ABOUT THE FUND – AU60WHT00394
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.
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.
S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt).
How sustainable is the income being generated from the Plato Australian Shares Income Fund?
- Specific fund for pension-phase investors / SMSFs and charities
- Investments tailored for after-tax income maximisation
- Franking credits are priced into unit price
- Active dividend rotation is an integral part of the investment process to alleviate permanent sector biases. Watch Video
- Highly rated and regarded by leading fund research houses
- One of Australia’s most highly qualified investment teams with 3 PhD’s and over 135 years investment experience
- The Plato Australian Shares Income Fund is rated ‘Recommended’ from Zenith Investment Partners (June 2016). Disclaimer.
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 naïve yield strategies which can take large sector biases (eg significant overweights to banks) or be overly exposed to potential dividend traps.
AVAILABILITY AND DETAILS
The Fund can invest in ASX listed entities and listed SPI Futures. It typically consists of 50 – 120 stocks.
Minimum of 90% invested in ASX listed entities. Maximum of 10% invested in cash, although the Fund is intended to be fully invested with cash and SPI futures held for liquidity purposes and to manage cash-flow and investment exposure.
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- Management costs: 0.90% p.a. (inclusive of the net effect of GST)
- Buy/sell spread: +0.20%/-0.20%
- Minimum initial investment:
- Direct investors – $30,000
- Indirect investors – refer to the operator of your service