Plato Income Maximiser

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About this Fund

Fund Detail

FUND MANAGER Plato Investment Management
ASX Code PL8*
INVESTMENT STYLE PL8 invests (directly or indirectly) in a portfolio predominately comprised of ASX listed entities, as well as listed SPI futures and cash.
INVESTMENT PROFILE PL8 seeks to provide capital growth and income, and to outperform the Benchmark.
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)
FEES 0.80% p.a.



Benefits of Investing in PL8

  • The Manager employs a disciplined systematic process to take advantage of market inefficiencies to seek to deliver higher levels of income (including franking credits) than the Benchmark.
  • The Manager has significant experience managing equity and equity income portfolios and has successfully managed the Plato Fund since inception.




Key Features

About the Fund

Plato Income Maximiser Limited (ASX:PL8) offers Australian investors the opportunity to invest in an actively managed, diversified portfolio of Australian shares with an income focus.

PL8 is the first Australian Listed Investment Company targeting to pay monthly dividends, which will appeal to investors who require a dependable income stream from their investment portfolio.

Based on the investment strategy of the Plato Australian Shares Income Fund and launched in response to investor demand for an ASX-listed product that delivers high income, PL8 is designed specifically with SMSF and pension-phase investors in mind.

Investment process

The Manager's investment process involves extensive research focusing on relative market values, business momentum, the quality of the potential investee entity and the prospect for dividends.

Once an investment idea has been identified, the Manager will make an assessment of the following factors where relevant to the specific security:

  • Value: the value of each security relative to the market (using a combination of models, including models focussed on earnings, cash flow, dividends or EBITDA);
  • Business Momentum: broker earnings forecasts and share prices to determine the relative business momentum of companies on the Australian share market;
  • Quality: firm quality, having regard to a range of factors including but not limited to the return on equity or change in return on equity, asset turnover (efficiency), and earnings quality;
  • Dividend and dividend run up: the estimated dividend run-up return of each individual security in the period leading up to its forecast dividend ex-date, as well as the expected size of that dividend payment (including franking credits) as forecast by the Manager. Historically, the Manager has observed a general tendency for securities to outperform the general market in the period leading up to their dividend ex-date.
  • Dividend Trap Avoidance: the likelihood of a particular entity reducing its dividend as forecast by the Manager using a number of security specific factors.

These factors are taken into account in assessing the relative merits of entities to invest in. The Manager takes these factors into consideration, as well as investment risk and liquidity when constructing the portfolio.


How we invest your money

The Manager aims to build a diversified portfolio of securities that it expects will achieve total returns in excess of, and "generate more income than, the Benchmark without taking on excessive active portfolio risk. The Manager uses portfolio optimisation software to assist with portfolio construction. Portfolio optimisation is a quantitative approach that constructs the most efficient combination of securities to satisfy investment objectives whilst balancing expected risk and return.

For portfolio construction, individual security weightings, sector weightings, and size exposure are determined by taking into account the following internal guidelines at the time of portfolio construction:

  • The weighting of a security in the portfolio will not be 5% more or 5% less than the Benchmark weighting.
  • Whilst there is no hard limit to relative or absolute sector weightings, the Manager aims to be build a portfolio with similar sector weightings to the Benchmark.

SPI futures (a derivative product which enables investors to trade movements in the S&P/ASX 200 Index in a single transaction) are the only derivative instruments permitted by the Investment Strategy.