- 5.8% distributed income2 per annum since inception¹
- 8.5% total return per annum since inception¹
Global Shares Income Fund
- Class A
March 2024, at a glance:
1Inception date 1 March 2016. 2Distributed income, net of withholding tax. 3MSCI World ex Australia, Net Returns Unhedged Index. All data is at 31 March 2024 unless indicated otherwise. Fund returns are after applicable fees, costs and taxes. All p.a. returns are annualised. Past performance is not a reliable indicator of future performance.
Fund's Income Earned Relative To the Benchmark
Source: Factset, Plato Investment Management
Income Generated - Since Inception1 (PER ANNUM)
Source: Factset, Plato Investment Management
Summary
For the month ending 31 March 2024, the Plato Global Shares Income Fund (Class A) (‘Fund’) returned a positive +2.4% (after fees), although still trailing a strong benchmark. The Fund distributed 0.7% of income. Since inception, the Fund has delivered +5.8% p.a. net yield from global equities, exceeding the investment objective to deliver +4% more income than the benchmark, which has yielded 1.7% p.a.
Global equity market’s strong run continued with MSCI Developed Markets +3.4%, while the S&P 500 also strengthened +3.2% in local currency terms, FTSE 100 +4.8% and the Nikkei +3.2%. The S&P 500 is now +10.6% YTD with returns now broadening with the equal weighted index +4.5% for the month of March.
The US market continues to rally and make new all-time highs. Economic and financial conditions have improved over the last year justifying the markets move higher. Additionally, we have seen a fall in tail risks with VIX now back at 13 and a recession probability now back at 35% vs 65% last June. Crude oil prices were strong and gained +4.6% in March as Russia pledged to deepen its output cut in line with its OPEC alliance which is driving higher oil prices. In other commodities, Gold gained +9.1% while Silver also rose by +9.9%. The domestic dollar finished slightly firmer up +0.37% on the back of higher metal prices. The AUD additionally found some support post the RBA- announcement which saw rates held steady.
The Fund continued to generate strong excess income. From a country perspective the drivers were Finland and Sweden. At the sector level income came from Financial and Industrial companies. Stock examples of these exposures include Nordea Bank, Volvo and Konecranes. The Plato model invests in such companies to benefit from substantial regular and special dividends.
The strength of the market was driven by large-cap names, with small cap names the biggest drag on the benchmark. The benchmark was +3% for the month with the strongest sectors relatively outperforming in USD terms being Energy +9.2%: Materials +6.5% and utilities +5.9%. The weakest sectors in USD terms were Consumer Discretionary +0.9%; Information technology +1.7% and Consumer Staples +2.4%. The sectors which were the biggest contributors to the funds active return were Consumer Discretionary +21bps; Real Estate +17bps and Consumer Staples +9bps. Industrials -29bps; Energy -26bps and Financials -23bps were the biggest drags. The main attributors to performance at the single stock level were Covivio +11bps; BAWAG +9bps and Credit Saison Co + 8bps.The biggest detractors were OSB Group -12bps; Accenture -11bps and Wallenius -10bps.
The Fund remains actively positioned to seek superior income for low tax investors, whilst maintaining full equity capital exposure and diversification to both global developed countries and sectors.
Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.
About the Fund
The Plato Global Shares Income Fund is a long-only equity income fund that aims to maximise retirement income for pension phase investors and SMSFs. The Fund aims to provide an annual yield that exceeds the yield of the MSCI World ex Australia, Net Returns Unhedged Index after fees. The Fund also aims to outperform the MSCI World ex Australia, Net Returns Unhedged Index.
ABOUT THE FUND MANAGERS
DANIEL PENNELL, CFA
Senior Portfolio Manager
Daniel joined Plato in November 2015. Prior to Plato, Daniel was a Portfolio Manager at Realindex Investments, and was responsible for all Developed and Emerging Market equity products. Daniel has also held positions at State Street Global Advisors (SSGA) in Sydney and London.
