Plato Australian Shares Income Fund

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About the Fund

The Plato Australian Shares Income Fund is a long-only equity income fund managed specifically for zero tax investors who can utilise franking credits. These investors include, but are not limited to pension phase investors, SMSFs and charities.

The investment process aims to maximise the total return including franking credits, primarily via holding stocks which pay franked dividends and participating in off-market buy-backs. The Fund has a recommended investment time-frame of 3 to 5 years.

Since inception the Plato Australian Shares Income Fund has out-performed the ASX200 by 0.6% and delivered a 9.5% yield.

LATEST PERFORMANCE REPORTLATEST INSIGHTSPRODUCT DISCLOSURE STATEMENTPDS - ADDITIONAL INFORMATIONTARGET MARKET DETERMINATION (TMD)

OBJECTIVE
The Fund aims to provide an annual gross yield (including franking) that exceeds the gross yield of the Benchmark after fees. The Fund also aims to outperform the Benchmark after fees.
BENCHMARK
S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt).

Benefits

• Specific fund for pension-phase investors / SMSFs and charities
• Investments tailored for after-tax income maximisation
• Franking credits are priced into unit price
• Active dividend rotation is an integral part of the investment process to alleviate permanent sector biases.
• Highly rated and regarded by leading fund research houses1,2,3
• One of Australia’s most highly qualified investment teams with 3 PhD’s and over 135 years investment experience

Note: all investments carry risk:
• Market Risk – The Fund may be materially affected by market, economic, social and/or political conditions globally and in the jurisdictions and sectors in which it invests or operates. This includes conditions affecting interest rates, the availability of credit, currency exchange and trade barriers.
• Regulatory Risk – Changes to regulations can affect the Fund’s operation, disclosure, or investment activities.
• Income Risk – These may fluctuate significantly in their value with the ups and downs in the economic cycle and the fortunes of the issuing firm.

Ratings

Recommended - Zenith Investment Partners1

Highly Recommended - Lonsec Research2

1st Quartile - Evergreen Responsible Investment Grading Index (ERIG) ranking3

COMPETITIVE ADVANTAGE

Most Australian equities funds have all types of investors within their unit trusts, ranging from high tax payers through to zero tax payers such as pension investors. Having a mix of tax paying investors makes it impossible to maximise income and capital returns for clients due to CGT and Franking credit rules.

Having a fund specifically managed and tailored for zero tax investors means Plato can maximise investment returns and income by targeting dividends with franking credits, special dividends and via off market buy-backs. Importantly the fund is also managed to minimise the typical risks of naïve yield strategies which can take large sector biases (eg significant overweights to banks) or be overly exposed to potential dividend traps.

Portfolio Allocation

The Fund can invest in ASX listed entities and listed SPI Futures. It typically consists of 50 – 120 stocks.

Minimum of 90% invested in ASX listed entities. Maximum of 10% invested in cash, although the Fund is intended to be fully invested with cash and SPI futures held for liquidity purposes and to manage cash-flow and investment exposure.

FEES

Minimum Initial investment:

  • Direct investors – $50,000
  • Indirect investors – refer to the operator of your service

Management costs: 0.90% p.a.
Buy/sell spread: +0.20%/-0.20%

PERFORMANCE AS AT 31 DECEMBER 2021

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).
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.

CUMULATIVE PERFORMANCE - GROWTH OF $10,000

UNIT PRICES & DISTRIBUTION HISTORY