Plato Income Maximiser Limited (ASX:PL8), a new Australian shares Listed Investment Company (LIC) with a high-income focus, has just launched.
The LIC is managed by Plato Investment Management Limited (Plato) and will invest in an actively managed and diversified portfolio of Australian equities. The LIC has dual objectives:
- To generate excess yield over the benchmark and
- Outperform the benchmark in total returns net of fees over 3-5 years
The Company also seeks to pay monthly dividends once a sufficient profit reserve has been built up.
PL8 is the first LIC targeting to pay monthly, fully-franked dividends, which will appeal to investors who require a dependable income stream from their investment portfolio, but want to avoid eating into their capital as they manage longevity risk.
The LIC’s investment strategy is the same as the one employed by Plato in the management of the Plato Australian Shares Income Fund (Fund). The Fund has delivered 9.0% p.a. yield along with a total return of 14% p.a. since inception to 31 December 2016*.
PL8 gives investors access to this same strategy via the convenience of an exchange-traded product.
*Income and total return are after fees and costs, grossed up for franking credits. Performance data is to 31 December 2016 and inception date is 9 September 2011. Past performance is not a reliable indicator of future performance.
Don has over 25 years investment management experience and founded Plato Investment Management Limited in 2006. He has a PhD in Finance and a Bachelor of Commerce with First Class Honours from UQ, and a University Medal.