Income Maximiser Limited - ASX:PL8

PERFORMANCE AND COMPANY UPDATE

As at 31 January 2021, the Company’s investments delivered a total return of 8.4%4 and distributed a yield of 7.7% (incl. franking) since inception5 compared to the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) (‘Benchmark’) return of 8.4%4 and a yield of 5.1%4.

2Including franking credits.3Inception date 28th April 2017.
MONTHLY DIVIDENDS

The Company aims to pay regular monthly dividends. The PL8 Board has resolved to pay three fully franked dividends of $0.004 per share for January, February and March 2021. This is a continuation of the previous recent monthly dividends of $0.004 per share, and is a level the Board feels is prudent given current economic conditions.

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.
2Total return includes franking credits and special dividends. Income is 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 rose strongly in the first half of January after the U.S. Democrats won both Senate seats in Georgia giving them an effective majority.  However the market rolled over at end to be just up 0.3% as optimism waned and volatility picked up with U.S. retail brokers sharply influencing prices on heavily shorted stocks like Gamestop.  Bond yields rose strongly during the month causing a rally in bank stocks and the underperformance of REITs and Infrastructure stocks.  The consumer sector also rallied during the month as retail sales kept up their positive momentum resulting in a number of earnings upgrades, in contrast to travel stocks which fell as travel restrictions increased after the latest outbreak of a mutated strain of Covid 19.

The largest positive contributors to the Company’s investments during the month were overweight positions in Wesfarmers, JB Hi-fi and Telstra as well as underweight positions in Xero and Sydney Airport. However, overweight positions in Fortescue, Charter Hall, Mineral Resources and Aurizon underperformed and an underweight position in Afterpay Touch detracted from relative performance.

The Fund remains actively positioned to seek superior income than the benchmark.  Our proprietary dividend cut model indicates that the proportion of stocks forecast to cut dividends has returned to a normal level after being elevated from March-October last year.  Hence, we continue to forecast that Australian market dividends are likely to increase in 2021 from their level in the 2nd half of 2020.

1Including franking credits
1Past performance is not a reliable indicator of future performance. Performance is quoted in AUD net of portfolio related fees, costs and taxes.
2Including franking credits and special dividends.
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 $0.010 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.

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 $0.010 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 (ABN 77 120 730 136, AFSL 504616) (‘Plato’) is the investment manager of Plato Income Maximiser Limited ACN 616 746 215 (‘PL8’ or the ‘Company’). 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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Plato (427-347 BC)