Don Hamson

Plato Investment Management is pleased to announce the Plato Global Shares Income Fund will be accessible as an Active ETF, quoted on the Australian Securities Exchange. The Plato Global Shares Income Fund – Active ETF (ASX: PGI2) will be admitted for quotation on Tuesday, 19 May 2026.

The Plato Global Shares Income strategy will now be available as both an unlisted Fund and an Active ETF (ASX: PGI2). PGI2 joins Plato’s existing suite of listed investment solutions, which includes the ASX-listed investment company, Plato Income Maximiser Limited (ASX: PL8), and the Plato Global Alpha Fund Complex ETF (ASX: PGA1), taking Plato to over $2 billion of FUM in their suite of listed fund solutions (total firm FUM is $23.6 billion).

PGI2 has been launched in response to increasing demand for income diversification and convenient listed access to Plato’s global income strategy. Since inception in March 2016, the strategy has delivered a net distribution yield of 5.7% p.a. after fees (4.1% p.a. excess income above the MSCI World ex Australian Index), along with a total return of 10.0% p.a. (data at April 30, 2026). The portfolio invests in a globally diversified portfolio of developed-market equities, with an active dividend rotation strategy targeting monthly income distributions.

Plato Global Shares Income Fund Lead Portfolio Manager, Daniel Pennell, said: “Australian investors are often heavily concentrated in domestic dividend payers like the big banks and miners. That’s a lot of single-economy, single-currency risk for a portfolio that’s supposed to fund someone’s retirement.

“PGI2 gives investors income exposure to sectors the ASX doesn’t offer at scale, including global healthcare, technology, and consumer staples, without giving up yield. Importantly, this strategy delivers income for clients purely from the cash dividends paid out by portfolio holdings and is not reliant on derivatives trading or capital gains realisation for income generation.”

Plato Founder and Managing Director, Dr Don Hamson, said: “We have always advocated for highly diversified income generating portfolios and PGI2 trading on the ASX is now a great solution not only for diversifying income sources, but also for investors focussed on global equities who want the additional benefit of regular income.

“Since its inception over 10 years ago, the Plato Global Shares Income Fund has delivered great long-term outcomes for clients as a stand-alone solution, or as an allocation blended with our flagship Australian equity income strategy. It utilises the same investment process – including our red flags risk management system – and the same dividend rotation strategy as our Australian income Fund, just within a broader universe of stocks.”

The Plato Global Shares Income Fund has received a ‘Recommended’ rating from Zenith Investment Partners and a ‘Recommended’ rating from Lonsec Research.

The post Plato launches its Global Shares Income Fund on the ASX as an Active ETF  appeared first on AdviserVoice.

Dr David Allen, portfolio manager of the Plato Global Alpha Fund says investors shouldn’t ignore the global macroeconomic and geopolitical turbulence that’s underscored the start to CY 2026.

“I don’t think you can deny the current macro and geopolitical uncertainty carries real investment implications. The myriad of major developments simply can’t be ignored, in fact such turbulence should now be a long-term structural consideration for investors.

Allen says the major structural shifts require a systematic approach to risk management.

“Trying to trade or time major macro and geopolitical developments is a great way to destroy your capital. Even for expert investors, it’s our strong view that attempting to forecast macroeconomic or geopolitical shocks is a poor basis for investment decision-making.

“We believe whole-of-portfolio systematic risk processes are the only way to ensure you can continue to be exposed to the exceptionally strong growth on offer in global equities, while managing risk in what really is a shifting global order”

The $3.2 billion Plato Global Alpha Fund applies daily stress tests to its portfolio and Allen says the number of scenarios the portfolios are tested against has now increased to 96 (from 57 in 2024).

“Using thousands of data points, our proprietary risk management system runs these tests, like the way systemically important banks stress-test their loan books, said Dr Allen.

“We are not making predictions about these events, and certainly not trying to time the market. We are simply investing our clients’ capital where we see exceptional long and short opportunities, while at the same time ensuring if any of the 96 stress events do occur, that capital will not be impacted by outsized drawdowns.

