News & Insights

Plato launches Global Shares Income Fund (Managed Risk)


NEWS11 April 2016: Plato Investment Management Limited, the retirement income equities specialist, has launched a managed risk version of its latest fund the Plato Global Shares

Income Fund, its fourth investment product designed specifically for Australian retiree and pension-phase investors.

Plato’s two managed risk income funds aim to deliver high levels of income for retirees whilst substantially reducing the level of stock market volatility or risk along the way.
The new Plato Global Shares Income Fund (Managed Risk) primarily invests in the Plato Global Shares Income Fund and uses the Milliman Managed Risk Strategy™, which seeks to stabilise portfolio volatility, capture growth in up markets, and defend against losses during major downturns. This active risk management strategy has proven to be effective for the Plato Australian Shares Income Fund (Managed Risk) with its equity market risk (volatility) reduced by approximately 50% in the two years since its inception (8 April 2014) and it has outperformed the market and delivered investors a net income of 9.1% p.a. (2.5% p.a. above the income benchmark).

Plato Managing Director, Dr Don Hamson said “We are proud to bring our global managed risk fund to market, making it our fourth retirement focused product to create in almost as many years.”

“While retirees are looking for high and generally stable income, we don’t believe this means they need to invest in cash and property and miss out on the capital and diversification benefits of equities – both domestic and global. “Initial feedback from the market to our Global Share Income Fund has been extremely positive and we are very focused on innovating for retirees, a market that is not always a priority for other funds,” he added.

^ Benchmark is the ASX/S&P 200 Accumulation Index (Including franking credits). All data is as at 8 April 2016.