to the employment contract. Provision for employee entitlements to salaries, salary-related costs, annual leave and sick leave are accrued at nominal amounts calculated on the basis of current salary rates. Provision for long service leave that are not to be paid or settled within 12 months of balance date, are accrued at the present values of future payments. Contributions to employee superannuation plans are charged as an expense as the contributions are paid or become payable.

(m) Share-Based Payments

The Group operates share-based remuneration plans that include the granting of options and performance rights. The Group also operates a Fund Appreciation Rights Plan (FARP) whereby it purchases shares in Platinum Asset Management Limited on behalf of employees, if the employee satisfies, principally a time-based vesting condition. The value of shares purchased will be equivalent to a notional value in the Platinum Trust Funds, notionally allocated to employees and adjusted for the accumulated performance of the Funds over the vesting period.

Share-based payments are granted to some employees of the Company's operating subsidiary, Platinum Investment Management Limited.

Details relating to Share-based payments are set out in Note 6.

AASB 2009-8: Amendments to Australian Accounting Standards - Group Cash-Settled Share-based Payment Transactions (AASB 2) addresses whether certain types of share-based payment transactions should be accounted for as equity-settled or as cash-settled transactions and specifies the accounting in a subsidiary's financial statements for share-based payment arrangements involving equity instruments of the parent. The Group applies this Standard with the impact being that the expense related to grants made during the year is recognised in the employing entity.

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

(m) Share-Based Payments (cont'd)

The fair value of share-based payments granted is recognised in the consolidated accounts as an expense with a corresponding increase in equity. The fair value is measured at grant date and amortised on a straight line basis over the period that the employees become unconditionally entitled to the share.

For options and performance rights, the fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option or right, the impact of dilution, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the options or performance rights.

For shares to be purchased on behalf of employees, the fair value is measured based on the notional investment in the Platinum Trust Funds. The fair value is subsequently amortised on a straight-line basis over the applicable vesting period and adjusted at each balance date for accumulated investment performance.

At each balance date, the Group revises its estimates of the number of options (and performance rights) exercisable and shares to be purchased on behalf of employees. The share-based payments expense recognised each period takes into account the most recent estimate. The impact of any revision to the original estimate (eg, forfeitures) will be recognised in the Statement of Comprehensive Income with the corresponding adjustment to equity.

(n) Contributed Equity

Ordinary shares are classified as equity.

(o) Earnings per Share

(i) Basic earnings per share

Basic earnings per share is determined by dividing the profit attributable to equity holders by the weighted average number of shares outstanding during the financial year.

(ii) Diluted earnings per share Diluted earnings per share adjusts the weighted average number of shares used to determine basic earnings per share to take into account options and performance rights issued, but not exercised, under the Options and Performance Rights Plan (OPRP) (see Note 8).

(p) Depreciation

Fixed assets are stated at historical cost less depreciation. Fixed assets (other than in-house software) are depreciated over their estimated useful lives using the diminishing balance method.

The expected useful lives are as follows:
Computer Equipment	4 years
Software	2.5 years
In-house Software	4 years
Communications Equipment	4 - 20 years
Office Fitout	5 - 13 1/3 years
Office Furniture and Equipment	5 - 13 1/3 years

Gains and losses on disposals are included in the Statement of Comprehensive Income.

(q) Operating Leases

Platinum Investment Management Limited has entered into a lease agreement for the premises it occupies and pays rent on a monthly basis. Payments made under the operating lease are charged to the Income Statement. Details of the financial commitments relating to the lease are included in Note 16.

(r) Rounding of Amounts

The consolidated entity is of a kind referred to in the Australian Securities & Investments Commission's Class Order 98/0100 (as amended) and, consequently, amounts in the financial report and financial statements have been rounded to the nearest thousand dollars in accordance with that Class Order, unless otherwise indicated.

(s) Goods and Services Tax (GST)

Revenue, expenses, receivables and payables are recognised net of the amount of associated GST, unless the GST is not recoverable from the tax authority. In this case, it is recognised as part of the cost of the acquisition of the asset or has been expensed.

Cash flows are presented on a gross basis.

(t) New Accounting Standards and Interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2011 reporting period. The Company's and consolidated entity's assessment of the impact of these new standards and interpretations is set out below:

(i) AASB 9 : Financial instruments and AASB 2009-11: Amendments to Australian Accounting Standards arising from AASB 9

and AASB 2010-7: Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (effective for annual periods beginning on or after 1 January 2015).

AASB 9: Financial Instruments provides revised guidance on the classification and measurement of financial assets.

The requirements of this standard represents a significant change from the existing requirements of AASB 139 in respect of financial assets. The standard contains two primary measurement categories of financial assets: amortised cost and fair value. The standard eliminates the existing AASB 139 categories of held to maturity, available for sale and loans and receivables. Equity instruments will be measured at fair value with fair value changes in traded equity investments taken to the profit or loss. The standard would not have a significant impact on the Company or consolidated entity as its equity instruments are already recognised at fair value. The Company and consolidated entity will apply the revised standard from 1 July 2015.

(ii) Revised AASB 124: Related Party Disclosures (effective for annual periods beginning on or after 1 January 2011).

The revised AASB 124 simplifies the definition of a "related party", clarifying its intended meaning and eliminating inconsistencies from the definition. The standard would not impact on the disclosures contained in the financial report. The Company and consolidated entity will apply the revised standard from 1 July 2011.

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

(t) New Accounting Standards and Interpretations (cont'd)

(iii) AASB 2009-12: Amendments to Australian Accounting Standards AASB's 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 and 1031; and Interpretations 2, 4, 16, 1039 and 1052 (effective for annual periods beginning on or after 1 January 2011).

The standard contains a variety of "editorial corrections", that reflect changes made to the text of equivalent IFRSs by the IASB. The Company and consolidated entity do not expect that any adjustments will be necessary as a result of applying the amendments. The Company and consolidated entity will apply the revised standards from 1 July 2011.

(iv) AASB 2010-4: Further Amendments to Australian Accounting Standards arising from the Annual Improvement Project (effective from 1 January 2011).

