Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — Shareholder Meeting (November 2018)
32 slides from Plato Income Maximiser's shareholder meeting presentation, Nov 1, 2018
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 1 November 2018
Slide 2: Agenda
For personal use only 01 Chairman’s Address Market Outlook and 02 Investment Update Agenda 03 Q&A 04 Formal Business
Slide 3: Chairman's Address
For personal use only Chairman’s Address Mr Jonathan Trollip www.plato.com.au 3
Slide 4: Overview
Chairman’s Address Overview For personal use only PL8 is an income focussed LIC which invests in Australian shares Managed by Plato Investment Management Limited (Manager) PL8 invests via the Plato Australian Shares Income Fund (Plato Fund) IPO raised $326m and listed on the ASX on 5 May 201
Slide 5: Investment Objectives
Chairman’s Address Investment Objectives For personal use only Generate annual income (including franking credits) in excess of S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax Exempt) (Benchmark)* AND Outperform (after fees) the Benchmark in total return terms including franking c
Slide 6: Company Details
Chairman’s Address Company Details For personal use only Manager Shares1 (ASX: PL8) Outstanding 296,619,760 Plato Investment Management Price $0.995 Market capitalisation $296.6m Board of Directors Which includes tax provided Jonathan Trollip (Chairman) NTA2 for on realised gains $0.992 Lorraine
Slide 7: Monthly Dividends
Chairman’s Address Monthly Dividends For personal use only The Directors are pleased that the Company has been able to achieve its stated aim to declare and pay monthly dividends with effect from October 2017 Month Dividend Month Dividend October 2017 0.45 cents per share April 2018 0.5 cents per sh
Slide 8: Company Performance
Chairman’s Address Company Performance For personal use only NTA Performance1 -0.9% annualised from listing date to 26 October 2018 (from $1.069 at inception to $0.992 at 26 October 2018, with dividends of $0.062 paid by the Company) TSR Performance2 -2.7% annualised from listing date to 31 Octo
Slide 9: Shareholder Engagement
Chairman’s Address Shareholder Engagement For personal use only Regular shareholder Weekly NTA Half & full year email updates announcement and financial results monthly updates Website Media Conference plato.com.au presentations www.plato.com.au 9
Slide 10: Market Outlook and Investment Update
For personal use only Market Outlook and Investment Update Dr Don Hamson, Managing Director, Plato Investment Management www.plato.com.au 10
Slide 11: Interest rate outlook still benign except in the US
Interest rate outlook still benign except in the US Cash rate expectations over next 5 years For personal use only Cash rate expectations 3.500 3.000 2.500 2.000 1.500 1.000 0.500 0.000 1 Year 2 Year 3 Year 4 Year 5 Year -0.500 -1.000 Aus German Japan US UK But no sign of an inverted yield curve – t
Slide 12: Income levels very low on cash and bonds
Income levels very low on cash and bonds Real income on $1m For personal use only Real Earnings Term Deposits Real Earnings Bonds $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- -$20,000 Source: Plato, RBA www.plato.com.au 12
Slide 13: Performance to September 2018
Plato Income Maximiser Limited (ASX: PL8) Performance to 30 September 2018 For personal use only Performance1 3 mth % 12 mths % Inception % 3 Total return² 1.9 15.3 8.6 Benchmark total return² 2.0 15.6 9.8 Excess total return² -0.1 -0.3 -1.2 Paid income2 2.1 7.7 5.4 Excess income2 0.3 2.0 -0.7 1 Pas
Slide 14: A challenging period for income stocks
A challenging period for income stocks For personal use only The big four banks and Telstra have significantly underperformed the market since the listing of PL8 Whilst not overweight banks all the time, individual banks and TLS performed poorly when we were overweight The bank levy, ongoing b
Slide 15: Big income stocks doing it tough
Big income stocks doing it tough! 6 stocks account for half the dividends paid in Australia For personal use only Price Performance 1.1 1 0.9 0.8 0.7 0.6 0.5 ASX200 Telstra Big 4 Banks Domestic Income is concentrated Source: Plato, Iress S&P200 www.plato.com.au 15
Slide 16: Yet almost 70% of companies are increasing dividends
Yet almost 70% of companies are increasing dividends For personal use only Dividend Changes 70% 60% 50% 40% 30% 20% 10% 0% Increases Same Decreases Source: Plato, Iress - S&P200 stocks reporting in August 2018 (65% of index) www.plato.com.au 16