“For us, it should be a big concern if your global equities portfolio is not being regularly stress tested in 2026.”

Since inception in September 2021, the Plato Global Alpha Fund has returned +25.36% per annum after fees, outperforming the MSCI World by 13% per annum, with downside capture of just 62% (to 31 December 2025).

The fund now manages $3.2 billion on behalf of Australian investors.

Plato has released data from four of its current stress test scenarios, showing how company share prices would be impacted should the scenarios materialise.

1. Acceleration of U.S. rate cuts: Australian global miners to rise more

 Dr David Allen commented: “In the scenario of rapid rate cuts, gold miners, many of which are Australian, dominate the winners, though the magnitude of upside is notably smaller than 12 months ago, perhaps reflecting already elevated gold prices.”

2. Return of full-scale trade wars

Dr David Allen commented: “Trade wars have been a portfolio stress event now for several years. Of note, the threat of intensifying trade wars is back with the US and Europe locking horns over Greenland.

“European stocks face outsized declines should a full-scale trade war between the US and Europe erupt. Autos and Semis will likely bear the brunt.”

3.  Rapid AUD devaluation

Dr David Allen commented: “It is not implausible that an increasingly assertive U.S. foreign policy in the Western hemisphere encourages China to act more forcefully in its own backyard. Prediction market Polymarket currently assigns a 9% probability to a Chinese invasion of Taiwan by year-end. Following Maduro’s capture, Chinese social media lit up with suggestions that U.S. actions provided a blueprint for Taiwan, content viewed hundreds of millions of times.

“From a market perspective, Australia and the AUD would be crushed. This is an underappreciated risk, certainly for Australian investors with a strong home bias.”

4. A Significant ASX correction

Dr David Allen commented: “The ASX 200 has risen roughly 46% over the past three years, including dividends. One might reasonably assume earnings growth has been robust. In fact, aggregate ASX 200 earnings have fallen by approximately 15% over that period.

“This disconnect raises an obvious question: which stocks are most exposed if the ASX corrects sharply?”

The post Key risks for Australian equity investors in 2026  appeared first on AdviserVoice.

Daniel Pennell

A report released by Plato Investment Management has highlighted new dividend growth trends in international equities.

In the final quarter of 2024, global developed market companies paid out A$485 billion in dividends. This was an 8.3% increase vs Q4 2023 in local currency terms (or 8.5% in AUD).

“The final quarter of 2024 was the icing on the cake for a very positive year for many Australians who have global equities allocations in their income portfolios,” said Daniel Pennell, senior portfolio manager of the Plato Global Shares Income Fund.

“Looking forward, what’s very encouraging is our data shows the number of companies that cut to zero remained very low in Q4 at just 5%, while over half (57.1%) of dividend paying companies increased or initiated dividends when compared to the same quarter last year.

“This supports our ongoing house view of continued dividend strength from global equities and highlights the importance of the asset class in diversified income portfolios.”

The new Plato report shows a significant increase in large and mega-cap companies initiating or increasing dividend payouts.

“Notable regular dividend payers, including Microsoft and Exxon Mobil, increased their DPS in 2024, while businesses like Broadcom used strong earnings to pay substantial dividend increases,” said Pennell.

“2024 also saw technology giants including Meta Platforms and Alphabet pay dividends for the first time, while higher interest rates increased net interest margins leading to very strong dividend growth for financials, with large yields from JPM Chase, BoA and HSBC.

“Interestingly, although US bank yields are generally lower than those in Australia, the gap between the Commonwealth Bank and global banks is rapidly shrinking. In fact, for some banks like US Bancorp, investors can actually achieve a higher net yield by investing overseas compared to CBA.

“Looking to Europe, the yield story becomes even more compelling. Banks like Intesa Sanpaolo, Nordea Bank, Lloyds Banking Group and UniCredit offer significantly higher income, along with much some stronger recent dividend growth rates.

“So, with strong earnings and solid balance sheets likely to endure in the technology sector, and highly attractive valuations and earnings growth in international banks, we expect both the tech and financials sectors to deliver several global dividend darlings in 2025.”