AASB 2010-4 makes amendments to various disclosure requirements including AASB 7: Financial Instruments: Disclosures , AASB 101: Presentation of Financial Statements and AASB 134: Interim Financial Reporting.

The Company and consolidated entity do not expect any adjustments will be necessary as a result of applying the amendments. The Company and consolidated entity will apply the revised standards from 1 July 2011.

(v) AASB 2010-5: Amendments to Australian Accounting Standards AASB's 1, 3, 4, 5, 101, 107, 112, 118, 119, 121 132, 133, 134, 137, 139, 140, 1023 and 1038 and Interpretations 112, 115, 127, 132 and 1042 (effective for annual periods beginning on or after 1 January 2011).

The standard contains a variety of "editorial amendments" to a range of Australian Accounting Standards and Interpretations that reflect changes made to the text of equivalent IFRSs by the IASB.

The Company and consolidated entity do not expect that any adjustments will be necessary as a result of applying the amendments. The Company and consolidated entity will apply the revised standards from 1 July 2011.

(vi) AASB 2010-6: Amendments to Australian Accounting Standards: Disclosure on Transfers of Financial Assets (effective for annual periods beginning on or after 1 July 2011).

AASB 2010-6 amends AASB 1: First-time Adoption of Australian Accounting Standards and AASB 7: Financial Instruments: Disclosures to introduce additional disclosures in respect of risk exposure arising from transfers of financial assets (for example, securitisations) and requires an understanding of the possible effects of any risks that remain with the entity that transfers the financial asset. The amendments will not have any impact on the Company's and consolidated entity's disclosures. The Company and consolidated entity will apply the revised standard from 1 July 2011.

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

2. INCOME TAX

(a) The income tax expense attributable to profit comprises: Current income tax provision Deferred tax assets Deferred tax liabilities Under/(Over) provision of prior period tax Income tax expense The aggregate amount of income tax attributable to the financial year differs from the prima facie amount payable on the profit. The difference is reconciled as follows: Profit before income tax expense Prima facie income tax on profit at 30% Tax effect on amounts that: Reduce tax payable: - Tax rate differential on offshore business income - Allowable credits - Non-assessable income Tax-effect of amounts that are non-deductible Increase tax payable: - Share-Based Payments - Depreciation - Other non-deductible expenses Under/(Over) provision of prior period tax Income tax expense (b) Deferred tax assets The balance comprises temporary differences attributable to: Capital expenditure not immediately deductible Employee entitlements: - Long service leave - Annual leave Unrealised foreign exchange losses Legal fees Tax fees Periodic reporting Audit and accounting Printing and mail house Fringe benefits tax Unrealised capital losses Payroll tax Deferred tax assets (c) Deferred tax liabilities The balance comprises temporary differences attributable to: Interest not assessable Unrealised capital gains Deferred tax liabilities	2011 2010 $'000 $'000 63,323 60,718 524 1,048 (234) (224) 84 (2)
	63,697 61,540
	213,756 198,392
	64,127 59,518 (2,317) - (8) (1) (14) (1) 1,793 1,983 30 41 2 2 84 (2)
	63,697 61,540
	413 1,204 265 245 246 243 235 21 - 105 85 85 26 40 56 50 25 27 2 2 138 - 15 8
	1,506 2,030
	2011 2010 $'000 $'000 687 916 - 5
	687 921

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

3. FIXED ASSETS

Computer equipment (at cost) Less: Accumulated depreciation Purchased and capitalised software (at cost) Less: Accumulated depreciation Communication equipment (at cost) Less: Accumulated depreciation Office premises fit out (at cost) Less: Accumulated depreciation Office furniture and equipment (at cost) Less: Accumulated depreciation	2011 2010 $'000 $'000 934 780 (675) (608)
	259 172 2,500 2,379 (1,948) (1,703)
	552 676 102 120 (76) (85)
	26 35 1,696 1,696 (322) (269)
	1,374 1,427 476 476 (266) (236)
	210 240
	2,421 2,550

Asset Movements during the year

Opening balance Additions Disposals Depreciation expense Closing balance Opening balance Additions Disposals Depreciation expense Closing balance	Computer equipment Computer equipment Purchased and capitalised software Purchased and capitalised software 2011 2010 2011 2010 $'000 $'000 $'000 $'000 172 85 676 788 215 149 142 130 (1) - - (1) (127) (62) (266) (241)
	259 172 552 676
	Communications equipment Communications equipment Office premises fit out Office premises fit out 2011 2010 2011 2010 $'000 $'000 $'000 $'000 35 26 1,427 1,486 9 30 - - (2) (3) - - (16) (18) (53) (59)
	26 35 1,374 1,427

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

3. FIXED ASSETS (cont'd)

Opening balance Additions Disposals Depreciation expense Closing balance The closing balance of purchased and capitalised software disclosed above includes amounts recognised in relation to software in the course of construction and development of $11,000 at 30 June 2011 (2010: $8,000). 4. PAYABLES Current Trade creditors Goods and Services Tax (GST) Unclaimed dividends payable to shareholders Trade creditors are unsecured and payable between seven and 30 days after the consolidated entity becomes liable. Information relating to the consolidated entity's exposure of payables to liquidity risk is shown in Note 18. 5. PROVISIONS Current Long service leave Annual leave Non-Current Payroll tax 6. SHARE-BASED PAYMENTS (a) Options and Performance Rights Plan (OPRP)	Office furniture and equipment Office furniture and equipment 2011 2010 $'000 $'000 240 275 1 2 - - (31) (37)
	210 240
	2011 2010 $'000 $'000 3,382 9,613 1,609 1,658 225 147
	5,216 11,418
	2011 2010 $'000 $'000 883 816 821 810
	1,704 1,626
	50 26
	50 26

On 22 May 2007, the Group established an OPRP to assist with the retention and motivation of employees. Options were granted under this plan on 22 May 2007 and 17 June 2009.

