Plato Income Maximiser Ltd. · ASX:PL8

Plato Income Maximiser — H1 FY2020 Earnings Presentation

23 slides from Plato Income Maximiser's earnings presentation, Mar 2, 2020

  1. Slide 1: Shareholder webinar reminder and presentation on half-year results

    Plato INCOME MAXIMISER Plato Income Maximiser Limited Level 35, 60 Margaret Street 2 March 2020 Sydney NSW 2000 T: 1300 010 311 E: invest@plato.com.au By Electronic Lodgement ABN 63 616 746 215 The Manager Company Announcements Office ASX Ltd 20 Bridge Street Sydney NSW 2000 Dear Shareholder, Shareh

  2. Slide 2: Company Half-Year Results

    COMPANY HALF-YEAR RESULTS PLATO INCOME MAXIMISER LIMITED ASX: PL8 For personal use only 1

  3. 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

  4. Slide 4: Agenda

    Agenda For personal use only 01 PL8 investment strategy and performance 02 Market update 03 Questions 3

  5. Slide 5: PL8 investment strategy and performance

    For personal use only PL8 investment strategy and performance 4

  6. Slide 6: PL8 investment portfolio performance

    PL8 investment portfolio performance PERFORMANCE TO 31 DECEMBER 2019 AFTER FEES AND COSTS* For personal use only Since Including Half-Year 12 Months Inception p.a.** Franking (28/4/2017) Portfolio 2.9% 24.2% 10.5% S&P/ASX200 Tax 3.8% 25.4% 10.8% Exempt Active -0.9% -1.2% -0.3% 5 *Inclusive of the ne

  7. Slide 7: Longer term performance

    Longer term performance PLATO AUSTRALIAN SHARES INCOME FUND PERFORMANCE TO 31 DECEMBER 2019 AFTER FEES For personal use only 3.30 Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) 2.80 2.30 1.80 1.30 Plato Australian Shares Income Fund Total Net Return (incl.

  8. Slide 8: PL8 delivering strong comparable returns

    PL8 delivering strong comparable returns For personal use only 12 MONTH REALISED YIELD* 9.0% 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 1.2 4.2 5.5 FRANKING 0.0 1.6 2.3 Past performance is not a reliable indicator of future performance. 7 Source: Plato. *to 31 De

  9. Slide 9: Delivering consistent monthly income

    Delivering consistent monthly income PLUS 3 CENT SPECIAL DIVIDEND PAID MAY 2019 For personal use only MONTHLY DIVIDENDS PAID 0.6c 0.5c 0.4c 0.3c 0.2c 0.1c 0.0c Only Australian LIC paying monthly fully franked dividends 8 Source: Plato. While monthly income has been consistent since April 2018, this

  10. Slide 10: PL8 NTA performance breakdown for 1HFY20

    PL8 NTA performance breakdown for 1HFY20 PRE-TAX NTA PER PL8 SHARE* For personal use only $1.15 + $0.013 - $0.001 - $0.030 $1.13 $1.106 $1.11 $1.088 $1.09 $1.07 $1.05 Pre-tax NTA Portfolio Company expenses Dividends paid Pre-tax NTA 1 Jul 2019 performance 31 Dec 2019 9 Source: Plato. *Excludes frank

  11. Slide 11: Price has closely tracked NTA

    Price has closely tracked NTA PL8 PRICE VERSUS NTA SINCE LISTING For personal use only $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 Share Price Net Tangible Assets (NTA) 10 Source: Plato, IRESS. Past performance is illustrati

  12. Slide 12: Market Update

    11 For personal use only Market Update

  13. Slide 13: Cash rates are very low for an extended period

    Cash rates are very low for “an extended period” OFFICIAL RBA CASH RATE EXPECTATIONS For personal use only “It is reasonable to expect that an extended period of low interest rates will be required in Australia ...” Philip Lowe, RBA Governor: Monetary Policy Decision 3 September 2019. 12 Source: Mac

  14. Slide 14: Safe assets lose you money

    Safe assets lose you money NEGATIVE REAL RATES OF RETURN For personal use only Real Earnings on $1m $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- -$20,000 -$40,000 -$60,000 1990 1992 1993 1994 1995 1996 1997 1998 1999 1991 2000 2002 2003 2004 2005 2006 2007 2008 2009 1982 1983 1984 1

  15. Slide 15: Don't forget the franking!

    Don’t forget the franking! S&P/ASX 300 1 JULY 2005 TO 31 DECEMBER 2019 For personal use only $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Jul-2005 Jul-2006 Jul-2007 Jul-2008 Jul-200

  16. Slide 16: Tax effective buy-backs are very advantageous

    Tax effective buy-backs are very advantageous QANTAS BUYBACK – WORTH 12% AFTER TAX FOR ZERO TAX INVESTORS For personal use only • A$443M OFF MARKET BUYBACK – 5.1% OF SHARES ON ISSUE • WORTH 12% FOR PENSIONERS, 85% SCALE BACK, 5.2BPS AFTER TAX AT PORTFOLIO LEVEL Highlights value of franking credits 1

  17. Slide 17: 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 Price Performance Income 2019 1.20 1.10 1.00 0.90 0.80 0.70 0.60 BHP CBA Westpac NAB ANZ Rio Tinto Other ASX200 Telstra Big 4 Banks “…Australia is poorly diversified”

  18. Slide 18: Largest Contributors to Income

    Largest Contributors to Income YEAR TO 31 DECEMBER 2019 For personal use only Top 10 Contributors to Excess Income Investment Reasoning (Last 12mths) Excess Income Return Capital Income Stock Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Commonwealth 0.40 18.9 10.4 8.5    Bank Rotation We

  19. Slide 19: Largest Contributors to Active Performance

    Largest Contributors to Active Performance YEAR TO 31 DECEMBER 2019 For personal use only Top 10 Contributors To Active Performance Investment Reasoning (Last 12mths) Active Return Capital Income Stock Performance Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Magellan Good business momentum

  20. Slide 20: Dividend Traps

    Dividend Traps YEAR TO 31 DECEMBER 2019 For personal use only Dividend Traps Investment Reasoning Div’d Cut Return Stock Date of Divd Yield Runup Value Momentum Reasoning (%) (%) Poor business momentum, suffering after royal AMP 27-Feb-19 -72% -0.2    commission troubles. Poor business momentum,

  21. Slide 21: Winning by not losing - avoiding dividend traps

    Winning by not losing - avoiding dividend traps AMP UP TO 15% GROSS HISTORICAL YIELD For personal use only AMP 6.00 16.00% 14.00% 5.00 12.00% 4.00 Historical Yield (%) 10.00% Price 3.00 8.00% 6.00% 2.00 4.00% 1.00 2.00% 0.00 0.00% Jan-2018 Mar-2018 May-2018 Jul-2018 Sep-2018 Nov-2018 Jan-2019 Mar-20

  22. Slide 22: Update on results season February 2020

    Update on results season February 2020 SIMILAR THEMES TO AUGUST 2019 For personal use only Change in Dividend pcp • Strong results from JB Hi Fi in retail, Resmed 12.0% and CSL, iron ore miners 10.0% • Solid CBA result, dividend maintained, only 8.0% bank not to cut so far in this cycle 6.0% • Divid

  23. Slide 23: Thank You

    22 For personal use only THANK YOU Questions

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