Pennell added that while overall dividend risk is low, the risk in some sub industries moving into 2025 is ‘above average’.

“Our dividend cut modelling shows the chance of cuts in the diversified metals & mining sector remains elevated, reflecting negative dividend growth and challenges to commodity prices.

“Pockets of the REIT sector still signal elevated risk, for example, real estate development and operating companies. Additionally, some areas of transportation display elevated risk due to fuel prices, economic uncertainty and geopolitical tension.

“Much like in our domestic market, we are seeing a large divergence in dividend payouts within sectors globally. This highlights the continued importance of active portfolio management when it comes to income generation.”

As of 31 December 2024, the Plato Global Shares Income Fund has distributed income of 5.8% per annum since inception (1 March 2016) net of fees and taxes, with a total return of 9.8% per annum since inception.

Read the report.

The post Global equities to deliver new dividend darlings in 2025 appeared first on AdviserVoice.

Daniel Pennell

Plato Investment Management has projected strong dividend growth from global equities in FY 2025 with new sectors emerging as dividend champions.

Plato’s latest Global Income Report shows global dividend income is on the rise, with payouts from developed market equities hitting A$807 billion in the second quarter of the 2024 calendar year, a significant +6.3% increase when compared to the same period in 2023.

“This recent growth in global dividends is a very positive signal for income-seeking investors. As we enter the new financial year here in Australia, we are confident global equity income will play a significant role in diversified income-generating investment portfolios over the coming 12 months,” said Daniel Pennell, Portfolio Manager of the Plato Global Shares Income Fund.

“Our analysis shows over the past quarter, 56.8% of dividend paying companies increased or initiated dividends when compared to the same quarter last year. The number of companies decreasing payouts remained relatively constant, at just 10.6%.

“We continue to see large companies, for example Nestle, LVMH Moet Hennessy Louis Vuitton and Microsoft increase their dividends per share and distribute large dollar payouts.

“In addition, some businesses that omitted dividends in the pandemic are now back to regular distributions. One example is HSBC holdings, who in addition to the now regular dividend, paid a special dividend given the completed sale of their Canadian business to RBC.”

However, Pennell says investors need to be mindful of key shifts underway in global stock market sectors, impacting dividend payouts.

“We’re beginning to see payouts under pressure from the dividend darlings of recent years in the energy and materials sectors reflecting weaknesses in commodity prices.

“On the other hand, Communication services sector dividends have seen the most significant growth over the past quarter with dividends increasing +38%, we’ve also seen strong broad increases from Financials, the Consumer Discretionary, and IT sectors.

“Communication services got a substantial boost from large businesses that initiated dividend payments in 2024 including Alphabet and Meta, reflecting strong company performance and solid balance sheets.

“The disparity between yields from different sectors continues to demonstrate the importance of active management, and a strong risk management framework, for income-seeking investors.”

The Plato Global Shares Income Fund (Lonsec Recommended) has distributed almost 5.9% p.a. yield since inception, more than 4% p.a. above the index.

The post Tides are changing in global income appeared first on AdviserVoice.

The Plato Global Alpha Fund has been upgraded to ‘Recommended’ by the leading research house.

The Plato Global Shares Income Fund has also been upgraded to ‘Recommended’.

About The Plato Global Alpha Fund

The Plato Global Alpha Fund is a long/short global equities fund which aims to provide investors an all-weather solution that can generate alpha throughout the cycle.

The 150/50 strategy helps amplify opportunities to generate returns from long ideas, while also generating alpha from companies expected to underperform.

The Fund has delivered 18.46% p.a. after fees since inception on 1 September 2021, outperforming its benchmark (MSCI World Net Returns Unhedged Index) by 10.01% p.a. (to 30 April 2024).

Dr David Allen, Plato’s head of long/short strategies and portfolio manager of the Plato Global Alpha Fund commented:

“This thorough research into the Plato Global Alpha Fund validates our conviction in the Fund’s investment process and team. We believe the strategy can help clients generate strong outcomes in all market environments, including the current uncertain global environment by generating alpha through both long and short positions.”