Options

On 22 May 2007, some employees were initially granted 27,010,467 options under the OPRP, to take up shares in Platinum Asset Management Limited at a strike price of $5.00. The options (net of forfeitures) vested on 22 May 2011 and have a further two year exercise period.

On 17 June 2009, some employees were granted 8,783,205 options under the OPRP to take up shares in Platinum Asset Management Limited at a strike price of $4.50. The options vest after four years and have a further two year exercise period.

Performance Rights

On 22 May 2007, employees who were not granted options under the OPRP, were granted performance rights to take up Platinum Asset Management Limited shares at a strike price of $nil. These performance rights vested after three years and had a further two year exercise period. Employees were initially granted 372,703 performance rights. No performance rights have been granted since 2007. All performance rights that were granted to employees (net of forfeitures) vested on 22 May 2010.

Options and performance rights on issue are as follows:

Options Granted on 22 May 2007 Opening balance Vested - 22 May 2011 Closing balance - unvested Options Granted on 17 June 2009 Opening balance Movement Closing balance - unvested	2011 2010 Quantity Quantity 16,547,817 16,547,817
	(16,547,817) -
	- 16,547,817
	8,783,205 8,783,205
	- -
	8,783,205 8,783,205

At 30 June 2011, 16,547,817 options granted on 22 May 2007 have vested, but remain unexercised and 8,783,205 options granted on 17 June 2009 remain unvested and unexercised.

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

6. SHARE-BASED PAYMENTS (cont'd)				2011	2010
				Quantity	Quantity
Performance Rights Granted on 22 May 2007
Opening balance				-	356,503
Forfeitures - 15 February 2010				-	(8,625)
Vested - 22 May 2010				-	(347,878)
Closing balance - unvested				-	-

Closing balance of unvested options and performance rights				8,783,205	25,331,022
	Options	Options	Performance
	22-May-07	17-Jun-09	Rights
Model inputs for options and performance rights granted included:
(a) Exercise price:	$5.00	$4.50	$0.00
(b) Grant date:	22 May 2007	17 June 2009	22 May 2007
(c) Expiry date:	22 May 2013	17 June 2015	22 May 2012
(d) Days to expiry (mid-point) at grant date:	1,825 days	1,825 days	1,095 days
(e) Share price at grant date:	$5.00	$4.10	$5.00
(f) Assumed volatility of the Company's shares:	22.50%	42.00%	22.50%
(g) Assumed dividend yield:	5.35%	4.30%	5.35%
(h) Risk-free interest rate:	6.11%	5.01%	6.17%

In relation to the options and performance rights granted in May 2007, there was no historical basis to work out the assumed price volatility of the Company's shares. Therefore, the volatility was based on an analysis of comparable listed funds management companies. For options granted on 17 June 2009, the volatility was based on the Company's share price movement since December 2008.

Fair Value of Options and Performance Rights

The assessed fair value of options and performance rights granted on 22 May 2007 was $0.82 per option and $4.26 per performance right. The assessed fair value of options granted on 17 June 2009 was $1.14 per option.

(b) Fund Appreciation Rights Plan (FARP)

On 1 April 2009, the Group established the FARP to assist with the retention and motivation of the Group's investment analysts.

Under the FARP, shares in Platinum Asset Management Limited are purchased by the Group on behalf of employees, if they satisfy a time-based vesting period requirement of three years continuous employment with the Group.

The total number of shares to be purchased by the Group are equivalent to the notional investment in the Platinum Trust Funds, notionally allocated to employees, adjusted for the accumulated performance of the Funds over the vesting period. This interest is "notional" only, meaning employees have no entitlement to units in the Platinum Trust Funds. A notional investment in the Platinum Trust Funds occurred on 1 April 2009, 1 April 2010 and 1 April 2011.

Fair Value of the Fund Appreciation Rights (FARs) Granted

The assessed fair value of FARs at 30 June 2011 is based on the notional market value of the investment in the Platinum Trust Funds at the three grant dates (ie, 1 April 2009, 1 April 2010 and 1 April 2011 respectively) adjusted for the movement in notional value of units to 30 June 2011.

The fair value of FARs granted on 1 April 2009, to be amortised over a three year vesting period, was $550,000. The movement in the notional value of units between 1 July 2010 and 30 June 2011 was ($30,525) (2010: $69,587).

The fair value of FARs granted on 1 April 2010, to be amortised over a three year vesting period, was $1,015,000. The movement in the notional value of units between 1 July 2010 and 30 June 2011 was ($71,176) (2010: ($9,195) from 1 April 2010 to 30 June 2010).

The fair value of FARs granted on 1 April 2011, to be amortised over a three year vesting period, was $1,050,000. The movement in the notional value of units between 1 April 2011 and 30 June 2011 was ($39,654) (2010: $nil).

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

6. SHARE-BASED PAYMENTS (cont'd)

Expenses Arising from Share-Based Payment Transactions

Total expenses arising from share-based payment transactions were as follows: Options granted on 22 May 2007 (vested 22 May 2011) Options granted on 17 June 2009 Performance rights granted on 22 May 2007 (vested 22 May 2010) Fund appreciation rights granted on 1 April 2009 Fund appreciation rights granted on 1 April 2010 Fund appreciation rights granted on 1 April 2011 Total share-based payments expense Associated payroll tax expense/(write-back) on options and performance rights Total Amounts are included in staff expense in the Statement of Comprehensive Income. At 30 June 2011, the fair value remaining to be amortised over the remainder of the vesting period is $nil for the options granted on 22 May 2007, $nil for the performance rights granted on 22 May 2007, $4,893,315 for the options granted on 17 June 2009, $137,668 for the FARs granted on 1 April 2009, $592,392 for the FARs granted on 1 April 2010 and $962,819 for the FARs granted on 1 April 2011. Associated payroll tax expense on fund appreciation rights*	2011 2010 $'000 $'000 3,013 3,384 2,494 2,494 - 405 153 253 267 75 48 -
	5,975 6,611 - (3) 25 18
	6,000 6,626

In order to retain and motivate employees, additional options, performance rights or FARs may be issued under the OPRP or FARP in the future, in compliance with the Corporations Act 2001.

