Institutional Monthly Update

Performance Review

Plato Australian Shares Enhanced Index Composite (gross of fees and expenses) underperformed the S&P/ASX300 Accumulation Index by 0.03% in March. The largest contributors to active performance included overweight positions in Ampol, Karoon and Coles as well as underweight positions in Northern Star and Westgold. However, overweight positions in Regis Resources, Orica and Sandfire as well as underweight positions in Washington Sol Patts and Telix Pharmaceuticals detracted from relative performance. The strategy has tracked 0.80% p.a. ahead of its benchmark since inception and delivered an information ratio of 0.8.

Plato Australian Shares Tax-Exempt Composite (gross of fees and expenses) underperformed the S&P/ASX200 Accumulation Index (post franking credits) by 0.28% in March whilst achieving greater than 20% lower carbon intensity exposure than the benchmark. The largest contributors to active performance included overweight positions in Coles, Ampol, Woodside, Telstra and QBE Insurance. However, overweight positions in Evolution and BHP as well as underweight positions in Santos, Woolworths and Insurance Australia detracted from relative performance. The strategy has tracked 1.39% p.a. ahead of its benchmark since inception and delivered an information ratio of 0.8.

Plato Australian Shares Income Composite (gross of fees and expenses) outperformed the S&P/ASX200 Accumulation Index (post franking credits) by 0.21% in March. The largest contributors to active performance included overweight positions in Woodside, QBE Insurance, Ampol, Origin Energy and Telstra. However, overweight positions in Evolution, Ramelius Resources and Qantas as well as underweight positions in Santos and Insurance Australia detracted from relative performance. The strategy has tracked 1.67% p.a. ahead of its benchmark since inception, with an information ratio of 0.9.

Plato Australian Shares Low Volatility Income Composite (gross of fees and expenses) outperformed the S&P/ASX300 Accumulation Index (post franking credits) by 1.40% in March. The largest contributors to active performance included overweight positions in Coles, APA, Origin Energy and Telstra as well as an underweight position in Northern Star. However, overweight positions in Orica, Fisher & Paykel Healthcare and NRW Holdings as well as underweight positions in Woodside and Commonwealth Bank detracted from relative performance. The strategy has delivered a 20% higher Sharpe ratio than that of the market since inception and has tracked 0.39% p.a. ahead of its benchmark since inception

Plato Global Shares Low Carbon Enhanced Composite (gross of fees and expenses) delivered a significant reduction in carbon exposure, reducing both carbon intensity and carbon footprint by approximately 75% versus the index. The Fund posted a total return of -2.73% in March, trailing its benchmark by -0.23%. In March the significant outperformance of the energy sector, and high carbon names, created a headwind to performance.  The index relative sector constraints helped to minimise the impact of this.  The strongest contribution to Fund performance came from Plato’s Quality factor, whilst Growth detracted.  Within sectors, positive stock selection in Industrials was more than offset by weakness in Energy and Materials.  At the stock level the most significant detractor was an overweight to Swedish Materials business, Boliden AB.

The Plato Global Alpha Strategy delivered a return of -2.5% (gross of fees) performing in line with the MSCI World benchmark. The longs subtracted -2.32% of excess return which was almost perfectly offset by a gain from the shorts. Since inception, the Fund has achieved an annualised return of 25.3% p,a gross of fees, outperforming the benchmark by 15.2% per annum and delivering positive relative performance in 94% of rolling quarters.

Plato Australian Defensive Income Composite (gross of fees and expenses) underperformed the S&P/ASX200 Accumulation Index (post franking credits) by 0.87% in March. The largest contributors to active performance included overweight positions in Ampol, Coles, Rio Tinto and Telstra as well as an underweight position in Northern Star. However, overweight positions in Regis Resources, Sandfire and Evolution as well as underweight positions in Woodside and Santos detracted from relative performance.

The Plato Global Shares Income Composite (gross of fees and expenses) returned -2.83% in March, underperforming the benchmark by 0.33%. In March, dividend paying companies underperformed their non-paying counterparts, providing a headwind for the fund.  From a sector perspective the negative allocation effect was reduced by positive stock selection within sectors.  The biggest negative contribution was the underweight to a surging Energy sector.   At the stock level, the most positive contribution was from an overweight to Canadian Energy company, Strathcona Resources Ltd, with the most significant detractor the underweight to Exxon Mobil Corporation.

DISCLAIMER

This communication is prepared by by Plato Investment Management Limited (‘Plato’) (ABN 77 120 730 136, AFSL 504616) as the investment manager of the Plato Australian Shares Enhanced Index Strategy, Plato Australian Shares Tax-Exempt Strategy, Plato Australian Shares Income Strategy, Plato Australian Shares Low Volatility Income Strategy, Plato Australian Defensive Income Composite, Plato Global Low Carbon Strategy, Plato Global Shares Income Strategy. The information in this communication is intended for wholesale investors only. This communication is for general information only. It 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. 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 before doing so. Past performance is for illustrative purposes only and is not indicative of future performance.

Any opinions and forecasts reflect the judgment and assumptions of Plato and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future.

Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Plato. Pinnacle Investment Management Group Limited (‘Pinnacle’) ABN 22 100 325 184 and its associates may have interests in financial products and may receive fees from companies referred to during this communication.