About The Plato Global Shares Income Fund

The Plato Global Shares Income Fund aims to maximise retirement income, specifically for pension phase investors and SMSFs seeking to diversify their income sources.

The Fund applies Plato’s propriety investment processes to build a diverse portfolio of companies listed in developed markets that targets an income level of greater than 4% above the benchmark.

The Plato Global Shares Income Fund has delivered total income of 5.85% p.a. after fees since inception on 1 March 2016 (to 30 April 2024).

Daniel Pennell, lead portfolio manager of the Plato Global Shares Income Fund commented “We thank Lonsec for its research into our global income strategy. We believe global shares play an important role in diversified income portfolios, particularly as many Australian investors crowd into a very concentrated domestic stock market and fixed income solutions for income. Both our Australian and Global Equity income strategies provide clients a highly diversified portfolio underpinned by our proprietary dividend rotation strategy and company modelling.”

The post Plato Management announces multiple research ratings upgrades appeared first on AdviserVoice.

It is the leading research house’s inaugural rating of the Fund which has delivered a total return after fees of 11.78% per annum since inception^[1] (to 30 September 2023), outperforming its benchmark (MSCI World Net Returns Unhedged Index) by 8.5%.

Dr David Allen, Plato’s head of long/short strategies and portfolio manager of the Plato Global Alpha Fund, welcomed the independent endorsement.

“We thank Zenith for its thorough research into our strategy and team. This recommended rating validates our conviction in our investment process and the benefits that can be achieved for clients through a 150/50 fund that helps amplify opportunities to generate returns from long ideas, while also generating alpha from companies expected to underperform.” said Dr Allen.

“Our strong investment team is well positioned to capitalise on the current global market environment in which it is critical investors generate alpha through both long and short positions, following an extraordinary period of extremely low rates and low inflation.”

The Plato Global Alpha Fund aims to outperform the MSCI World Net Returns Unhedged Index by 4% p.a. (after fees) over the medium-long term.

The Fund uses an all-weather investment style that seeks to deliver consistent alpha over the cycle. Plato Investment Management’s proprietary 100+ Red Flags modelling system, which helps identify long and short ideas, is integral to the Plato Global Alpha Fund’s investment process.

———

[1] Plato Global Alpha Fund Inception Date is 1 September 2021.

The post Zenith initiates coverage of the Plato Global Alpha Fund appeared first on AdviserVoice.

Don Hamson

Plato Investment Management, a Sydney-based asset management firm with over $10 billion in assets under management and a strong focus on retirement income, says the Labor Government’s $3 billion super cap must be indexed.

“This is an enormous flaw in the current proposal. It is perplexing the Treasurer has indicated this cap will not be indexed over time,” said Dr Don Hamson, Managing Director of Plato Investment Management.

“Currently the move is expected to impact 80,000 people, or just 0.5% of super accounts with balances of over $3 million in today’s money, however we have inflation currently running at 7.8% which will erode the real value of the $3 million cap over time.

“This means a lot more than 0.5% of superannuation balances will eventually be taxed at 30%.

Dr Hamson is calling for forecasts on how many people will be impacted by this change in the future.

“How many people in the superannuation system today will be impacted by this cap at some time in their superannuation journey?

“You only need to do some basic math – if inflation ran at 4% per annum for the next 30 years, and remember inflation is currently 7.8%, a $3m cap would be equivalent to just $925,000 in today’s dollars.

“Inflation will mean that many, many more individuals will be hit by this cap in the future if it is not indexed to inflation. I think voters need to know how many people will be impacted in say 30 years’ time, not just how many are impacted now.

“The other big question for the majority of retirees and even those nearing retirement is – what other changes is this Government likely to make next?”

The post One big flaw in Jim Chalmers’ super cap plan appeared first on AdviserVoice.

That’s according to Plato Investment Management’s latest Global Income Report.

Daniel Pennell, portfolio manager of the Plato Global Shares Income Fund, says the continued post-pandemic growth in global dividends is good news for retirees and other income investors.