7. CONTRIBUTED EQUITY AND RESERVES

(a) Movement in share capital Ordinary shares - opening balance Ordinary shares - issued 24 May 2010* Total Contributed equity	2011 2011 2010 2010 Quantity '000 $'000 Quantity '000 $'000 561,348 629,091 561,000 629,091 - - 348 -
	561,348 629,091 561,348 629,091

*On 24 May 2010, 347,878 performance rights that had vested were converted to ordinary shares. At 30 June 2011, no shares have been issued in relation to those options that vested on 22 May 2011 and hence the 16,547,817 options, whilst vested, remain unexercised.

Ordinary Shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held. All ordinary shares are issued and authorised.

(b) Movement in reserves

Opening balance - Brought forward capital reserve Vested shares - Options (granted on 22 May 2007) Unvested shares - Options (granted on 17 June 2009) Vested shares - Performance rights Unvested shares - Fund appreciation rights (granted on 1 April 2009) Unvested shares - Fund appreciation rights (granted on 1 April 2010) Unvested shares - Fund appreciation rights (granted on 1 April 2011) Closing Balance	2011 2010 $'000 $'000 (573,126) (579,737) 3,013 3,384 2,494 2,494 - 405 153 253 267 75 48 -
	(567,151) (573,126)

Opening balance - Brought forward capital reserve
Vested shares - Options (granted on 22 May 2007)
Unvested shares - Options (granted on 17 June 2009)
Vested shares - Performance rights
Unvested shares - Fund appreciation rights (granted on 1 April 2009)
Unvested shares - Fund appreciation rights (granted on 1 April 2010)
Unvested shares - Fund appreciation rights (granted on 1 April 2011)
Closing Balance

2011
2010
$'000
$'000
(573,126)
(579,737)
3,013
3,384
2,494
2,494
-
405
153
253
267
75
48
-

(567,151)
(573,126)

In 2007, in preparation for listing, a restructure was undertaken in which the Company sold or transferred all of its assets, other than its beneficial interest in shares in Platinum Asset Pty Limited and sufficient cash to meet its year to date income tax liability.

The Company then split its issued share capital of 100 shares into 435,181,783 ordinary shares. It then took its beneficial interests in Platinum Investment Management Limited to 100%, through scrip for scrip offers, in consideration for the issue of 125,818,217 ordinary shares in the Company.

As a result of the share split and takeover offers, the Company had 561,000,000 ordinary shares on issue and beneficially held 100% of the issued share capital of Platinum Investment Management Limited. Subsequently, 140,250,000 shares on issue representing 25% of the issued shares of the Company were sold to the public by existing shareholders.

The opening brought forward capital reserve for 2010 is predominantly comprised of the difference between consideration paid for the purchase of the minority interests and the share of net assets acquired in the minority interests. This was deducted from equity.

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

8. EARNINGS PER SHARE

Basic earnings per share - cents per share Diluted earnings per share - cents per share Weighted average number of ordinary shares on issue used in the calculation of basic earnings per shar Weighted average number of ordinary shares on issue used in the calculation of diluted earnings per sh excluding options that are out of the money Earnings used in the calculation of basic and diluted earnings per share 9. RETAINED PROFITS Retained earnings at the beginning of the financial year Net profit Dividends paid Retained earnings at the end of the financial year 10. DIVIDENDS (Fully Franked) 2011 cents per share Paid - 22 September 2009 - Paid - 16 March 2010 - Paid - 22 September 2010 14.00 Paid - 15 March 2011 10.00	2011 2010 26.73 24.39 26.32 23.33 2011 2010 e 561,347,878 561,036,217 are 570,131,083 586,684,311 2011 2010 $'000 $'000 150,059 136,852 2011 2010 $'000 $'000 169,433 144,781 150,059 136,852 (134,724) (112,200) 184,768 169,433 2011 2010 2010 $'000 cents $'000 per share - 12.00 67,320 - 8.00 44,880 78,589 - - 56,135 - - 134,724 112,200	2011 2010 26.73 24.39 26.32 23.33	2011 2010 26.73 24.39 26.32 23.33
		2011 2010 561,347,878 561,036,217
		570,131,083 586,684,311
		2011 2010 $'000 $'000 150,059 136,852
		2011 2010 $'000 $'000 169,433 144,781 150,059 136,852 (134,724) (112,200)
		184,768	169,433
			2010 $'000 67,320 44,880 - -
			112,200

Dividends not recognised at year-end

In addition to the above dividends paid, since year-end the Directors have declared the payment of a dividend of 15 cents per fully paid ordinary share, fully franked based on tax paid at 30%. The aggregate amount of the dividend expected to be paid on 22 September 2011, but not recognised as a liability at year-end, is $84,202,000.

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

11. FRANKING ACCOUNT

11. FRANKING ACCOUNT
Opening balance based on tax paid and franking credits attached to dividends paid Dividends paid - franked at 30% Tax paid or payable Estimated franking credits available 12. NOTES TO THE CASH FLOW STATEMENT (a) Reconciliation of Cash and Cash Equivalents Cash at bank Cash on deposit (at call) Term deposits (three months or less from date of acquisition)	2011 2010 $'000 $'000 110,907 98,276 (57,739) (48,086) 63,408 60,717
	116,576 110,907
	2011 2010 $'000 $'000 266 45 5,880 16,213 226,615 13,500
	232,761 29,758

Information in relation to the consolidated entity's exposure to interest rate risk is provided in Note 18.

