Australian Shares Income Fund
- Class A

September 2021, At a Glance:
  • 9.4% p.a. yield² since inception¹
  • Plato is aiming to generate an 2021 gross yield² of around 8.0%
  • 0.5% outperformance vs benchmark since inception¹
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 September 2021 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 September 2021, the Plato Australian Shares Income Fund (‘Fund’) delivered a total return of 12.4% p.a.2 and a yield of 9.4% p.a.2 (incl. franking) since inception1 compared to the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) (‘Benchmark’) return of 11.9% p.a.2 and a yield of 5.6% p.a.2

The Australian market fell 1.5% (including franking credits) in September, but outperformed global markets as both US and Chinese equities fell nearly 5%. Mining was the worst performer as iron ore prices continued to drop in response to concerns about the Chinese property developer Evergrande and the wider impacts on the Chinese property market. However, offsetting this, Energy stocks rallied as shortages (particularly in China) drove up the prices of gas, coal and oil. Bond yields rose as the U.S. looks to taper stimulus which, along with concern over the US debt ceiling and the above Chinese property market impacts drove selling in global markets.

The largest positive contributors to the Fund’s performance during the month were overweight positions in Commonwealth Bank, Macquarie, Santos and South32 as well as an underweight position in Afterpay. However, overweight positions in Fortescue, Mineral Resources and BlueScope Steel underperformed and underweight positions in Woodside Petroleum and Transurban detracted from relative performance.

Our proprietary dividend cut model indicates that the proportion of stocks forecast to cut dividends has returned to a below normal level after being elevated from March-October last year, and after a strong reporting season for both earnings and dividends, we have increased our Australian market gross dividend forecast from 4.8% to 5.2%. The Fund remains actively positioned to seek superior income than the benchmark.

1Inception date 9 September 2011.
2Net returns, including franking credits and special dividends.
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

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:
$2,013 Million

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wdt_ID INVESTMENT MANAGER PLATO INVESTMENT MANAGEMENT LIMITED

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.au

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 Lonsec Rating (Plato Australian Shares Income Fund (Class A) assigned July 2019) 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: http://www.beyond.lonsec.com.au/intelligence/lonsec-ratings.

The Zenith Investment Partners (“Zenith”) ABN 60 322 047 314 rating for the Plato Australian Shares Income Fund (Class A) assigned June 2019 referred to in this document is limited to “General Advice” (as defined by the 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. 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. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology and regulatory compliance are available on our Product Assessment’s and the Zenith website.

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Plato (427-347 BC)