Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — H1 FY2021 Earnings Presentation
26 slides from Plato Income Maximiser's earnings presentation, March 2021
Slide 1: Half Year FY2021 Results - Plato Income Maximiser Limited
COMPANY HALF YEAR FY2021 RESULTS PLATO INCOME MAXIMISER LIMITED ASX: PL8 1
Slide 2: Disclaimer
Disclaimer 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 other advice. This commun
Slide 3: Agenda
Agenda 01 PL8 Business & Performance Update 02 Market Update 03 Questions 3
Slide 4: PL8 Business & Performance Update
PL8 Business & Performance Update 4
Slide 5: PL8 investment portfolio performance
PL8 investment portfolio performance PERFORMANCE TO 31 DECEMBER 2020 AFTER FEES AND COSTS* Since Including franking Half-Year 12 months 3 years** inception** (28/4/2017) Portfolio* +13.3% +3.7% +9.3% +8.6% S&P/ASX 200 Tax Exempt +13.7% +2.4% +8.1% +8.5% Active -0.4% +1.3% +1.2% +0.1% 5 * After portf
Slide 6: Longer term performance
Longer term performance PLATO AUSTRALIAN SHARES INCOME FUND PERFORMANCE TO 31 DECEMBER 2020 AFTER FEES Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series 3.30 (incl. Franking Credits) 2.80 2.30 1.80 1.30 0.80 Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2
Slide 7: PL8 delivering high income
PL8 delivering high income 12 month realised yield* 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 0.3 2.9 4.9 FRANKING 0.0 0.9 2.0 The above chart is intended to compare the income generated by each of the identified products. This is not intended to compare the cap
Slide 8: Delivering consistent monthly income
Delivering consistent monthly income MONTHLY DIVIDENDS PAID 0.6c 0.5c 0.4c 0.3c 0.2c 0.1c 0.0c Jul-18 Jul-19 Jul-20 Jun-18 Jun-19 Jun-20 Nov-17 Apr-18 May-18 Nov-18 Apr-19 May-19 Nov-19 Apr-20 May-20 Nov-20 Dec-17 Jan-18 Feb-18 Mar-18 Aug-18 Sep-18 Dec-18 Jan-19 Feb-19 Mar-19 Aug-19 Sep-19 Dec-19 Ja
Slide 9: PL8 NTA performance breakdown for 1HFY21
PL8 NTA performance breakdown for 1HFY21 PRE-TAX NTA PER PL8 SHARE* $1.15 + $0.113 - $0.001 - $0.024 $1.10 $1.047 $1.05 $1.00 $0.959 $0.95 $0.90 $0.85 Pre-tax NTA 1 Portfolio Company Dividends paid Pre-tax NTA Jul 2020 performance expenses 31 Dec 2020 9 Source: Plato. *Excludes franking credits.