(b) Reconciliation of Net Cash from
Operating Activities to Profit After Income Tax
Profit after income tax
Depreciation
Fixed assets scrapped
Share-based payments
(Gain)/loss on investments
Decrease/(Increase) in cash due to exchange rate movements
Decrease/(Increase) in trade receivables
Decrease/(Increase) in interest receivable
Decrease/(Increase) in prepayments
Decrease/(Increase) in deferred tax assets
(Decrease)/Increase in trade creditors and GST
(Decrease)/Increase in annual leave, long service leave and payroll tax provisions
(Decrease)/Increase in income tax payable
(Decrease)/Increase in deferred tax liabilities

2011
2010
$'000
$'000
150,059
136,852
493
417
3
4
5,975
6,611
548
(1,123)
428
69
332
2,849
1,239
773
(156)
71
524
1,048
(6,280)
4,364
102
(157)
(551)
4,786
(234)
(224)

152,482
156,340

13. CONTINGENT ASSETS, LIABILITIES AND COMMITMENTS TO CAPITAL EXPENDITURE

No contingent assets or liabilities exist at 30 June 2011 and 30 June 2010.

The consolidated entity has no commitments for significant capital expenditure.

14. SUBSEQUENT EVENTS

No significant events have occurred since the balance date that would impact on the financial position of the consolidated entity as at 30 June 2011 and on the results for the year ended on that date.

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

15. SEGMENT INFORMATION

Under AASB 8: Operating Segments, the consolidated entity is considered to have a single operating segment being funds management services. However, AASB 8 requires certain entity-wide disclosures, such as source of revenue by . geographic region. The consolidated entity derives management and performance fees from Australian investment vehicles and its US-based investment mandates. The geographical breakdown of revenue is as follows:

Australia North America 16. LEASE COMMITMENTS Total lease expenditure contracted for at balance date, but not provided for in the accounts is as follows: Operating leases Payable not later than one year Payable later than one, not later than five years 17. AUDITOR'S REMUNERATION During the year, the following fees were paid or payable for services provided by the Auditor to the consolidated entity. The fees were paid by Platinum Investment Management Limited on behalf of the consolidated entity. Statutory audit services Taxation services - compliance Taxation services - foreign tax agent Other audit and assurance services Advisory services - restructuring and related costs	2011 2010 $'000 $'000 252,311 234,481 12,308 13,874
	264,619 248,355
	2011 2010 $'000 $'000 1,448 1,354 4,072 5,411
	5,520 6,765
	2011 2010 $'000 $'000 255 272 474 466 26 18 24 31
	779 787 19 227
	798 1,014

18. FINANCIAL RISK MANAGEMENT

The consolidated entity's activities expose it to both direct and indirect financial risk, including: market risk, credit risk and liquidity risk. Direct exposure to financial risk occurs through the impact on profit of movements in funds under management (“FUM”) and indirect exposure occurs because Platinum’s operating subsidiary is the Investment Manager for various Platinum investment vehicles (that include investment mandates, various unit trusts, known as the Platinum Trusts and its ASX listed investment vehicle, Platinum Capital Limited). This note discusses the direct exposure to risk of the consolidated entity.

The Investment Manager’s risk management procedures focus on managing the potential adverse effects on financial performance caused by volatility of financial markets.

The direct risks and mitigation strategies are outlined below:

(a) Market Risk

The key direct risks associated with the consolidated entity are those driven by investment and market volatility and the resulting impact on FUM, or a reduction in the growth of FUM. Reduced FUM will directly impact on management fee income and profit, because management fee income is calculated as a percentage of FUM. FUM can be directly impacted by a range of factors including:

i) poor investment performance: absolute negative investment performance will reduce FUM and relative under performance to appropriate market benchmarks could reduce the attractiveness of Platinum’s investment products to investors, which would impact on the growth of the business. Poor investment performance could also trigger the termination of Investment Mandate arrangements; ii) market volatility: Platinum invests in global markets. It follows that a decline in overseas markets, adverse exchange rate or interest rate movements will all impact on FUM; iii) a reduction in the ability to retain and attract investors: that could be caused by a decline in investment performance, but also a range of other factors, such as the high level of competition in the funds management industry; iv) a loss of key personnel; and

v) investor allocation decisions: investors constantly re-assess and re-allocate their investments on the basis of their own preferences. Investor allocation decisions could operate independently from investment performance, such that funds outflows occur despite positive investment performance.

A decline in investment performance will also directly impact on performance share fees and performance fees earned by the consolidated entity. Historically, the amount of performance share fees earned by the consolidated entity have fluctuated significantly from year to year and can be a material source of fee revenue.

For those Investment Mandates that pay a performance share fee, the fee is based on a proportion of each Mandate's investment performance. It is calculated at the end of each calendar year and is based upon the actual performance of each Investment Mandate for the year.

Performance fees may be earned by the consolidated entity, if the investment return of a Platinum Trust Fund (or Platinum Capital Limited) exceeds a specified benchmark. Should the actual performance of a Platinum Trust Fund/Platinum Capital Limited be higher than the applicable benchmark, a performance fee would be receivable for the financial year. As at 30 June 2011, performance fees of $nil were receivable (2010: $1,036,950).

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

18. Risk management (cont'd)

If global equity markets fell 10% over the course of the year and consequently the consolidated entity's FUM fell in line with global equity markets, it follows that management fees would fall by 10%. If there was a 10% decrease in performance of Investment Mandates over the course of the calendar year that resulted in an actual negative performance for the Investment Mandate for the year, then no performance fee would be earned.

The above analysis assumes a uniform 10% fall across all global equity markets. This is extremely unlikely as there is a large degree of variation in volatility across markets. For example, it is quite feasible for the Japanese market to fall whilst other Asian markets exhibit strong growth.

To mitigate the impact of adverse investment performance on FUM, the Investment Manager may employ hedging strategies to manage the impact of adverse market and exchange rate movements on the funds it manages. Market risk may be managed through derivative contracts, including futures, options and swaps. Currency risk may be managed through the use of foreign currency contracts.

The section below discusses the direct impact of foreign exchange risk, interest rate risk and price risk on the consolidated entity's financial instruments held at 30 June 2011.

(i) Foreign Exchange Risk

The consolidated entity has US dollar Investment Mandates and derives fees in US dollars from these mandates. In addition, the consolidated entity held US$1,669,772 (equivalent to A$1,557,333) in cash at 30 June 2011 (2010: US$1,671,092 (equivalent to A$1,987,502)). Therefore, the consolidated entity is directly exposed to foreign exchange risk arising from movements in exchange rates.

