Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — H1 FY2021 Earnings Presentation
27 slides from Plato Income Maximiser's earnings presentation, Mar 2, 2021
Slide 1: Shareholder webinar reminder and presentation on half-year results
Plato Income Maximiser Limited (Company) Level 35, 60 Margaret Street Sydney NSW 2000 T: 1300 010 311 E: invest@plato.com.au For personal use only ABN 63 616 746 215 2 March 2021 By Electronic Lodgement Market Announcements Office ASX Ltd 20 Bridge Street SYDNEY NSW 2000 Dear Shareholder, Shareholde
Slide 2: Company Half Year FY2021 Results
COMPANY HALF YEAR FY2021 RESULTS PLATO INCOME MAXIMISER LIMITED ASX: PL8 For personal use only 1
Slide 3: Disclaimer
Disclaimer For personal use only Note: Past performance is not a reliable indicator of future performance. This communication has been prepared by Plato Income Maximiser Limited ABN 63 616 746 215 (PL8). Nothing contained in this communication constitutes investment, legal, business, taxation or oth
Slide 4: Agenda
Agenda For personal use only 01 PL8 Business & Performance Update 02 Market Update 03 Questions 3
Slide 5: PL8 Business & Performance Update
For personal use only PL8 Business & Performance Update 4
Slide 6: PL8 investment portfolio performance
PL8 investment portfolio performance PERFORMANCE TO 31 DECEMBER 2020 AFTER FEES AND COSTS* For personal use only Since Including franking Half-Year 12 months 3 years** inception** (28/4/2017) Portfolio* +13.3% +3.7% +9.3% +8.6% S&P/ASX 200 Tax Exempt +13.7% +2.4% +8.1% +8.5% Active -0.4% +1.3% +1.2%
Slide 7: Longer term performance
Longer term performance PLATO AUSTRALIAN SHARES INCOME FUND PERFORMANCE TO 31 DECEMBER 2020 AFTER FEES For personal use only Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series 3.30 (incl. Franking Credits) 2.80 2.30 1.80 1.30 0.80 Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 S
Slide 8: PL8 delivering high income
PL8 delivering high income 12 month realised yield* For personal use only 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% RBA Cash Rate S&P/ASX 200 PL8 CASH 0.3 2.9 4.9 FRANKING 0.0 0.9 2.0 The above chart is intended to compare the income generated by each of the identified products. This is not inten
Slide 9: Delivering consistent monthly income
Delivering consistent monthly income For personal use only MONTHLY DIVIDENDS PAID 0.6c 0.5c 0.4c 0.3c 0.2c 0.1c 0.0c Jul-18 Jul-19 Jul-20 Jun-18 Jun-19 Jun-20 Nov-17 Apr-18 May-18 Nov-18 Apr-19 May-19 Nov-19 Apr-20 May-20 Nov-20 Dec-17 Jan-18 Feb-18 Mar-18 Aug-18 Sep-18 Dec-18 Jan-19 Feb-19 Mar-19 A
Slide 10: PL8 NTA performance breakdown for 1HFY21
PL8 NTA performance breakdown for 1HFY21 PRE-TAX NTA PER PL8 SHARE* For personal use only $1.15 + $0.113 - $0.001 - $0.024 $1.10 $1.047 $1.05 $1.00 $0.959 $0.95 $0.90 $0.85 Pre-tax NTA 1 Portfolio Company Dividends paid Pre-tax NTA Jul 2020 performance expenses 31 Dec 2020 9 Source: Plato. *Excludes
Slide 11: PL8 trading closely to NTA
PL8 trading closely to NTA TRADING AT A PREMIUM TO NTA POST LAST FEDERAL ELECTION For personal use only PL8 PRICE VS. NTA SINCE LISTING $1.25 $1.15 $1.05 $0.95 $0.85 $0.75 May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Share Price Net Tangible Assets (NTA) 10 Source: Bl
Slide 12: Market Update
11 For personal use only Market Update
Slide 13: RBA moves cash rate to new historic low of 0.1%
RBA moves cash rate to new historic low of 0.1% OFFICIAL RBA CASH RATE EXPECTATIONS – EVEN LOWER FOR LONGER For personal use only RBA cash rate 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Jul-2005 Jul-2006 Jul-2007 Jul-2008 Jul-2009 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2015 Jul-2016 Jul
Slide 14: Yields on all asset classes are falling
