Institutional Monthly Update

Performance Review

Plato Australian Shares Enhanced Index Composite (gross of fees and expenses) outperformed the S&P/ASX300 Accumulation Index by 0.46% in May. The largest contributors to active performance included were overweight positions in Technology One, Pro Medicus, Life 360, Qantas and Perseus. However, overweight positions in Rio Tinto, Aristocrat Leisure and Telix Pharmaceuticals as well as underweight positions in Macquarie Group and Genesis Minerals detracted from relative performance. The strategy has tracked 0.91% p.a. ahead of its benchmark since inception and delivered an information ratio of 1.

Plato Australian Shares Tax-Exempt Composite (gross of fees and expenses) outperformed the S&P/ASX200 Accumulation Index (post franking credits) by 0.42% in May whilst achieving greater than 20% lower carbon intensity exposure than the benchmark. The largest contributors to active performance included overweight positions in Technology One, Pro Medicus, Qantas, Perseus and Brambles. However, overweight positions in Aristocrat Leisure and Dexus as well as underweight positions in Santos, Wisetech and South32 detracted from relative performance. The strategy has tracked 1.53% p.a. ahead of its benchmark since inception and delivered an information ratio of 0.9.

Plato Australian Shares Income Composite (gross of fees and expenses) outperformed the S&P/ASX200 Accumulation Index (post franking credits) by 0.27% in May. The largest contributors to active performance included overweight positions in Qantas, Technology One, Pro Medicus and Orica as well as an underweight position in CSL. However, overweight positions in Aristocrat Leisure, ALS Ltd and AP Eagers as well as underweight positions in Wisetech and Life 360 detracted from relative performance. The strategy has tracked 1.74% 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) underperformed the S&P/ASX300 Accumulation Index (post franking credits) by 0.37% in May. The largest contributors to active performance included an overweight positions in Technology One, Regis Healthcare, Coan, Perseus and Pro Medicus. However, an overweight position in Steadfast as well as underweight positions in Macquarie Group, Wisetech, Life360 and Goodman detracted from relative performance. The strategy has delivered a 21% higher Sharpe ratio than that of the market since inception and has tracked 0.18% p.a. ahead of its benchmark since inception.

Plato Australian Defensive Income Composite (gross of fees and expenses) outperformed the S&P/ASX200 Accumulation Index (post franking credits) by 0.78% in May. The largest contributors to active performance included overweight positions in Qantas, Evolution Mining, Technology One, Pro Medicus and Perseus. However, overweight positions in Rio Tinto, AMP and Northern Star as well as underweight positions in Macquarie Group and Santos detracted from relative performance. The strategy has tracked 0.44% 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 (-76.0%) and carbon footprint (-76.2%) versus the index. The Fund posted a total return of 5.47% in May, outperforming the benchmark by 0.13%. In May, low-carbon-intensive stocks outperformed, providing a tailwind for the Fund. Relative outperformance was primarily driven by strong stock selection across key sectors, particularly within Financials and Industrials. At the country level, positive contributions came from exposures in France, the UK, and Canada. On a stock-specific basis, the Fund benefited from underweight positions in both Berkshire Hathaway and Exxon Mobil Corp., as well as an overweight in Lundin Gold, a Canadian materials company supported by rising gold prices.

The Plato Global Shares Income Composite (gross of fees and expenses) returned 6.35% in May, outperforming the benchmark by 1.01%. The Fund continued to generate excess income. Positive contribution to alpha was driven by strong stock selection in the US, UK and Germany. The Fund’s most significant positive contribution to active return, by sector, came from alpha seeking exposures in Financial and Consumer Discretionary companies. At the stock level the most positive contribution came from the exposure to US IT business, AppLovin Corp, and the underweight to struggling healthcare company, Eli Lilly and Company.

The Plato Global Alpha Strategy (gross of fees and expenses) delivered a return of 7.32% outperforming the MSCI World benchmark by 2.01%. Since inception, the Fund has achieved an annualised return of 26.47%, outperforming the benchmark by 15.28% per annum and delivering positive relative performance in 93% of rolling quarters. Our upside capture ratio stands at 127%, while the downside capture is just 65%, underscoring our strong risk-adjusted performance. Year to date, the Fund is up 8.97% while the MSCI World is up 0.97%. The Fund’s performance is now ranked 1st out of 262 funds in the Morningstar World Large Cap universe on both an absolute and risk-adjusted basis since inception and has grown to $675 million in assets under management.

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.