- 9.7% p.a. yield² since inception¹
- Plato is aiming to generate a FY23 gross yield² of around 9%
- 0.9% p.a. outperformance (after fees) vs benchmark since inception¹
Australian Shares Income Fund
- Class A
November 2022, At a Glance:
1Inception date 9 September 2011.
2Including franking credits. The 1 month number in Jan, Feb, Apr, May, July, Aug, Oct and Nov include the accrued but not distributed income.
3Benchmark is the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt).
All data is as at 30 November 2022 unless indicated otherwise.
Fund returns are after applicable fees, costs and taxes. All p.a. returns are annualised. Past performance is not a reliable indicator of future performance.
2Including franking credits. The 1 month number in Jan, Feb, Apr, May, July, Aug, Oct and Nov include the accrued but not distributed income.
3Benchmark is the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt).
All data is as at 30 November 2022 unless indicated otherwise.
Fund returns are after applicable fees, costs and taxes. All p.a. returns are annualised. Past performance is not a reliable indicator of future performance.
DISTRIBUTION HISTORY
Source: Plato Investment Management
REALISED YIELD
Source: Iress, Plato Investment Management
Cash rate = RBA Cash Rate
ASX200 = S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt)
Fund = Plato Australian Shares Income Fund.
Summary
As at 30 November 2022, the Plato Australian Shares Income Fund (‘Fund’) delivered a total return of 12.1% p.a.2 and a yield of 9.7% p.a.2 (incl. franking) since inception (9 September 2011) after fees compared to the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) (‘Benchmark’) return of 11.2% p.a.2 and a yield of 5.6% p.a.2
The Australian market continued to rally in November, rising 6.8% (including franking credits), along with global markets as optimism rose of a re-opening of the Chinese economy along with Chinese government stimulus. The RBA increased the cash target rate by another 25bps to 2.85% but the Aussie 10 year bond yield fell 23bps to 3.53% as market expectations rose that we have reached peak inflation and a dovish pivot from central banks is becoming more likely. Utilities were the best performing sector after a takeover offer for Origin Energy, closely following by mining stocks which benefited from the China re-opening optimism. All sectors had positive returns in November but the weakest of these was Communication Services, Financials and Energy.
The largest positive contributors to the Fund’s performance during the month were overweight positions in BHP and Northern Star as well as underweight positions in Santos, Pilbara Minerals and Xero. However, overweight positions in Elders, Aristocrat Leisure and Woodside Petroleum as well as underweight positions in Fortescue and Rio Tinto detracted from relative performance.
The Fund remains actively positioned to seek superior income than the benchmark. After a very strong annual yield in FY22, we expect the gross income produced by the Fund in FY23 to return to a more normal level of 9%.
1Stocks listed are the largest 10 yielding stocks in our portfolio with a greater than 0.5% portfolio weight. 2Yield is calculated as the dividends (including specials and franking credits) paid over the last 12mths dividend by the price as at the report date.
CUMULATIVE PERFORMANCE - GROWTH OF $10,000
Source: Iress, Plato Investment Management
ABOUT THE FUND MANAGERS
DR PETER GARDNER
Senior Portfolio Manager
Peter is a founder of Plato and has twelve years investment experience. Peter is a Senior Portfolio Manager at Plato and manages the Plato Australian Shares Income Fund.
Peter received 1st Class Honours and a PhD from The University of New South Wales where his thesis topic was behaviour of Australian active investment managers. He has previous worked at Macquarie Bank, Mercer and ING.
DR DON HAMSON
Managing Director
Don is the founding Managing Director of Plato Investment Management. He is well known as a leader in the practical application of after-tax investing.
Prior to forming Plato, Don was Head of Active Equities, Asia Pacific at State Street Global Advisors. Don has also held various positions at Westpac Investment Management, including Chief Investment Officer and Head of Equities where he managed a $1B Imputation Fund.
ASSETS UNDER MANAGEMENT:
$2,373 Million
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| wdt_ID | INVESTMENT MANAGER | PLATO INVESTMENT MANAGEMENT LIMITED |
|---|---|---|
| 1 | OBJECTIVE |
|
| 2 | BENCHMARK | S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) |
| 3 | INVESTMENT APPROACH | The Fund is intended to be managed for low tax investors who can utilise franking credits. These investors include, but are not limited to, superannuation funds and charities. |
| 4 | MANAGEMENT COSTS | 0.90% p.a. (inclusive of the net effect of GST and RITC). |
| 5 | BUY/SELL SPREAD | +0.20% / -0.20%. |
| 6 | MINIMUM INVESTMENT |
|
| 12 | RISK/RETURN PROFILE | This product is likely to be appropriate for a consumer seeking regular income to be used as a small allocation within a portfolio where the consumer has a minimum investment timeframe of 3-5 years, and a high risk/return profile. |
This strategy is specifically managed for low tax investors, thus providing an aligned investment strategy for pension and charity investors. The Fund aims to generate higher income (including franking credits) than its Benchmark. A distinguishing feature of the strategy is that it aims to deliver higher yield without taking on large sector biases, such as overweighting banks.
For more information or older versions, please contact Pinnacle Investment Management Limited on 1300 010 311 or email distribution@pinnacleinvestment.com
Interests in the Plato Australian Shares Income Fund (ARSN 152 590 157) (‘Fund’) are issued by Pinnacle Fund Services Limited, ABN 29 082 494 362 AFSL 238371. Pinnacle Fund Services Limited is not licensed to provide financial product advice. A copy of the most recent Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the Fund can be located at www.plato.com.au/retail-funds/. You should consider the current PDS and TMD in its entirety before making an investment decision. Plato Investment Management Limited AFSL 504616 ABN 77 120 730 136 (‘Plato’) is the investment manager of the Fund. Pinnacle Fund Services Limited and Plato believe the information contained in this communication is reliable, however its accuracy, reliability or completeness is not guaranteed. Any opinions or forecasts reflect the judgment and assumptions of Plato and its representatives on the basis of information at the date of publication and may later change without notice. The information is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. This communication is for general information only. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice relevant to their particular circumstances, needs and investment objectives. Past performance is not a reliable indicator of future performance.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned Plato Australian Shares Income Fund (Class A) – June 2021) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
The Lonsec Rating (Plato Australian Shares Income Fund (Class A) assigned October 2021) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Plato product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: https://www.beyond.lonsec.com.au/intelligence/lonsec-ratings.
Evergreen Research Pty Ltd trading as ERIG Index ABN 17 647 506 590 is Authorised Representative 001289533 of Evergreen Fund Managers Pty Ltd ABN 75 602 703 202 AFSL 486275. The material is for the information purposes of non-retail clients only. It is not, and is not to be construed as, advice or a recommendation to acquire, hold or dispose of financial products or to use financial services. The ERIG Index measures only the Responsible Investment capabilities of funds. It does not assess the performance or other features of the funds.
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“Opinion is the medium between knowledge and ignorance”
Plato (427-347 BC)
“Opinion is the medium between knowledge and ignorance”
Plato (427-347 BC)