Yields on all asset classes are falling For personal use only Plato Aussie Income Fund (gross normalised) S&P200 Gross CashRate 12 Mth Term Deposit 3yr BBB Credit 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Jun-2013 Jun-2014 Jun-2015 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Sep-2012 Dec-2012 Mar
Slide 15: Dividend outlook is improving
Dividend outlook is improving AVERAGE % CHANCE OF DIVIDEND CUTS FOR AUSTRALIAN MARKET For personal use only 14 Source: Plato
Slide 16: Top dividend traps
TOP DIVIDEND TRAPS BE CAREFUL LOOKING AT HISTORICAL YIELD For personal use only • COVID has impacted sectors STOCK HIST. ANNUAL YIELD % and stocks differently: (31 DEC 2020) – Tourism / Leisure Crown Casino / Flight 11.0% Centre – Consumer Discretionary G8 Education 6.7% – Resources South32 – Infras
Slide 17: Winning by not losing - avoiding dividend traps
Winning by not losing - avoiding dividend traps AGL ENERGY UP TO 11% GROSS DIVIDEND YIELD For personal use only 22.00 12.00% 20.00 11.00% 18.00 10.00% Historical Yield (%) Price 16.00 9.00% 14.00 8.00% 12.00 7.00% 10.00 6.00% Price (LHS) Historical Gross Yield (RHS) 16
Slide 18: APRA December Update re Capital Management
APRA December Update re Capital Management* For personal use only “…Since July 2020, there has been an improvement in the economic outlook and stability in financial markets. For banks, there has been a strengthening in capital positions and provisioning levels, and the majority of loans that were p
Slide 19: Bank Dividend Forecasts
Bank Dividend Forecasts IMPROVING, ALBEIT STILL LOWER THAN FY19 For personal use only • Bank dividends cut an average of 60% in FY20. Bank Dividends 5 • APRA removed shackles from banks in December. 4.5 4 • FY21 Divs to increase as earnings aren’t affected by 3.5 extra provisioning and payout ratios
Slide 20: Australian Iron Ore Miners
Australian Iron Ore Miners IRON ORE PRICE KEEPS MOVING HIGHER For personal use only STOCK 12MTH GROSS YIELD % 14.5% 8.2% 6.1% Source: Plato, Macrobond, Macquarie Macro Strategy, Bloomberg, as at 18th Feb 2021 using reported divs for March quarter 19
Slide 21: Australian Retailers Sales Numbers during COVID
Australian Retailers Sales Numbers during COVID MANY RETAILERS HAVE BEEN THRIVING DURING THE SHUTDOWN For personal use only • Particular stocks have been benefiting by % SALES STOCK consumers diverting their discretionary INCREASE/DECREASE spend from travel to goods as they spend more time at home.
Slide 22: Dividend Outlook
Dividend Outlook LARGE DIVIDEND PAYERS For personal use only GOOD BAD UGLY 21 Source: Plato, Bloomberg, S&P200, Outlook based on Plato’s proprietary modelling and our views on the improving economy however there is no guarantee the outlook will eventuate.
Slide 23: Big Aussie income stocks doing it tough!
Big Aussie income stocks doing it tough! 6 STOCKS ACCOUNT FOR NEARLY HALF OF ALL DIVIDENDS For personal use only % of Gross Dividend Income 2020 Price Performance “…Australia is poorly diversified” 22 Source: Plato, Bloomberg S&P200
Slide 24: Ampol announces off-market buy-back
Ampol announces off-market buy-back WORTH 20% AFTER TAX FOR ZERO TAX INVESTORS For personal use only • A$300m off market buyback - approximately 4% of shares on issue • Worth 20% for pensioners for every share successfully tendered • 89.4% scale back Highlights value of franking credits 23 Source: P
Slide 25: Market Outlook
Market Outlook For personal use only • Interest rates to be even lower for longer – All asset classes will deliver lower income – Equity income actually looks relatively more attractive • ALP has formally retracted its franking credit policy • Dividends have been cut, but outlook improving – APRA ta
Slide 26: Questions
25 For personal use only Questions
Slide 27: Retirement Solutions and Income Specialists
For personal use only Retirement Solutions and Income Specialists
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