Slide 17: Strong average increases despite Telstra's cut
Strong average increases despite Telstra’s cut For personal use only % Change in Dividends 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Average Median Value Weighted Source: Plato, Iress - S&P200 stocks reporting in August 2018 (65% of index), excludes special dividends www.plato.com.au 17
Slide 18: Resources stocks again dominate dividend increases
Resources stocks again dominate dividend increases For personal use only +122% +62% +91% +60% +24% Cutting dividends by 29% (50% ex special) Cutting dividends by 31% Cut dividend by 52% on low quality ore woes Source: Plato, ASX Overall market weighted dividend yield modestly www.plato.com.au 18
Slide 19: ALP franking credit proposal
ALP franking credit proposal For personal use only Proposal to eliminate the net refund of franking credits for all Australian investors other than charities and endowments, but not franking credits per se The original policy was expected to impact 1.17m individuals and superannuation funds and
Slide 20: ALP franking credit proposal: Another regulatory risk
ALP franking credit proposal: Another regulatory risk For personal use only A very poor and biased proposal Don’t panic too soon: – requires ALP to win government and – win over cross-bench Senators – currently subject to a Standing Committee on Economics Inquiry People power will win out - Jo
Slide 21: Outlook
Outlook For personal use only Interest rates to remain low with market expecting only modest rate rises Outlook for dividends from Australian shares remains solid – We continue to expect the market to deliver around 6% gross yield We expect PL8 will be able to continue to generate and pay more
Slide 22: Q&A
For personal use only Q&A Mr Jonathan Trollip www.plato.com.au 22
Slide 23: Formal Business
For personal use only Formal Business www.plato.com.au 23
Slide 24: Financial Statements
Formal Business Financial Statements For personal use only Financial Statements of the Company for the year ended 30 June 2018, together with the Directors’ Report and the Auditor’s Report as set out in the 2018 Annual Report. www.plato.com.au 24
Slide 25: Resolution 1: Re-election of Jonathan Trollip
Formal Business Resolution 1 For personal use only 1. Re-election of Jonathan Trollip as a Director To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Jonathan Trollip, who retires by rotation in accordance with rule 6.7 of the Company’s Constitut
Slide 26: Resolution - Proxies
Formal Business Resolution 1 - Proxies For personal use only Shares Voted For 20,946,225 89.40% Open 2,113,965 9.02% Against 371,217 1.58% Abstain 151,380 www.plato.com.au 26
Slide 27: Resolution 2: Re-election of Lorraine Berends
Formal Business Resolution 2 For personal use only 2. Re-election of Lorraine Berends as a Director To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Ms Lorraine Berends, who retires by rotation in accordance with rule 6.7 of the Company’s Constitut
Slide 28: Resolution - Proxies
Formal Business Resolution 2 - Proxies For personal use only Shares Voted For 20,720,354 88.43% Open 2,290,018 9.77% Against 421,035 1.80% Abstain 151,380 www.plato.com.au 28
Slide 29: Resolution 3: Adoption of the Remuneration Report
Formal Business Resolution 3 For personal use only 3. Adoption of the Remuneration Report To consider and, if thought fit, to pass the following resolution: “That the Remuneration Report of the Company for the financial year ended 30 June 2018 be adopted” www.plato.com.au 29
Slide 30: Resolution - Proxies
Formal Business Resolution 3 - Proxies For personal use only Shares Voted For 13,929,560 78.86% Open 2,292,088 12.97% Against 1,442,835 8.17% Abstain 5,868,304 www.plato.com.au 30
Slide 31: Thank you for joining us for our annual AGM
Thank you for joining us for our annual AGM For personal use only PL8 Shareholder Enquiries For general information and investment enquiries please contact the Share Registry. T: 1300 737 760 E: enquiries@boardroomlimited.com.au
Slide 32: Disclaimer
Disclaimer For personal use only Plato Investment Management Limited (ABN 77 120 730 136, AFSL No. 504616) (‘Plato’) is the investment manager of Plato Income Maximiser Limited ABN 63 616 746 215 (‘PL8’ or the ‘Company’). While PL8 and Plato believe the information contained in this communication is
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