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Media Release: Income-focused LIC IPO opens to investors

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LIC responds to investor demand for an ASX-listed, high-income focused vehicle.

Sydney, Thursday 9 March: Plato Income Maximiser Limited (ASX: PL8), the first Listed Investment Company (LIC) managed by Plato Investment Management Limited (Plato) has officially launched today.

The initial public offering (IPO) offers Australian investors the opportunity to invest in an actively managed, diversified portfolio of Australian shares with an income focus.

Plato Income Maximiser Limited’s investment strategy is modelled on the successful Plato Australian Shares Income Fund (the Fund) strategy, which is designed specifically with SMSF and pension-phase investors in mind. The Fund has delivered 9.0% p.a. income and a 14.0% p.a. total return since inception to 31 December 2016*.

The IPO is seeking to raise up to $220 million, with the ability to accept an additional $110 million in over subscriptions. The IPO has an issue price of $1.10 per share. Additionally, investors will receive 1 option for every 1 share issued under the offer.

The LIC was launched in response to investor demand for an ASX-listed product that targets high sustainable income paid monthly.

Dr Don Hamson, Managing Director of Plato Investment Management said: “In a low-return, low-rate market, retirees are looking for specialist, high-yield equities strategies to supplement traditional sources of income like cash and fixed income.

“PL8 is the first Australian LIC targeting to pay monthly, fully-franked dividends, which will appeal to investors who require a dependable income stream from their investment portfolio, but want to avoid eating into their capital as they manage longevity risk.

“In this context, PL8 solves a common investor problem, and does so in an easily accessible product that is exchange-traded,” Dr Hamson added.

PL8 has received a Highly Recommended rating from Lonsec, one of only two LIC IPOs to receive this rating. It has also received a Recommended rating from Zenith.

The LIC’s investment portfolio aims to generate annual income, including franking credits, in excess of the S&P/ASX200 Franking Credit Adjusted Daily Total Return Index (Benchmark), and outperform, after fees, the Benchmark in total return terms including franking credits over typically 3-5 years.

The LIC will have a Board of Directors that are majority independent, including Independent Directors Jonathan Trollip (Chairman), Katrina Onishi and Lorraine Berends, and Non-Independent Directors Dr Don Hamson and Alex Ihlenfeldt.

PL8’s offer period is open until 21 April 2017. Trading on the ASX is expected to commence on 5 May 2017.

Seed Partnerships Pty Limited are the corporate advisers to the LIC. The Joint Lead Managers of the Offer are CBA, Ord Minnett and Taylor Collison, and the Co-Managers are Finclear and Wilsons.

*Income and total return are after fees and costs, grossed up for franking credits. Performance data is to 31 December 2016 and inception date is 9 September 2011. Past performance is not a reliable indicator of future performance.

Key dates:

ASX Code Shares: PL8

Options: PL8O

Offer opens 9 March 2017
Broker Firm and Priority Allocation closes 13 April 2017
General Offer closes 21 April 2017
Application price per share $1.10
Option exercise price $1.10
Listing date on ASX 5 May 2017

 

Disclaimer

 The information in this communication is provided for information purposes only. Nothing contained in this communication constitutes investment, legal, business, taxation or other advice. The information in this communication does not take into account your investment objectives, financial situation or particular needs.

Interests in the Plato Australian Shares Income Fund (ARSN 152 590 157) (‘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 and consult your financial adviser before making an investment decision. Plato Investment Management Limited ABN 77 120 730 136 (‘Plato’), a Corporate Authorised Representative (No. 304964) of Pinnacle Investment Management Limited ABN 66 109 659 109 AFSL 322140, is the investment manager of the Fund.

This communication is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this communication nor anything contained in it forms the basis of any contract or commitment. PL8’s offer of securities is made pursuant to a prospectus issued by PL8 and dated 1 March 2017, which describes the terms of the offer (Offer Document).This Offer Document is available https://plato.com.au/lic-overview/.  Prospective investors should consider the Offer Document in deciding whether to acquire securities in PL8 under the offer.  Prospective investors who want to acquire securities under the offer will need to complete an application form that is in or accompanies the Offer Document.

The Offer Document is an important document that should be read in its entirety before deciding whether to participate in the offer. You should rely only on information in the Offer Document and any supplementary or replacement document. If after reading the Offer Document, you have questions about the offer, you should contact your professional advisers.

This communication does not comprise financial advice and is not intended to be an offer for subscription, invitation, recommendation or sale with respect to any security in any jurisdiction. No representation or warranty, express or implied is made in relation to the accuracy or completeness of the information provided in this communication. Each recipient of the information should make its own independent assessment of the information and take its own independent professional advice in relation to the information and any action taken on the basis of the information.

No recommunication or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this communication. To the maximum extent permitted by law, none of Pinnacle Fund Services Limited, Plato and PL8, its related bodies corporate, shareholders or respective directors, officers, employees, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this communication.

 Zenith

The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (ASX:PL8 rating issued 9 March 2017) 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, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines

Lonsec

The Lonsec Rating (assigned March 2017) 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 Investment Managements 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