If the Australian Dollar had been 10% lower/higher against the US Dollar than the prevailing exchange rate used to convert the Mandate fees and foreign currency holdings with all other variables held constant, then net profit after tax would have been A$1,111,554 higher/A$909,455 lower (2010: A$1,254,714 higher/A$1,026,946 lower).

(ii) Interest Rate Risk

At 30 June 2011, term deposits are the only significant asset with potential exposure to interest rate risk held by the consolidated entity. An interest rate movement of +/-1% occurring on 30 June 2011 will have no impact on profit as the interest rate on term deposits are determined on purchase date.

(iii) Price Risk At 30 June 2011, financial assets at fair value through profit or loss represent an immaterial amount of the consolidated entity's total assets and net profit. Accordingly, the consolidated entity does not have a significant direct exposure to price risk. (b) Credit Risk

Credit risk relates to the risk of a counterparty defaulting on a financial obligation resulting in a loss to the Company (typically "non-equity" financial instruments). Credit risk arises from the financial assets of the consolidated entity that includes: cash, receivables and term deposits. All term deposits are held with licensed Australian banks.

The maximum exposure to direct credit risk at balance date is the carrying amount of financial assets recognised in the Balance Sheet. The consolidated entity may hold some collateral as security (for example, margin accounts) and the credit quality of all financial assets is consistently monitored by the consolidated entity. No financial assets are past due or impaired.

Any default in the value of a financial instrument held within any of the Platinum Trusts, Platinum Capital or the Investment Mandates, will result in reduced investment performance. There is no direct loss for the consolidated entity other than through the ensuing reduction in FUM, as noted above in market risk. The Investment Manager employs standard market practices for managing its credit risk exposure.

(c) Liquidity Risk

Liquidity risk is the risk that the consolidated entity will encounter difficulty in meeting obligations associated with financial liabilities. The consolidated entity manages liquidity risk by maintaining sufficient cash reserves to cover its liabilities and receiving management fees to meet operating expenses on a regular basis. Management monitors its cash position on a daily basis and prepares cash forecasts on a weekly basis.

Contractual maturity analysis

At 30 June 2011, the consolidated entity has an obligation to settle trade creditors of $3,381,837 (2010: $9,612,788) between seven and 30 days after becoming legally liable, Goods and Services Tax liability of $1,609,641 (2010: $1,658,140) within 21 days and estimated income tax payable of $14,653,502 (2010: $15,204,065) within approximately five months and unclaimed dividends payable to shareholders of $225,199 (2010: $147,314), long service leave of $883,000 (2010: $816,000) and annual leave of $821,591 (2010: $810,181) payable at call. In addition, a payroll tax amount of $50,368 (2010: $25,803) has been provided for and is payable on vesting dates of rights under the FARP (March 2012, March 2013 and March 2014).

At 30 June 2011, the consolidated entity has sufficient cash reserves of $232,761,124 (2010: $29,757,789) and a further $22,937,858 (2010: $24,507,333) of receivables to cover these liabilities. The current year cash reserves figure includes $226,615,000 of term deposits. All of these term deposits have maturities of 3 months or less from the date of acquisition.

Accordingly, the consolidated entity does not have a significant direct exposure to liquidity risk.

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

18. Risk management (cont'd)

(d) Fair Value Hierarchy

AASB 7: Financial Instruments: Disclosures requires the consolidated entity to classify fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used in making the measurements. The fair value hierarchy has the following levels:

(i) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);
(ii) inputs other than quoted prices included within level 1 that are observable for the asset or

liability either directly (as prices) or indirectly (derived from prices) (level 2); and

(iii) inputs for the assets or liability that are not based on observable market data (unobservable inputs) (level 3).

At 30 June 2011 and 30 June 2010, all financial assets at fair value through profit or loss are classified as level 1 as all financial assets are valued based on quoted arm's length prices in active markets.

(e) Capital Risk Management

(i) Capital requirements

The Company has limited capital requirements. Owing to the volatility caused by the performance share fee component of revenue, the Directors smooth dividend payments and have a policy of paying out 80% to 90% of net profit after tax. This is a policy, not a guarantee.

(ii) External requirements

In connection with operating a funds management business in Australia, the operating subsidiary of the Company (that conducts the funds management business) is required to hold an Australian Financial Services License (AFSL). As a holder of an AFSL, the Australian Securities and Investment Commission (ASIC) requires the subsidiary to:

hold at least $5 million Net Tangible Assets in respect of its managed investments and custody services;
have Adjusted Surplus Liquid Funds (“ASLF”) of:
$50,000; plus
5% of adjusted liabilities between $1 million and $100 million; plus
0.5% of adjusted liabilities for any amount of adjusted liabilities exceeding $100 million, up to a maximum ASLF of $100 million.
have at least $50,000 in Surplus Liquid Funds ("SLF") (i.e. its own funds in liquid form).

The operating subsidiary has complied with all externally imposed requirements to hold an AFSL during the financial year.

19. THE COMPANY

Platinum Asset Management Limited ("the Company") is a company limited by shares, incorporated and domiciled in New South Wales. Its registered office and principal place of business is Level 8, 7 Macquarie Place, Sydney, NSW 2000. The Company is the ultimate holding company for the entities listed in Note 20.

20. THE SUBSIDIARIES

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in Note 1(b):

(a) McRae Pty Limited (incorporated in Australia) - (100% owned by the Company).

(b) Platinum Asset Pty Limited (incorporated in Australia) - (100% owned by the Company).

(d) Platinum Asset Management Pte Ltd (incorporated in Singapore) - (indirectly 100% owned by the Company).

21. RELATED PARTY DEALINGS

(a) Directors' remuneration

Details of all remuneration paid to Directors is disclosed in the Directors' Report and Note 22.

(b) Subsidiaries

Interests in subsidiaries are set out in Note 20.

