Don Hamson
Plato Income Maximiser Limited (ASX: PL8), the first Listed Investment Company (LIC) managed by Plato Investment Management Limited (Plato) has officially launched last week.
The initial public offering (IPO) offers Australian investors the opportunity to invest in an actively managed, diversified portfolio of Australian shares with an income focus.
Plato Income Maximiser Limited’s investment strategy is modelled on the successful Plato Australian Shares Income Fund (the Fund) strategy, which is designed specifically with SMSF and pension-phase investors in mind. The Fund has delivered 9.0% p.a. income and a 14.0% p.a. total return since inception to 31 December 2016*.
The IPO is seeking to raise up to $220 million, with the ability to accept an additional $110 million in over subscriptions. The IPO has an issue price of $1.10 per share. Additionally, investors will receive 1 option for every 1 share issued under the offer.
The LIC was launched in response to investor demand for an ASX-listed product that targets high sustainable income paid monthly.
Dr Don Hamson, Managing Director of Plato Investment Management said: “In a low-return, low-rate market, retirees are looking for specialist, high-yield equities strategies to supplement traditional sources of income like cash and fixed income.
“PL8 is the first Australian 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.
“In this context, PL8 solves a common investor problem, and does so in an easily accessible product that is exchange-traded,” Dr Hamson added.
The LIC’s investment portfolio aims to generate annual income, including franking credits, in excess of the S&P/ASX200 Franking Credit Adjusted Daily Total Return Index (Benchmark), and outperform, after fees, the Benchmark in total return terms including franking credits over typically 3-5 years.
The LIC will have a Board of Directors that are majority independent, including Independent Directors Jonathan Trollip (Chairman), Katrina Onishi and Lorraine Berends, and Non-Independent Directors Dr Don Hamson and Alex Ihlenfeldt.
PL8’s offer period is open until 21 April 2017. Trading on the ASX is expected to commence on 5 May 2017.
Seed Partnerships Pty Limited are the corporate advisers to the LIC. The Joint Lead Managers of the Offer are CBA, Ord Minnett and Taylor Collison, and the Co-Managers are Finclear and Wilsons.
*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.
Key dates
ASX Code : PL8 (Shares), PL8O (Options)
Offer opens: 9 March 2017
Broker Firm and Priority Allocation closes: 13 April 2017
General Offer closes: 21 April 2017
Application price per share: $1.10
Option exercise price: $1.10
Listing date on ASX: 5 May 2017