Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — Investor Presentation (August 2019)
20 slides from Plato Income Maximiser's investor presentation, Aug 20, 2019
Slide 1: Webinar presentation cover letter
Plato Income Maximiser Limited Level 35, 60 Margaret Street 20 August 2019 Sydney NSW 2000 T: 1300 010 311 E: invest@plato.com.au For personal use only ABN 63 616 746 215 By Electronic Lodgement The Manager Company Announcements Office ASX Ltd 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Webinar
Slide 2: Plato Income Maximiser - Webinar
PLATO INCOME MAXIMISER - WEBINAR ASX: PL8 For personal use only 1
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Plato Income Maximiser Limited (ACN 616 746 215) (Company) and Plato Investment Management Limited (ACN 120 730 136) (Manager). The information contained in this presentation is for information purposes only and has been prepared for use in conjuncti
Slide 4: Plato Income Maximiser Limited
PL8 PLATO INCOME MAXIMISER LIMITED For personal use only First and only Based on the Designed specifically Australian Listed investment strategy of with retiree investors Investment Company the Plato Australian in mind (pension phase (LIC) paying monthly Shares Income Fund superannuation or low divi
Slide 5: PL8 Entitlement Offer
PL8 Entitlement Offer DETAILS OF THE OFFER For personal use only Existing shareholders New shareholders Offer price: $1.10 • Entitlement offer of 1 new share for • Can apply for new shares in the every 1.6 existing shares shortfall offer Offer size: $204m • Ability to apply for more shares via • Siz
Slide 6: Highlights of the offer
Highlights of the offer PLATO INCOME MAXIMISER LIMITED For personal use only Investors in the Greater size means Entitlement and Shortfall enhanced liquidity on the offer will be eligible for ASX and a reduction in the September dividend total costs to investors (0.5c) All of the Offer costs are Acc
Slide 7: Finding income just got harder
Finding income just got harder OFFICIAL RBA CASH RATE EXPECTIONS For personal use only Impacts income from cash, bonds, term deposits and bank bill linked investments (e.g. hybrids) 6 Source: Bloomberg, Macquarie Macro Strategy June 2019
Slide 8: Australian dividends have been remarkably stable
For personal use only 7 20 % 10 % 15% 25% 0% 5% Dec-80 Jul-81 Feb-82 Sep-82 Apr-83 Nov-83 Jun-84 Jan-85 Aug-85 Mar-86 Oct-86 May-87 Dec-87 Jul-88 Feb-89 Sep-89 Apr-9 0 Nov-90 Jun-91 Jan-92 Bank Bills Aug-92 Source: Plato, RBA, S&P, invest $100k at the start of the year Mar-93 Oct-9 3 May-94 Dec-94 J
Slide 9: Large income stocks have been doing it tough
Large income stocks have been doing it tough PRICE PERFORMANCE For personal use only 1.10 1.05 1.00 0.95 0.90 0.85 0.80 0.75 0.70 0.65 0.60 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19
Slide 10: FY2019: A dividend bonanza in Australia
FY2019: A dividend bonanza in Australia BUT NOT IN THE USUAL PLACES! For personal use only • Banks and Telstra have maintained or cut dividends • Resources have been massive dividend payers: • Buy-backs and specials significant • Strong increases from Alumina (+65%) Fortescue (+177%), RIO (+158%) in
Slide 11: Plato Investment Process
Plato Investment Process DIVIDEND ROTATION COMBINED WITH GOOD VALUE QUALITY LONG TERM HOLDINGS PROVIDES INCOME PLUS GROWTH For personal use only Dividend + Franking + Run up = Sustainable capture capture capture Income Good value, quality long term holdings: Good Value – Earnings, cash flow, EBITDA
Slide 12: Why an LIC is perfect for equity income investing?
Why an LIC is perfect for equity income investing? For personal use only Trust structure (including ETFs) Company structure Must distribute all income and franking each Enables income and franking credits to be financial year Vs “banked” Makes it impossible to smooth income and Directors determine t
Slide 13: 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 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19
Slide 14: PL8 delivering high ordinary income
PL8 delivering high ordinary income 12 MONTH REALISED YIELD* For personal use only 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 Fund PL8 CASH 1.5 4.3 5.8 FRANKING 0.0 1.7 2.5 13 Source: Plato. *to 30 June 2019, excluding the 3c special dividend in May 2019
Slide 15: PL8 delivering high income – including special
PL8 delivering high income – including special 12 MONTH REALISED YIELD* For personal use only 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% RBA Cash Rate S&P/ASX 200 PL8 Fund CASH 1.5 4.3 8.6 FRANKING 0.0 1.7 3.7 14 Source: Plato. *to 30 June 2019, including the 3c special dividend in May 2019
Slide 16: 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 $0.70 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Share Price Net Tangible Assets (NTA) ALP franking policy impacted trading March 2018 to May 2019 15 Source:
Slide 17: PL8 traded relatively strongly versus peers
PL8 traded relatively strongly versus peers LARGELY TRADED ABOVE THE AVERAGE LIC DISCOUNT TO NTA For personal use only PL8 vs Aus Equity LIC average discount to NTA 10.00% 5.00% 0.00% Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-
Slide 18: Summary of PL8 features
Summary of PL8 features PROVIDES ACCESS TO AN ACTIVELY MANAGED DIVERSIFIED PORTFOLIO OF INCOME STOCKS For personal use only Only LIC paying Specifically designed Access via one simple regular monthly fully for retirees and low-tax trade franked dividends investors Delivering regular income for inves
Slide 19: Benefits of the offer to shareholders
Benefits of the offer to shareholders For personal use only More diverse Larger capitalisation Lower management shareholder base will will attract greater expense ratio due to potentially facilitate research coverage economies of scale greater liquidity and reduced share price volatility Access to i
Slide 20: Thank you & Questions?
For personal use only Thank you & Questions? plato.com.au/lic-overview/ 19
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