(c) Transactions with related parties

Platinum Investment Management Limited provides investment management services to related party unit trusts - the Platinum Trust Funds and to the ASX-listed investment company, Platinum Capital Limited. Platinum Investment Management Limited is entitled to receive a monthly management fee from Platinum Capital Limited and the Platinum Trust Funds, a monthly administration fee from the Platinum Trust Funds and in some instances a performance fee (that is calculated annually) based upon the relevant Funds and Platinum Capital Limited's investment return over and above a specified benchmark. The total related party fees recognised in the Statement of Comprehensive Income for the year ended 30 June 2011 was $209,839,040 (2010: $194,882,770). Of this, an amount of $16,469,022 was receivable at 30 June 2011 (2010: $18,276,267).

(d) Tax consolidation and dividend transactions

Any tax payments and dividends are sourced from the operating subsidiary, Platinum Investment Management Limited, and paid out by the Company. Platinum Asset Management Limited is the head entity of the consolidated tax group and is the entity that ultimately pays out dividends to shareholders. The amounts paid are disclosed in the Statement of Cash Flows.

NOTES TO THE FINANCIAL STATEMENTS continued

30 June 2011

22. KEY MANAGEMENT PERSONNEL DISCLOSURES

(a) Details of remuneration

The consolidated entity paid Executive and Non-Executive Directors total short-term compensation of $2,070,900 (2010: $2,198,400) and superannuation of $91,194 (2010: $168,366). Also provided for the Executive Directors of the Company was an increase in long service leave provision of $45,479 (2010: $20,454) and a decrease in annual leave provision of $4,844 (2010: $37,931). In addition, M Halstead received a payment of $118,226 representing $29,941 in accrued annual leave and $93,285 in accrued long service leave.

The above compensation figures includes remuneration paid and provided to A Clifford, who is a Director of the operating subsidiary, Platinum Investment Management Limited. P Howard and A Clifford received share-based compensation that is disclosed below.

(b) Interests of Non-Executive and Executive Directors in shares

The relevant interest in ordinary shares of the Company that each Director had at balance date was: M Cole 300,000 (2010:300,000), B Coleman 200,000 (2010: 200,000), M Towers 20,000 (2010: 20,000), K Neilson 322,074,841 (2010: 322,074,841) and P Howard 104,281.

(c) Share-based compensation

No options or performance rights have been granted to any Non-Executive or Executive Directors of the Company, other than what is disclosed below. P Howard was granted 841,500 options in 2007 and 856,898 options in 2009. A Clifford, a Director of Platinum Investment Management Limited, was granted 3,844,350 options in 2009, but no options in any other year.

The 2007 options granted to P Howard were at a strike price of $5.00. The options vested on 22 May 2011 and have a further two year exercise period. At 30 June 2011, no options have been exercised. The assessed fair value of options granted in 2007 was $0.82 per option. The share-based payments expense relating to the 2007 grant to P Howard was $153,235 (2010: $172,066).

The 2009 options were granted at a strike price of $4.50. The options vest after four years and have a further two year exercise period. The assessed fair value of options granted in 2009 was $1.14 per option.

The share-based payments expense relating to the 2009 grant to P Howard was $243,359 (2010: $243,359).

The share-based payments expense relating to the 2009 grant to A Clifford was $1,091,795 (2010: $1,091,795).

23. PARENT ENTITY DISCLOSURES

Parent entity financial information is as follows:

(a) Current assets $14,879,000 (2010: $15,352,000)

(b) Total assets $665,436,000 (2010: $660,401,000)

(d) Total liabilities $14,878,000 (2010: $15,351,000)

(e) Issued share capital $629,091,000 (2010: $629,091,000)

(f) Reserves $20,050,000 (2010: $14,543,000)

(g) Shareholders' equity $650,558,000 (2010: $645,050,000)

(h) Operating profit before tax $134,724,000 (2010: $112,200,000)

(i) Operating profit after tax $134,724,000 (2010: $112,202,000)

(j) Total comprehensive income $134,724,000 (2010: $112,202,000) There are no guarantees entered into by the parent entity in relation to debts of the subsidiaries, no contingent liabilities and no capital commitments.

DIRECTORS' DECLARATION

In the Directors' opinion,

(a) the financial statements and notes set out on pages 12 to 30 are in accordance with the Corporations Act 2001 including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
(ii) complying with International Financial Reporting Standards as issued by the International Accounting Standards Board; and
(iii) giving a true and fair view of the consolidated entity's financial position as at 30 June 2011 and of its performance, as represented by the results of its operations and its cash flows, for the financial year ended on that date.
(b) there are reasonable grounds to believe that Platinum Asset Management Limited will be able to pay its debts as and when they become due and payable; and
(c) the audited remuneration disclosures that are set out in the Director's Report on pages 5 to 6 comply with AASB 124: Related Party Disclosures and the Corporations Regulations 2001 .

The Directors have been given the declaration required by section 295A of the Corporations Act 2001 by the Managing Director and Finance Director.

This declaration is made in accordance with a resolution of the Directors.

Michael Cole

Director

Kerr Neilson

Director

Sydney 18 August 2011

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Independent auditor’s report to the members of Platinum Asse t Management Limited

Report on the financial report

We have audited the accompanying financial report of Platinum Asset Man a gement Limited (the Company), which compris e s the Balance Sheet as at 30 June 2011, and the Statement of Comprehensive Income, S tatement of Changes in Equity and Statement of Cash Flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the Directors’ Declaration for the Platinum Asset Management Limited group (t h e consolidated entity). The consolidated entity compri s es the Company and the entities it controlled at the year’s end or from time to time during the year.

Directors’ responsibility fo r the financial report

The Directors of the Com p any are responsible for the preparation and fair p resentation of the financial report in accordance with A ustralian Accounting Standards (including the A ustralian Accounting Interpretations) and the C o rporations Act 2001 . This responsibility includes establishing and maintaining internal contr o ls relevant to the preparation and fair presentati o n of the financial report that is free from material misst a tement, whether due to fraud or error; selecting and applying appropriate accounting policies; and m aking accounting estimates that are reasonable i n the circumstances. In Note 1, the Directors also s tate, in accordance with Accounting Standard A A SB 101 Presentation of Financial Statements , that the financial statements comply with Internation a l Financial Reporting Standards.

