As at 31 October 2023, the Company’s investments delivered a total return of 8.0% p.a.1 (after fees) and distributed a yield of 7.6% p.a. (incl. franking) since inception2 compared to the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) (‘Benchmark’) return of 7.8% p.a.1 and a yield of 5.4% p.a1.
Income Maximiser Limited - ASX:PL8
PERFORMANCE AND COMPANY UPDATE
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 2023, which is a continuation of the level of dividends paid during the September 2023 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.
2Total return including franking credits. Distributed income including franking credits.
3Inception date 28th April 2017.
Company Snapshot
10.80% 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.
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 fell 3.7% (including franking credits) in October as the rise in the Australian 10yr bond yield from 4.49% to 4.92% drove another month of PE compression. This rise in bond yields occurred as the market is increasingly pricing in a higher chance that more rate rises will be needed by the RBA to contain inflation. The best performing industries were Gold (+8.7%) which rallied on increased geopolitical risk following the tragic events in Israel, and Utilities (+1.7%) rose after the chance of an increased offer by Brookfield for Origin improved. In contrast, sectors that are more exposed to a rise in bond yields such as Technology (-7.4%) and Healthcare (-7.1%) underperformed.
The largest positive contributors to the Company’s performance during the month were overweight positions in BHP and Northern Star as well as underweight positions in Liontown (after its takeover offer was removed), Allkem and Mirvac. However, overweight positions in Independence Group and Mineral Resources as well as underweight positions in Rio Tinto, Fortescue and Evolution 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.
*Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.
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 divided 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.
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 $0.026 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.
3Post-tax NTA includes tax on realised and unrealised gains or losses and other earnings.
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: Plato. Excludes special dividends paid by the Company. While monthly dividends have been paid since October 2017, this may change in the future. The declaration of dividends by the company is at the full discretion of the Board (unlike trusts where income must be fully distributed each financial year).
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 $0.026 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.
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.
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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)
