Income Maximiser Limited - ASX:PL8

DOWNLOAD PDF
PERFORMANCE AND COMPANY UPDATE

As at 30 November 2022, the Company’s investments delivered a total return of 10.0%¹ after fees and distributed a yield of 7.6% (incl. franking) since inception² compared to the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) (‘Benchmark’) return of 9.5%¹ and a yield of 5.4%¹.

We would like to thank shareholders for their support in the recently completed share purchase plan (SPP), collectively investing an additional $85.8m into the Company. The additional capital will be invested in the same portfolio and in the same way as the existing assets of the Company with no expected impact on the monthly fully franked dividend of PL8.

Commenting on the SPP, Dr Don Hamson, Director of PL8 and Managing Director of Plato said “We are very pleased with the shareholder support for PL8’s SPP evidenced by the amount raised. We are glad that over 4000 shareholders took up the opportunity to invest additional capital in PL8 at closer to NTA.”

1Including franking credits.  2Inception date 28th April 2017.
MONTHLY DIVIDENDS

During the month of October, the Board of Plato Income Maximiser Limited (ASX: PL8) resolved to pay three fully-franked dividends of $0.0055 per share payable in October, November and December 2022, which is a continuation of the level of dividends paid during the September 2022 quarter.

Portfolio Performance1
1Past performance is not a reliable indicator of future performance. Performance is quoted in AUD net of portfolio related fees, costs and taxes. All p.a. returns are annualised.
2Total return including franking credits. Distributed income including franking credits.
3Inception date 28th April 2017.
Company Snapshot
10.82% p.a. inclusive of the net impact of GST and RITC.
2Pre-tax NTA includes tax on realised gains or losses and other earnings, but excludes any provision for tax on unrealised gains or losses.
market overview

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 Company’s investments 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.

Our proprietary dividend cut model indicates that the proportion of stocks forecast to cut dividends has returned to a normal level, and as such, we are forecasting a continuation to the strong level of dividends coming from the Australian market. The Company remains actively positioned to seek superior income than the benchmark.

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.
1Past performance is not a reliable indicator of future performance. Performance is quoted in AUD net of portfolio related fees, costs and taxes. All p.a. returns are annualised.
2Total return including franking credits.
3Distributed income including franking credits.
1NTA calculations exclude Deferred Tax Assets relating to capitalised cost deductions and carried forward tax losses of $0.006. The Franking Account Balance (not reflected in NTA) is $0.029 per share. These figures are subject to audit.
2Pre-tax NTA includes tax on realised gains or losses and other earnings, but excludes any provision for tax on unrealised gains or losses.
3Post-tax NTA includes tax on realised and unrealised gains or losses and other earnings.

PL8 Monthly Dividends

Source: Iress, Plato Investment Management.
1Disclaimer needs to update here

PL8 Share Price v NTA1,2

Source: Iress, Plato Investment Management.
1NTA calculations exclude Deferred Tax Assets relating to capitalised cost deductions and carried forward tax losses of $0.006. The Franking Account Balance (not reflected in NTA) is $0.029 per share.
2Pre-tax NTA includes tax on realised gains or losses and other earnings, but excludes any provision for tax on unrealised gains or losses.
About the Fund Managers

DR PETER GARDNER

Senior Portfolio Manager

Peter is a founder of Plato and has fifteen 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.

DISCLAIMER

Plato Investment Management Limited (‘Plato’) (ABN 77 120 730 136, AFSL 504616) is the investment manager of Plato Income Maximiser Limited (‘PL8’ or the ‘Company’) (ACN 616 746 215). PL8 is the issuer of the shares in the Company under the Offer Document. Any offer or sale of securities are made pursuant to definitive documentation, which describes the terms of the offer (‘Offer Document’) available at https://plato.com.au/lic-overview/ This communication is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this communication nor anything contained in it forms the basis of any contract or commitment. Prospective investors should consider the Offer Document in deciding whether to acquire securities under the offer. Prospective investors who want to acquire under the offer will need to complete an application form that is in or accompanies the Offer Document. The Offer Document is an important document that should be read in its entirety before deciding whether to participate in the offer. Prospective investors should rely only on information in the Offer Document and any supplementary or replacement document. Prospective investors should contact their professional advisers with any queries after reading the Offer Document. 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.

SUBSCRIBE TO OUR NEWSLETTER

Subscribe to keep up to date with the latest fund
information and insights.
SUBSCRIBE

“Opinion is the medium between knowledge and ignorance”

Plato (427-347 BC)

“Opinion is the medium between knowledge and ignorance”

Plato (427-347 BC)