Auditor’s responsibility

Our responsibility is to ex p ress an opinion on the financial report based on o ur audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethic a l requirements relating to audit engagements a n d plan and perform the audit to obtain reasonable assurance whether the financial report is free fr o m material misstatement. An audit involves performi n g procedures to obtain audit evidence about th e amounts and disclosures in the financial report. The procedures selected depend on the auditor’s ju d gement, including the assessment of the risks of material misstatement of the financial report, wh e ther due to fraud or error. In making those risk asse s sments, the auditor considers internal control rel e vant to the entity’s preparation and fair prese n tation of the financial report in order to design a u dit procedures that are appropriate in the circums t ances, but not for the purpose of expressing an o pinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the approp r iateness of accounting policies used and the reasonableness of accounting estimates made by th e Directors, as well as evaluating the overall pre s entation of the financial report.

Our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial report.

Our audit did not involve an analysis of the prudence of business decisions made by Directors or management.

We believe that the audit e vidence we have obtained is sufficient and appr o priate to provide a basis for our audit opinions.

Liability limited by a scheme appro v ed under Professional Standards Legislation.

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Independence

In conducting our audit, w e have complied with the independence requirements of the Corporations Act 2001.

Auditor’s opinion

In our opinion:

(a) the financial repor t of Platinum Asset Management Limited is in ac c ordance with the Corporations Act 2 001 , including:
- (i) giving a true and fair view of the consolidated entity’s finan c ial position as at 30 June 2011 and of its performance for the year ended on that dat e ; and
- (ii) complyin g with Australian Accounting Standards (including the Australian Accounting Interpreta t ions) and the Corporations Regulations 2001; a n d
(b) the consolidated e ntity’s financial report also complies with Interna t ional Financial Reporting Standards as disclosed in Note 1.

Report on the Remuneration Report

We have audited the Remuneration Report included in the Directors’ Repo r t on pages 5 to 6 for the year ended 30 June 2011. The Directors of the Company are responsible f or the preparation and presentation of the Remu n eration Report in accordance with section 300A o f the Corporations Act 2001 . Our responsibility i s to express an opinion on the Remuneration Re p ort, based on our audit conducted in accordance w ith Australian Auditing Standards.

Auditor’s opinion

In our opinion, the Remun e ration Report of Platinum Asset Management Limited for the year ended 30 June 2011, complies with s ection 300A of the Corporations Act 2001 .

PricewaterhouseCoopers

AJ Loveridge Partner

Sydney 18 August 2011

2 of 2

Directors

Michael Cole Bruce Coleman Margaret Towers Kerr Neilson Philip Howard

Company Secretary Philip Howard

Shareholder Liaison Liz Norman

Registered Office Level 8, 7 Macquarie Place Sydney NSW 2000 Phone - 1300 726 700 (Australia only) Phone - 0800 700 726 (New Zealand only) Phone + 61 2 9255 7500 Fax + 61 2 9254 5555

Share Registrars

Computershare Investor Services Pty Ltd Level 3, 60 Carrington Street Sydney NSW 2000 Phone 1300 855 080 (Australia only) Phone + 61 3 9415 4000 Fax + 61 3 9473 2500

Auditor and Taxation Advisor

PricewaterhouseCoopers 201 Sussex Street Sydney NSW 2000

Securities Exchange Listing

Ordinary shares listed on the Australian Securities Exchange ASX Code: PTM

Website

http://www.platinum.com.au/paml_shares.htm

AI assistant

L1 GROUP LIMITED — Annual Report 2011

65211_rns_2011-08-17_89a617e4-637b-4017-916a-ad086af31299.pdf

Appendix 4E

Preliminary final report

Listing Rule 4.3A

Results for Announcement to the market

Dividends

Dividend Reinvestment Plan

PLATINUM ASSET MANAGEMENT[® ] LIMITED ABN 13 050 064 287

ANNUAL REPORT

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Contents

Chairman’s Report 2011

Performance

Funds under Management (“FUM”)

Dividend

The Board and its Committees

Environment

Conclusion

Managing Director’s Letter to Shareholders

Investment Performance

The Business

Future of Financial Advice (FOFA) 2011 Summary

The Team

Costs

Profits

Fund Under Management ($mn, to 30 June 2011)

Outlook

SHAREHOLDER INFORMATION

Substantial Shareholders

Twenty Largest Shareholders

Voting Rights

Ordinary Shares

Platinum's Commitment to Carbon Neutrality

Distribution of Annual Report to Shareholders

Questions for the AGM

Financial Calendar

DIRECTORS' REPORT

Directors

Principal Activity

Trading Results

Dividends

Review of Operations

Changes in the State of Affairs

Events Subsequent to the End of the Financial Year

Likely Developments and Expected Results of Operations

Rounding of Amounts

Environmental Regulation

Auditor

DIRECTORS' REPORT continued

Non-Audit Services

Auditor's Independence Declaration

Information on Directors

Michael Cole BEcon, MEcon, FFin

Bruce Coleman BSc, BCom, CA, FFin

Margaret Towers CA, GAICD

Kerr Neilson BCom, ASIP

Managing Director since 12 July 1993. (Age 61)

Philip Howard BCom , CA

Directors' Meetings

DIRECTORS' REPORT continued

Remuneration Report (audited)

Principles used to determine the nature and amount of remuneration

Directors' fees

Retirement benefits for Directors

Other benefits (including termination) and incentives

Details of remuneration

Non-Executive Directors

Executive Directors

Key management personnel compensation

DIRECTORS' REPORT continued

Relevant interests of Non-Executive and Executive Directors in shares

Share-based compensation

Service agreements

M Cole, Chairman and Non-Executive Director

B Coleman, Non-Executive Director

M Towers, Non-Executive Director

Directors' Interests in Contracts

Directors' Insurance

L1 GROUP LIMITED Annual Report 2011