Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — Shareholder Meeting (November 2017)
34 slides from Plato Income Maximiser's shareholder meeting presentation, Nov 2, 2017
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 2 November 2017
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: Chairman's Address: Overview
Chairman’s Address Overview For personal use only ▪ PL8 is an income focussed LIC which invests in Australian shares ▪ The first LIC that aims to pay monthly franked dividends ▪ IPO raised $326m and listed on the ASX on 5 May 2017 ▪ Managed by Plato Investment Management Limited (Manager) ▪ PL8 Inve
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’) ▪ Outperform (after fees) the Benchmark in total return terms including franking
Slide 6: Company Details
Chairman’s Address Company Details For personal use only Manager Shares2 (ASX: PL8) Outstanding 296,283,408 Plato Investment Management Price $1.10 Market capitalisation $326m Board of Directors ▪ Jonathan Trollip1 (Chairman) NTA3 Which includes tax provided for on realised gains $1.027 ▪ Katrina On
Slide 7: Monthly Dividends
Chairman’s Address Monthly Dividends For personal use only The PL8 Board declared its first three monthly fully franked dividends of 0.45 cents per share payable in each of October, November and December 2017. October November December Amount: 0.45 cents per share 0.45 cents per share 0.45 cents per
Slide 8: Company Performance
Chairman’s Address Company Performance For personal use only NTA Performance1 ▪ -3.9% from listing date to 30 September 2017 (from $1.069 at inception to $1.027) TSR Performance2 ▪ 0.0% from listing date to 30 September 2017 (the share price was $1.10 compared to an issue price of $1.10, with no div
Slide 9: Investment Portfolio Performance to September 2017
Chairman’s Address Investment Portfolio Performance to 30 September 2017 For personal use only Investment Portfolio Performance1 1 month % 3 months % Inception %4 Total return² 0.7 0.2 -2.4 Benchmark total return² 0.2 1.2 -1.2 Excess total return² 0.5 -1.0 -1.2 Income accrued but not yet paid3 4.3 4
Slide 10: Shareholder Engagement
Chairman’s Address Shareholder Engagement For personal use only Regular shareholder Monthly NTA Half & full year email updates announcement financial results Website Media Industry conferences plato.com.au www.plato.com.au 10
Slide 11: 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 11
Slide 12: Retirees Face An Income Crisis!
For personal use only Retirees Face An Income Crisis! What have markets told us and what is the future outlook? www.plato.com.au 12
Slide 13: Short term market interest rate expectations
Short term market interest rate expectations Rates to rise gently For personal use only 2.500 Australia 2.000 US 1.500 1.000 UK 0.500 0.000 Japan German -0.500 -1.000 1 Year 2 Year 3 Year 4 Year 5 Year Source: Plato, Bloomberg using market yield curves as at 18 Oct 2017 www.plato.com.au 13
Slide 14: Australian shares gross income still looks attractive
Australian shares gross income still looks attractive For personal use only Bank Bills Term Deposits (1 year) All Ords Yield (Incl Franking) Source: RBA, Iress, Plato www.plato.com.au 14
Slide 15: Income is still hard to find
Income is still hard to find Plato 1 year forecast income FY17/18 For personal use only 5.7% 4.7% 2.6% 2.3% 1.9% Global Equities 1 Year Term 10 year Australian Australian REITs Australian Deposits Bonds Equities (incl franking) Source: Plato, RBA www.plato.com.au 15
Slide 16: Performance Attribution / Income & Outlook
For personal use only Performance Attribution / Income & Outlook www.plato.com.au 16
Slide 17: Investment Portfolio Performance to September 2017
Investment Portfolio Performance to 30 September 2017 For personal use only Investment Portfolio Performance1 1 month % 3 months % Inception %4 Total return² 0.7 0.2 -2.4 Benchmark total return² 0.2 1.2 -1.2 Excess total return² 0.5 -1.0 -1.2 Income accrued but not yet paid3 4.3 4.3 4.8 Excess frank
Slide 18: Plato Australian Shares Income Fund Performance to September 2017
