Global Shares Income Fund
- Class A

September 2021, at a glance:
  • 6.1% distributed income² per annum since inception¹
  • 7.4% total return per annum since inception¹
1Inception date 1 March 2016. 2Distributed income, net of withholding tax. 3MSCI World ex Australia, Net Returns Unhedged Index. All data is at 30 September 2021 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 September 2021, the Plato Global Shares Income Fund (Class A) (‘Fund’) delivered a net yield of +0.5% and a total return of -3.9%. Since inception, the Fund has delivered +6.1% p.a. net yield from global equities, which is +4.3% p.a. more than the Benchmark.

Global markets were broadly negative in September, reflecting investor concerns around the US debt ceiling and potential contagion from the Chinese property developer Evergrande. US markets fell substantially (S&P 500 -4.3%, Nasdaq -5.3%), as bond yields rose and a risk off sentiment developed. On the last day a bill was passed to extend funding and assuage some of the concern building around the debt ceiling. The emerging power crisis in Europe compounded concerns, resulting in a weak month for European markets. (Germany -3.6%, France -2.4%). Japan (Nikkei +4.9%) and Singapore (+1%) were positive standouts in a weak Asian region. Japan was helped by the PM’s resignation and suggestions a successor would increase stimulus spending. Oil (WTI Crude +9.5%) had a strong month on the back of OPECs positive consumption forecasts. Falling iron ore prices and the Evergrande crisis resulted in a relatively weak Aussie dollar (AUDUSD -1.2%). This boosted AUD returns for domestic investors in global equities.

The Fund continued to generate strong excess income, driven at the sector level by Energy Minerals and Process Industry stocks. From a country perspective the drivers were Japan and the US. Stock examples of these exposures include portfolio holdings in Japanese petroleum company, Eneos Holdings Inc, and US health tech firm, Merck & Co Inc. The Plato model rotates into such companies to benefit from substantial regular and special dividends.

Growth and Value were in line for most of the month, until growth fell strongly in the final days. (MSCI World Value -3.2% v MSCI World Growth -5.3% in USD). The Fund performed positively in Italy and the Netherlands, but this was more than offset by weak stock selection in the UK and Hong Kong. Relative performance was positive in Financials but weak in Consumer Discretionary. Plato’s proprietary approach seeks to identify stocks that perform strongly in the period prior to their ex-dividend date. Examples include US retailer, Macy’s Inc, and UK insurer, Admiral Group.

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.

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For more information or older versions, please contact Pinnacle Investment Management Limited:

1300 010 311 or email distribution@pinnacleinvestment.com.au

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 (“Zenith”) ABN 60 322 047 314 rating for the Plato Global Shares Income Fund (Class A) assigned November 2020 referred to in this document is limited to “General Advice” (as defined by the 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. 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. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology and regulatory compliance are available on our Product Assessment’s and the Zenith website.
The Lonsec Rating (Plato Global Shares Income Fund (Class A) assigned March 2020) 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: http://www.beyond.lonsec.com.au/intelligence/lonsec-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.

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