Income Maximiser Limited - ASX:PL8

PERFORMANCE AND COMPANY UPDATE

As at 31 October 2020, the Company’s investments delivered a total return of 5.8%4 and distributed a yield of 7.9% (incl. franking) since inception5 compared to the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) (‘Benchmark’) return of 5.5%4 and a yield of 5.4%4. During the last 12mths, in a period when many high yield stocks have underperformed , it is pleasing that the company’s investments have outperformed its benchmark by 2.0%.

1Including franking credits.2Inception 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 October, November and December 2020. 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 and the related uncertainty on the outlook for Australian company dividends experienced as a result of the COVID-19 virus.

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 for the most part of October as the re-opening of Victoria and stimulus announced in the Federal Budget supported the market, before losing much of the gains as the re-imposition of lockdowns following the second/third wave of Covid cases in Europe and the United States and a US election reduced the monthly gain to 1.9%. Our market outperformed the fall of 2.8% in the S&P 500 driven by a 7.5% rise in Banks as bond yields rallied and bad debts come out better than previous expectations. Rising Covid-19 cases outside Australia resulted in poor returns for ASX travel names such as Flight Centre and Sydney Airport, however Qantas, which has a greater exposure to the domestic travel market whose prospects look to be improving rose over the month. The top performing sectors were Information Technology, Financials and Consumer Staples in contrast to Industrials, Utilities and Materials sectors which finished in negative territory for the month.

The largest positive contributors to the Company’s investments during the month were overweight positions in Northern Star (which agreed to a merger with Saracen), Macquarie and Fortescue as well as underweight positions in Newcrest and Sydney Airport. However, overweight positions in Regis Resources, BHP, St Barbara and Aurizon underperformed and an underweight position in Afterpay Touch detracted from relative performance.

The Company remains actively positioned to seek higher income than the benchmark and we are forecasting to deliver ~7% gross income in the next 12 months. While many dividend paying stocks are challenged in the Australian market, Plato is actively seeking to invest in sound businesses with positive earnings outlook who have the ability to maintain or increase dividends and avoiding dividend traps is more important than ever.

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 $0.005. The Franking Account Balance (not reflected in NTA) is $0.012 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 $0.005. The Franking Account Balance (not reflected in NTA) is $0.012 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://platoredux.flywheelstaging.com/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.

“Opinion is the medium between knowledge and ignorance”

Plato (427-347 BC)

“Opinion is the medium between knowledge and ignorance”

Plato (427-347 BC)