- 6.0% distributed income² per annum since inception¹
- 6.0% total return per annum since inception¹
Global Shares Income Fund
- Class A
November 2022, at a glance:
1Inception date 1 March 2016. 2Distributed income, net of withholding tax. 3MSCI World ex Australia, Net Returns Unhedged Index. All data is at 30 November 2022 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.
Fund's Income Earned Relative To the Benchmark
Source: Factset, Plato Investment Management
Income Generated - Since Inception1 (PER ANNUM)
Source: Factset, Plato Investment Management
Summary
For the month ended 30 November 2022, the Plato Global Shares Income Fund (Class A) (‘Fund’) delivered a net yield of 0.4% and a total return of +2.2%, outperforming a positive index (+2.0%). Over the last 12 months the fund has outperformed the index by +2.1%, after fees. Since inception, the Fund continues to deliver 6% p.a. net yield from global equities, which is 4.2% p.a. more than the Benchmark.
In November, Global equity markets posted strong returns. However, the rally in the Aussie dollar (+6.1%), driven by strength in China and Iron Ore, significantly lowered returns when translated into the domestic currency. China’s softening stance on Covid, and signals that central banks would slow rate increases, contributed to stronger risk appetite (S&P 500 +5.4%, Nasdaq +4.4%). In Europe these drivers were consolidated by a positive earnings season and slowing inflation prints across the Eurozone (Germany +8.6%, France +7.5%). The positive news out of China had a particularly powerful impact across Asian markets (+Hong Kong +26.6%, Singapore +6.4%). Lower than expected inflation, and the associated expectation of slowing rate hikes, prompted gold to reverse its recent downward slide (+8.3%). Oil fell (WTI -6.9%) on the back of OPEC’s weak demand outlook.
The Fund continued to generate strong excess income, driven at the sector level by Finance and Transportation. From a country perspective the drivers were Italy, the United States, and the United Kingdom. Stock examples of these exposures include Italian Financials, Intesa Sanpaolo, and Banca Mediolanum. The Plato model rotates into such companies to benefit from substantial regular and special dividends.
The rotation towards value stocks slowed, only slightly outperforming their growth counterparts (MSCI World Value +7%, MSCI World Growth +6.6% in USD). In addition, small cap stocks lagged large cap names, a headwind for the strategy (MSCI Small Cap Index +6% v MSCI World Large Cap Index +6.7%). The Fund demonstrated positive stock selection in Italy and Switzerland, offsetting a negative contribution from France. Positive contribution at the sector level came from the allocation to Energy and Financials. Plato’s proprietary approach seeks to identify stocks that perform strongly in the period prior to their ex-dividend date. Examples include US technology company, NVIDIA Corp, and US financial, Wells Fargo & Co.
The Fund remains actively positioned to seek superior income for low tax investors, whilst maintaining full equity capital exposure and diversification to both global developed countries and sectors.
About the Fund
The Plato Global Shares Income Fund is a long-only equity income fund that aims to maximise retirement income for pension phase investors and SMSFs. The Fund aims to provide an annual yield that exceeds the yield of the MSCI World ex Australia, Net Returns Unhedged Index after fees. The Fund also aims to outperform the MSCI World ex Australia, Net Returns Unhedged Index.
ABOUT THE FUND MANAGERS
DANIEL PENNELL, CFA
Senior Portfolio Manager
Daniel joined Plato in November 2015. Prior to Plato, Daniel was a Portfolio Manager at Realindex Investments, and was responsible for all Developed and Emerging Market equity products. Daniel has also held positions at State Street Global Advisors (SSGA) in Sydney and London.
Daniel has a Bachelor of Science with Honours from the University of Birmingham and holds the Chartered Financial Analyst (CFA) designation.
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.
PLATFORM AVAILABILITY
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| wdt_ID | INVESTMENT MANAGER | PLATO INVESTMENT MANAGEMENT LIMITED |
|---|---|---|
| 1 | INVESTMENT RETURN OBJECTIVE | • The Fund aims to provide an annual yield that exceeds the yield of the MSCI World ex Australia, Net Returns Unhedged Index after fees. • The Fund also aims to outperform the MSCI World ex Australia, Net Returns Unhedged Index. |
| 2 | INVESTMENTS | Global listed entities, listed futures and cash. |
| 3 | BENCHMARK | MSCI World ex Australia, Net Returns Unhedged Index. |
| 4 | INVESTMENT APPROACH | • An equity long-only approach. • Managed specifically for tax exempt investors such as pension phase retirees/SMSFs and charities. • Taking advantage of income opportunities such as special dividends and targeting capital appreciation through dividend run up. • Pays monthly distribution, subject to the Fund having sufficient distributable income. |
| 5 | PORTFOLIO ALLOCATION | • Minimum of 90% invested in global listed entities and futures. • Maximum of 10% invested in cash, although the Fund is intended to be fully invested with cash held for liquidity purposes. |
| 6 | INVESTMENT TIMEFRAME | Medium to long term, being 3 to 5 years. |
| 7 | MANAGEMENT COSTS | 0.85% p.a. (inclusive of the net effect of GST and RITC). |
| 8 | BUY/SELL SPREAD | +0.30%/-0.30%. |
| 9 | MINIMUM INVESTMENT | • Indirect investors: refer to the operator of your service. • Direct investors: minimum initial investment $15,000. |
| 10 | RISK/RETURN PROFILE | This product is likely to be appropriate for a consumer seeking regular income to be used as a small allocation within a portfolio where the consumer has a minimum investment timeframe of 3-5 years, and a high risk/return profile. |
* The Fund can also hold foreign exchange contracts for hedging purposes and these contracts represent a negligible percentage of the Fund’s portfolio.
For more information or older versions, please contact Pinnacle Investment Management Limited:
1300 010 311 or email distribution@pinnacleinvestment.com
DISCLAIMER
Interests in the Plato Global Shares Income Fund (ARSN 608 130 838) (‘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 Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned Plato Global Shares Income Fund (Class A) – November 2020) referred to in this piece is limited to “General Advice” (s766B 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, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. 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. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
The Lonsec Rating (Plato Global Shares Income Fund (Class A) assigned May 2021) 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: https://www.lonsec.com.au/investment-product-ratings/.
The rating contained on this website is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
Evergreen Research Pty Ltd trading as ERIG Index ABN 17 647 506 590 is Authorised Representative 001289533 of Evergreen Fund Managers Pty Ltd ABN 75 602 703 202 AFSL 486275. The material is for the information purposes of non-retail clients only. It is not, and is not to be construed as, advice or a recommendation to acquire, hold or dispose of financial products or to use financial services. The ERIG Index measures only the Responsible Investment capabilities of funds. It does not assess the performance or other features of the funds.
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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)
