Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — FY2018 Earnings Presentation
20 slides from Plato Income Maximiser's earnings presentation, 2018
Slide 1: Company Annual Results
Plato INCOME MAXIMISER Company Annual Results
Slide 2: Agenda
01 PL8 investment strategy and performance 02 Manager Update Agenda 03 Investment Environment 04 Questions
Slide 3: PL8 investment strategy and performance
PL8 investment strategy and performance www.plato.com.au 3
Slide 4: PL8 investment portfolio performance
PL8 investment portfolio performance Performance to 30 June 2018 after fees and costs* Since 1 year Inception p.a. (28/4/2017) Including Franking Portfolio 13.3% 8.8% S&P/ASX200 Tax Exempt 14.6% 10.1% Active -1.3% -1.3% *Inclusive of the net impact of GST and Reduced Input Tax Credits Past performan
Slide 5: Plato Australian Shares Income Fund longer term performance after fees
Plato Australian Shares Income Fund longer term performance after fees www.plato.com.au 5
Slide 6: PL8 dividends accrued in FY2018
PL8 dividends accrued in FY2018 Delivers high income 12 month accrued yield* 10.0% 9.0% 8.0% 7.0% 6.0% Yield 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% RBA Cash Rate S&P/ASX 200 Fund Cash Cash Yield 1.5 4.3 6.3 Franking Franking Yield 0.0 1.4 2.4 *to 30 June 2018 after fees www.plato.com.au 6
Slide 7: PL8 – dividends
PL8 – dividends PL8 commenced paying monthly dividends of 0.45 cents per share in October 2017. The Board of PL8 increased monthly dividends by 11% to 0.5 cps in April. Latest three fully franked dividends of 0. 5 cps: July August September Amount: 0.5 cents per share 0.5 cents per share 0. 5 cents
Slide 8: Pre-Tax NTA per PL8 share
PL8 NTA performance breakdown for FY2018* $1.20 Pre-Tax NTA per PL8 share + $0.105 - $0.000 - $0.002 - $0.042 $1.10 $1.099 $1.038 $1.00 Pre-tax NTA 1 Portfolio Tax provided Company Dividends paid Pre-tax NTA 30 Jul 2017 performance expenses Jun 2018 *excludes franking credits www.plato.com.au 8
Slide 9: Plato Investment Management (Manager) Update
Plato Investment Management (Manager) Update www.plato.com.au 9
Slide 10: Manager overview and update
Manager overview and update ▪ Specialist in objective-based Australian and global equities solutions – Founded 2006, based in Sydney – Deep expertise in delivering customised, income and tax-exempt solutions ▪ Independent and majority employee-owned – Aligns interest, low staff turnover ▪ Highly exp
Slide 11: Investment Environment
Investment Environment www.plato.com.au 11
Slide 12: Interest rate outlook still benign
Interest rate outlook still benign Cash rate expectations over next 5 years 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Cash (Actual) Cash 2019 Cash 2020 Cash 2021 Cash 2022 Cash 2023 10 year bond (exp) (exp) (exp) (exp) (exp) (Actual) Australia US But no sign of an inverted yield curve – the bear marke
Slide 13: Aussie income stocks doing it tough
Aussie income stocks doing it tough 6 stocks account for half the dividends paid in Australia Price terms 1.2 1.1 1 0.9 0.8 0.7 0.6 0.5 0.4 31/03/2017 31/12/2017 30/12/2016 30/01/2017 28/02/2017 30/04/2017 31/05/2017 30/06/2017 31/07/2017 31/08/2017 30/09/2017 31/10/2017 30/11/2017 31/01/2018 28/02/
Slide 14: ALP franking credit proposal
ALP franking credit proposal ▪ Proposal to eliminate the net refund of franking credits for all Australian investors other than charities and endowments. ▪ The original policy was expected to impact 1.17m individuals and superannuation funds and generate $59B in savings over 10 years ▪ The proposal
Slide 15: Opposition proposal not legislation
Opposition proposal not legislation Don’t panic yet ▪ This is a proposal by the current Opposition. To become law, it will require: 1) The ALP to win the next election; and 2) Cross-bench Senate support to pass through the Upper House ▪ Given the very divisive nature of this proposal, we believe gai
Slide 16: Dividend rotation combined with good value quality long term holdings provide income plus growth
Dividend rotation combined with good value equality long term holdings provide income plus growth Dividend + Franking + Run up = Sustainable capture capture capture Income Good value, quality long term holdings: Good Value – Earnings, cash flow, EBITDA High Quality – ROE, cash flow generation Good b
Slide 17: 2017/18 – a challenging period for income stocks
2017/18 – a challenging period for income stocks ▪ Large income stocks like Telstra and the big four banks have performed poorly with Telstra’s share price down nearly 40% and the average large bank share price down 6%, compared to the ASX200 price index which rose by more than 8%. ▪ Whilst not over
Slide 18: 2018 Year-to-date
2018 Year-to-date ▪ Strong bounce back in performance, with outperformance of 1.8% CYTD to June pre-fees. ▪ Strong performance in financials with overweights in Macquarie and IAG outperforming and an underweight in AMP. ▪ Overweight in Resources, as dividends grew strongly at Alumina (+196%), Evolut
Slide 19: Questions
Questions www.plato.com.au 19
Slide 20: Disclaimer
Disclaimer 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 other advice. This communication is for general information only. The information in this communica
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