Slide 10: PL8 trading closely to NTA
PL8 trading closely to NTA TRADING AT A PREMIUM TO NTA POST LAST FEDERAL ELECTION PL8 PRICE VS. NTA SINCE LISTING $1.25 $1.15 $1.05 $0.95 $0.85 $0.75 May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Share Price Net Tangible Assets (NTA) 10 Source: Bloomberg, Pinnacle
Slide 11: Market Update
Market Update 11
Slide 12: RBA moves cash rate to new historic low of 0.1%
RBA moves cash rate to new historic low of 0.1% OFFICIAL RBA CASH RATE EXPECTATIONS – EVEN LOWER FOR LONGER RBA cash rate 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Jul-2005 Jul-2006 Jul-2007 Jul-2008 Jul-2009 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-201
Slide 13: Yields on all asset classes are falling
Yields on all asset classes are falling Plato Aussie Income Fund (gross normalised) S&P200 Gross CashRate 12 Mth Term Deposit 3yr BBB Credit 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Jun-2013 Jun-2014 Jun-2015 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Sep-2012 Dec-2012 Mar-2013 Sep-2013 Dec-201
Slide 14: Dividend outlook is improving
Dividend outlook is improving AVERAGE % CHANCE OF DIVIDEND CUTS FOR AUSTRALIAN MARKET 14 Source: Plato
Slide 15: Top dividend traps
TOP DIVIDEND TRAPS BE CAREFUL LOOKING AT HISTORICAL YIELD • COVID has impacted sectors STOCK HIST. ANNUAL YIELD % and stocks differently: (31 DEC 2020) – Tourism / Leisure Crown Casino / Flight 11.0% Centre – Consumer Discretionary G8 Education 6.7% – Resources South32 – Infrastructure 6.6% Sydney A
Slide 16: Winning by not losing - avoiding dividend traps
Winning by not losing - avoiding dividend traps AGL ENERGY UP TO 11% GROSS DIVIDEND YIELD 22.00 12.00% 20.00 11.00% 18.00 10.00% Historical Yield (%) Price 16.00 9.00% 14.00 8.00% 12.00 7.00% 10.00 6.00% Price (LHS) Historical Gross Yield (RHS) 16
Slide 17: APRA December Update re Capital Management
APRA December Update re Capital Management* “…Since July 2020, there has been an improvement in the economic outlook and stability in financial markets. For banks, there has been a strengthening in capital positions and provisioning levels, and the majority of loans that were previously granted repa
Slide 18: Bank Dividend Forecasts
Bank Dividend Forecasts IMPROVING, ALBEIT STILL LOWER THAN FY19 • Bank dividends cut an average of 60% in FY20. Bank Dividends 5 • APRA removed shackles from banks in December. 4.5 4 • FY21 Divs to increase as earnings aren’t affected by 3.5 extra provisioning and payout ratios increase, still 20- D
Slide 19: Australian Iron Ore Miners
Australian Iron Ore Miners IRON ORE PRICE KEEPS MOVING HIGHER STOCK 12MTH GROSS YIELD % 14.5% 8.2% 6.1% Source: Plato, Macrobond, Macquarie Macro Strategy, Bloomberg, as at 18th Feb 2021 using reported divs for March quarter 19
Slide 20: Australian Retailers Sales Numbers during COVID
Australian Retailers Sales Numbers during COVID MANY RETAILERS HAVE BEEN THRIVING DURING THE SHUTDOWN • Particular stocks have been benefiting by % SALES STOCK consumers diverting their discretionary INCREASE/DECREASE spend from travel to goods as they spend more time at home. +24% • Social distanci
Slide 21: Dividend Outlook
Dividend Outlook LARGE DIVIDEND PAYERS GOOD BAD UGLY 21 Source: Plato, Bloomberg, S&P200, Outlook based on Plato’s proprietary modelling and our views on the improving economy however there is no guarantee the outlook will eventuate.
Slide 22: Big Aussie income stocks doing it tough!
Big Aussie income stocks doing it tough! 6 STOCKS ACCOUNT FOR NEARLY HALF OF ALL DIVIDENDS % of Gross Dividend Income 2020 Price Performance “…Australia is poorly diversified” 22 Source: Plato, Bloomberg S&P200
Slide 23: Ampol announces off-market buy-back
Ampol announces off-market buy-back WORTH 20% AFTER TAX FOR ZERO TAX INVESTORS • A$300m off market buyback - approximately 4% of shares on issue • Worth 20% for pensioners for every share successfully tendered • 89.4% scale back Highlights value of franking credits 23 Source: Plato, Ampol announceme
Slide 24: Market Outlook
Market Outlook • Interest rates to be even lower for longer – All asset classes will deliver lower income – Equity income actually looks relatively more attractive • ALP has formally retracted its franking credit policy • Dividends have been cut, but outlook improving – APRA takes off dividend shack
Slide 25: Questions
Questions 25
Slide 26: Retirement Solutions and Income Specialists
Retirement Solutions and Income Specialists
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