Plato Australian Shares Income Fund - Class A Units
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About this Fund
|FUND MANAGER||Plato Investment Management|
|ASSET CLASS||EQUITY INCOME|
|INVESTMENT STYLE||The Fund will primarily invest in ASX listed entities, with a bias toward yield.|
|INVESTMENT PROFILE||The Fund aims to provide an annual gross yield (including franking) that exceeds the gross yield of the Benchmark after fees. The Fund also aims to outperform the Benchmark after fees.|
|BENCHMARK||S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt)|
|FUND SIZE||S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt)|
|NO. OF HOLDINGS||50-120|
Benefits ofinvesting in the Plato Australian Shares Income Fund
Investing in the Fund offers investors arange of benefits:
Moderate to High
The Fund is intended to be managed for low tax investors who can utilise franking credits.
About the Fund
The Plato Australian Shares Income Fund is a long-only equity income fund managed specifically for zero tax investors who can utilise franking credits. These investors include, but are not limited to pension phase investors, SMSFs and charities.
The investment process aims to maximize the value gained from franked dividends, primarily via holding stocks which pay franked dividends and participating in off-market buy-backs. The Fund has a recommended investment time-frame of 3 to 5 years.
Plato's philosophy is centred on the belief that the market is a complex, adaptive system and is therefore never fully efficient. These market inefficiencies are derived from informational, behavioural and structural (e.g. tax) sources. Some of these sources of return are exploited on a long-term, strategic time horizon and others are extracted on a short-term, tactical basis. Plato's investment process can be best characterised as a "systematic implementation of fundamental ideas.
Most Australian equities funds have all types of investors within their unit trusts, ranging from high tax payers through to zero tax payers such as pension investors. Having a mix of tax paying investors makes it impossible to maximise income and capital returns for clients due to CGT and Franking credit rules.
Having a fund specifically managed and tailored for zero tax investors means Plato can maximise investment returns and income by targeting dividends with franking credits, special dividends and via off market buy-backs. Importantly the fund is also managed to minimise the typical risks of naÃ¯ve yield strategies which can take large sector biases (eg significant overweights to banks) or be overly exposed to potential dividend traps.
How we invest your money
The Fund will primarily invest in ASX listed entities and aims to provide an annual gross yield (including franking) that exceeds the gross yield of the Benchmark after fees.
The weighting of a stock in the Fund's portfolio will not be 5% more or 5% less than the S&P/ASX200 weighting.
The Fund is likely to exhibit high turnover of investments and investment decisions, such as participating in off-market buy-backs, will be evaluated based on a zero-tax rate. The investment process aims to maximise the value gained from franked dividends, primarily via holding stocks which pay franked dividends and participating in off-market buy-backs.