Global Shares Income Fund
- Class A

March 2021, at a glance:
  • +6.0% distributed income² per annum since inception¹
  • +6.3% 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 31 March 2021 unless indicated otherwise. Fund returns are after applicable fees, costs and taxes. 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 31 March 2021, the Plato Global Shares Income Fund (Class A) (‘Fund’) delivered a net yield of +0.7% and a total return of +6.8%, strongly outperforming the benchmark by +1.7%. Since inception, the Fund has delivered +6% p.a. net yield from global equities, which is +4.2% p.a. more than the Benchmark.

March was a broadly positive month for developed global markets. US equities had a strong month (S&P 500 +4.2%) against a backdrop of higher bond yields, expectations of economic growth and the associated inflation. Biden’s $1.9tn spending package was passed by the senate. In addition to the vaccine rollout, the rotation to value was a positive for the value heavy European market (Germany +8.8%, UK +3.5%). Asian markets were comparatively weaker, driven by slower than expected Chinese growth targets, US-China concerns and a resurgence in coronavirus (Nikkei +0.7%, Hong Kong -2.1%).  Gold (-1.5%) had a weak month, driven by a firmer greenback and rising treasury yields. Oil (WTI -3.8%) also struggled, posting a large fall mid-month due to doubts over the demand pickup usually associated with a fast recovery.  The domestic dollar (AUDUSD -1.4%) fell, partially reflecting concerns around a fall job numbers associated with the end of JobKeeper.

The Fund continued to deliver strong excess income, driven at the sector level by Financial and Materials stocks. From a country perspective the drivers were the US, UK, and Japan. Stock examples of these exposures include portfolio holdings in Danish insurance company, Topdanmark, and UK miner, Evraz PLC. The Plato model rotates into such companies to benefit from substantial regular and special dividends.

The fund strongly outperformed in a period with a value tailwind. (MSCI World Value +3.5% v MSCI World Growth -1.6% in USD). This was reflected in the continued weakness of headline tech names, Apple, and Amazon. The Fund posted relative outperformance in the US and Japan, more than offsetting return given back in the UK. Within sectors, strong outperformance occurred in IT, Consumer Discretionary and Healthcare. There was small underperformance from Energy and Materials. Plato’s proprietary approach seeks to identify stocks that perform strongly in the period prior to their ex-dividend date. Examples include US tech company, HP Inc and US retailer, Big Lots Inc.

The Fund remains actively positioned to deliver 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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wdt_ID INVESTMENT MANAGER PLATO INVESTMENT MANAGEMENT LIMITED

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’) of the Fund can be located at www.plato.com.au/retail-funds/. You should consider the current PDS 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 2019 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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