Plato Australian Shares Income Fund Performance to 30 September 2017 For personal use only 12 months 3 years Since 3 month return* return* return* p.a. inception** return Plato Australian 0.4% 10.3% 9.3% 13.7% Shares Income Fund Benchmark*** 1.2% 10.8% 8.7% 11.6% Active -0.8% -0.5% +0.6% +2.1% * Bef
Slide 19: PL8 investments versus market and key income stocks
PL8 investments versus market and 2 key income stocks For personal use only 1.2 1.15 1.1 1.05 1 0.95 0.9 28/04/2017 28/05/2017 28/06/2017 28/07/2017 28/08/2017 28/09/2017 PL8 Investment Portfolio Performance (Net after 82bps fee) S&P/ASX 200 Accumulation - Franked TLS Source: Plato, Iress CBA www.pl
Slide 20: August 2017 reporting
August 2017 reporting A tough month for two income stocks For personal use only 9.5%, in response to AUSTRAC issue Net of cash dividend 6.7% 10.5%, dividend cut from 31c fully franked, to 22c fully franked next year Net of cash dividend 6.7% Highlights the benefit of holding a diversified portfolio
Slide 21: But overall a good season for dividends
But overall a good season for dividends For personal use only Dividend changes 80% 70% ▪ 129 dividend payers reported 67% that we track - representing 63% 60% of ASX/S&P200 50% ▪ Average increase 18% (16% when excluding initiations) and 40% median increase 5% 30% ▪ Even higher increases on a value 2
Slide 22: But overall a good season for dividends
But overall a good season for dividends For personal use only Top 10 dividend increases Notable non-resource dividend dominated by resource stocks changes +514% +54% +230% +52% +193% +39% +133% +26% +108% +26% On an index weighted basis net of 0.3% in market yield www.plato.com.au 22
Slide 23: 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 – Manager continues to expect the market to deliver around 6% gross yield ▪ Manager expects PL8 will be able to continue to generate
Slide 24: Q&A
For personal use only Q&A Mr Jonathan Trollip www.plato.com.au 24
Slide 25: Formal Business
For personal use only Formal Business www.plato.com.au 25
Slide 26: Financial Statements
Formal Business Financial Statements For personal use only ▪ Financial Statements of the Company for the year ended 30 June 2017, together with the Directors’ Report and the Auditor’s Report as set out in the 2017 Annual Report. www.plato.com.au 26
Slide 27: Resolution 1: Re-election of Don Hamson
Formal Business Resolution 1 For personal use only 1. Re-election of Don Hamson as a Director ▪ To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Don Hamson, who retires by rotation in accordance with rule 6.7 of the Company’s Constitution and, bei
Slide 28: Resolution - Proxies
Formal Business Resolution 1 - Proxies For personal use only Shares Voted For 6,450,052 29.01% Open 15,561,079 70.00% Against 219,000 0.99% Abstain 4,147,480 www.plato.com.au 28
Slide 29: Resolution 2: Re-election of Alex Ihlenfeldt
Formal Business Resolution 2 For personal use only 2. Re-election of Alex Ihlenfeldt as a Director ▪ To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Alex Ihlenfeldt, who retires by rotation in accordance with rule 6.7 of the Company’s Constitutio
Slide 30: Resolution - Proxies
Formal Business Resolution 2 - Proxies For personal use only Shares Voted For 6,349,452 28.67% Open 15,561,079 70.28% Against 232,900 1.05% Abstain 4,234,180 www.plato.com.au 30
Slide 31: 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 2017 be adopted” www.plato.com.au 31
Slide 32: Resolution - Proxies
Formal Business Resolution 3 - Proxies For personal use only Shares Voted For 4,452,074 20.88 Open 15,589,507 73.14% Against 1,275,588 5.98% Abstain 4,760,441 www.plato.com.au 32
Slide 33: Thank you for joining us for our inaugural AGM
Thank you for joining us for our inaugural 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 34: Disclaimer
Disclaimer For personal use only Note: Past performance is not a reliable indicator of future performance, and investment returns of less than one year should not be relied upon as any guide to future performance. This communication has been prepared by Plato Investment Management Limited (Plato) fo
Plato Income Maximiser — Shareholder Meeting (November 2017) on 6ix