Australian Shares Income Fund (Managed Risk)

INTRODUCTION

 

Please note as of 1 July 2017 the minimum for direct (non-platform) investors is $100,000.

ABOUT THE FUND – AU60WHT00550

The Plato Australian Shares Income Fund (Managed Risk) is an equity income fund managed specifically for zero tax investors. These investors include pension phase investors, superannuation funds, SMSFs and charities.

The Fund primarily invests in the Plato Australian Shares Income Fund. The active risk management process used by the Fund, namely the Milliman Managed Risk Strategy™, seeks to stabilise portfolio volatility, capture growth in up markets, and defend against losses during major downturns.

FUND OBJECTIVE

The Fund aims to provide an annual gross yield (including franking) that exceeds the gross yield of the S&P/ASX 200 Accumulation Index including franking after fees. The Fund also aims to outperform the S&P/ASX 200 Accumulation Index including franking after fees over rolling 5 to 7 year periods whilst delivering a lower level of risk than the S&P/ASX 200.

BENCHMARK

S&P/ASX200 Accumulation Index.


 

BENEFITS

 

  • Investment expertise – access to Plato’s investment expertise and quantitative portfolio optimisation techniques;
  • Diversification – the pooling of assets in the Fund provides investors with access to investment opportunities and diversification that is not available to an individual investor;
  • Regular distributions – investors in the Fund have the right to receive distributions which are usually paid quarterly or via a reinvestment for additional units in the Fund, following the end of September, December, March and June; and
  • Income and capital growth – the potential to earn dividends and franking credits from Australian shares and participate in some capital growth of those shares.
  • Risk Management – the Milliman risk management strategy aims to deliver substantially less equity market risk than the S&P/ASX 200 Index over a full market cycle. The Milliman risk management strategy, originally developed in 1998 to assist some of the world’s largest insurance companies with their hedging programs, seeks to stabilise portfolio volatility, capture growth in up markets, and defend against losses during major downturns. This ultimately helps investors experience reduced uncertainty in their portfolios as well as potentially lengthen portfolio life during retirement.

COMPETITIVE ADVANTAGE

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.

The Milliman Risk Management Strategy dynamically adjusts market exposure of the Fund, seeking to stabilise portfolio volatility, capture growth in up markets, and defend against losses during major downturns.

availability and details

FUND APIR: WHT0055AU

PORTFOLIO ALLOCATION

90% to 100% invested in the Plato Australian Shares Income Fund, providing 30% to 100% effective exposure to Australian Equities and 0% to 70% effective exposure to cash and futures depending upon market risk levels and fund performance. Futures (SPI and interest rate) are held for liquidity purposes and to manage risk, cash-flow and investment exposure.

PLATFORM AVAILABILITY

The Fund is available on the following Platforms;

  • AMP North
  • AMP Portfolio Care
  • AMP Wealthview
  • Asgard
  • BT Wrap
  • Colonial First Wrap
  • HUB24
  • IOOF Pursuit
  • Macquarie Wrap
  • mFund
  • Netwealth

FEES

  • Management costs: 0.99% p.a. (inclusive of the net effect of GST)
  • Buy/sell spread: +0.20%/-0.20%
  • Minimum initial investment:
    • direct investors – $100,000
    • indirect investors – refer to the operator of your service