Australian Shares Income Fund – Class A

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PRODUCT DISCLOSURE STATEMENTPDS - ADDITIONAL INFORMATION
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.

  • Over the past 12 months the Plato Australian Shares Income Fund has out-performed the ASX200 by 1.9% (to 31 October 2020) and delivered 7.7% dividend income in a year when many income funds have underperformed the index and delivered low yields.
  • The latest adviser webinar video presentation on investing for retirement income (held November 2020) can be viewed here.

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
• One of Australia’s most highly qualified investment teams with 3 PhD’s and over 135 years investment experience

Ratings

Recommended - Zenith Investment Partners1

Highly Recommended - Lonsec Research2

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.

PLATFORM
AVAILABILITY

AMP Flexible Lifetime
AMP North
AMP Personalised Portfolio Service
AMP PortfolioCare
AMP WealthView
AMP Portfolio One (Mac Badge)
ANZ Wrap
Asgard
BT Margin Lending
BT Panorama
BT Wrap
CBS FirstWrap
DPM
FNZ Group
HUB24
IOOF Portfolio Service
IOOF Pursuit
Macquarie Wrap
Mason Stevens
mFund
MLC Navigator
MLC Wrap
Netwealth
Praemium
Premium Choice
uXchange
Wealthtrac

FEES

Minimum Initial investment:

  • Direct investors – $100,000
  • Indirect investors – refer to the operator of your service

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

PERFORMANCE

1Inception date 9 September 2011.
2Including franking credits and special dividends.
3Benchmark is the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt).
All data is as at 31 October 2020 unless indicated otherwise.
Fund returns are after applicable fees, costs and taxes. Past performance is not a reliable indicator of future performance.

CUMULATIVE PERFORMANCE - GROWTH OF $10,000

UNIT PRICES & DISTRIBUTION HISTORY