Daniel has a Bachelor of Science with Honours from the University of Birmingham and holds the Chartered Financial Analyst (CFA) designation.
DR DON HAMSON
Managing Director
Don is the founding Managing Director of Plato Investment Management. He is well known as a leader in the practical application of after-tax investing.
Prior to forming Plato, Don was Head of Active Equities, Asia Pacific at State Street Global Advisors. Don has also held various positions at Westpac Investment Management, including Chief Investment Officer and Head of Equities where he managed a $1B Imputation Fund.
PLATFORM AVAILABILITY
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| wdt_ID | INVESTMENT MANAGER | PLATO INVESTMENT MANAGEMENT LIMITED |
|---|---|---|
| 1 | INVESTMENT RETURN OBJECTIVE | • The Fund aims to provide an annual yield that exceeds the yield of the MSCI World ex Australia, Net Returns Unhedged Index after fees. • The Fund also aims to outperform the MSCI World ex Australia, Net Returns Unhedged Index. |
| 2 | INVESTMENTS | Global listed entities, listed futures and cash. |
| 3 | BENCHMARK | MSCI World ex Australia, Net Returns Unhedged Index. |
| 4 | INVESTMENT APPROACH | • An equity long-only approach. • Managed specifically for tax exempt investors such as pension phase retirees/SMSFs and charities. • Taking advantage of income opportunities such as special dividends and targeting capital appreciation through dividend run up. • Pays monthly distribution, subject to the Fund having sufficient distributable income. |
| 5 | PORTFOLIO ALLOCATION | • Minimum of 90% invested in global listed entities and futures. • Maximum of 10% invested in cash, although the Fund is intended to be fully invested with cash held for liquidity purposes. |
| 6 | INVESTMENT TIMEFRAME | Medium to long term, being 3 to 5 years. |
| 7 | MANAGEMENT COSTS | 0.85% p.a. (inclusive of the net effect of GST and RITC). |
| 8 | BUY/SELL SPREAD | +0.30%/-0.30%. |
| 9 | MINIMUM INVESTMENT | • Indirect investors: refer to the operator of your service. • Direct investors: minimum initial investment $15,000. |
| 10 | RISK/RETURN PROFILE | This product is likely to be appropriate for a consumer seeking regular income to be used as a small allocation within a portfolio where the consumer has a minimum investment timeframe of 3-5 years, and a high risk/return profile. |
For more information or older versions, please contact Pinnacle Investment Management Limited:
1300 010 311 or email distribution@pinnacleinvestment.com
DISCLAIMER
This communication is prepared by Plato Investment Management Limited (‘Plato’) (ABN 77 120 730 136, AFSL 504616) as the investment manager of the Plato Global Shares Income Fund (ARSN 608 130 838) (‘Fund’). Pinnacle Fund Services Limited (‘PFSL’) (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.
Link to the Product Disclosure Statement
Link to the Target Market Determination
For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email service@pinnacleinvestment.com
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.
Whilst Plato, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information
do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Plato, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this
communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.
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 and its associates may have interests in financial products and may receive fees from companies referred to during this communication.
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned Plato Global Shares Income Fund (Class A) – November 2022) referred to in this piece is limited to “General Advice” (s766B 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, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. 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. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
The Lonsec Rating (Plato Global Shares Income Fund (Class A) assigned April 2023) 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 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: https://www.lonsec.com.au/investment-product-ratings/.
Evergreen Research Pty Ltd trading as ERIG Index ABN 17 647 506 590 is Authorised Representative 001289533 of Evergreen Fund Managers Pty Ltd ABN 75 602 703 202 AFSL 486275. The material is for the information purposes of non-retail clients only. It is not, and is not to be construed as, advice or a recommendation to acquire, hold or dispose of financial products or to use financial services. The ERIG Index measures only the Responsible Investment capabilities of funds. It does not assess the performance or other features of the funds.
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Plato (427-347 BC)
“Opinion is the medium between knowledge and ignorance”
Plato (427-347 BC)