“After 2020’s pandemic-driven income cuts, global investors have seen strong growth in dividends across 2021 (+12.8% in AUD), again in 2022 (+15.8% in AUD), and we expect this trend to moderate in 2023 as interest rate rises bite. However, we believe global shares will continue to provide Australian investors a great source of diversified income,” said Mr Pennell.

“In Q4 we continued to see some large companies, for example Microsoft Corp, Johnson & Johnson, and Proctor & Gamble, increase their dollar payouts. In addition, businesses like Volkswagen AG have recently paid out further special dividends. “Across sectors, we’re also seeing some standouts for dividends.

The big recent increases have been from energy companies, with the sector considerably outperforming all other sectors in 2022.

“Strong balance sheets, driven by the commodity rally, enabled increased payouts from businesses including Shell, BP plc and Exxon Mobil Corp. We think this strength can continue into 2023 with energy prices likely to remain elevated.”

Pennell says active portfolio management remains critical, amid economic uncertainty.

“In the current messy global macro environment, it’s important investors are selective when it comes to dividends and pay attention to the risk of dividend traps.

“One sector we’re watching very closely for potential dividend traps is Consumer Discretionary, where yields strengthened further over the past year driven by surprisingly strong household balance sheets. But as we look to 2023, it will be interesting to see how the sector goes, given it historically struggles when we see cost of living pressures and weakening consumer sentiment.”

Plato Investment Management’s propriety Dividend Cut Model is showing an 11.2% chance of dividend cuts in global developed markets in 2023, which is below the long-term average. Plato Investment Management Level 35, 60 Margaret Street Sydney, NSW 200 1300 010 311 plato.com.au “Our modelling, which shows a benign risk of widespread dividend cuts in global developed markets, gives us great confidence in the year ahead for global dividends and continues to indicate a positive outlook for income.

“Although not significantly elevated, Real Estate and Retail are the highest risk industry groups.”

In Q4 2022, global developed markets paid out $A419 billion. Plato notes income growth was positive in AUD terms, (+6.2% v Q4 2021), although this was largely driven by currency movements, another potential benefit of global diversification.

Dividend growth in local currency terms slowed in Q4 (+0.4% v Q42021), reflecting global inflation and concerns regarding economic growth in 2023.

“The small number of companies cutting to zero in Q4 (6.9%) remains at pre pandemic levels. This supports our house view of future dividend strength. “While many investors ignore the income potential in global equities, actively managed global equities portfolios continue to be a pillar of strength for income-seeking investors, importantly, providing diversification away from the traditional Australian income stocks and helping to mitigate concentration risk,” added Mr Pennell.

The post Global equities to produce strong income in 2023, but beware of macro risks appeared first on AdviserVoice.

Don Hamson

In a first for the Australian funds management industry, Plato Investment Management has launched a global equities fund, managed with a net zero carbon footprint without the use of costly carbon credits.

The Plato Global Net Zero Hedge Fund aims to outperform the MSCI World Index, while maintaining a net zero carbon exposure using the calculation methodology recommended by the Task Force on Climate-related Financial Disclosures.

The Fund is an active extension long/short strategy that targets high carbon emitting listed companies via short positions, while taking long positions in companies with better than average carbon footprints.

Dr Don Hamson, Managing Director of Plato Investment Management, said the Fund has been launched to offer a ‘net zero now’ option for investment portfolios.

“We believe the race to net zero emissions will be the most important investment thematic over the next 30 years, and we think this unique strategy provides a way for investors to achieve net zero now, while gaining exposure to the greatest economic transition we’ll likely see in our lifetimes.

“Climate change is an issue that our team and many of our clients feel strongly about and through the Plato Global Net Zero Fund we will be able to actively play a bigger part in driving corporate change while having the ability to starve polluters of capital by shorting the most egregious emitters.

The Plato Global Net Zero Hedge Fund’s Co-Portfolio Managers are Dr David Allen Plato and Charles Lowe.

Dr Allen, who is also Plato Investment Management’s Head of Long/Short Strategies, said the strategy gains a unique edge from Plato’s established propriety quantitative systems, along with the integration of hundreds of new ESG data points.

“We know an average sized SMSF invested in the ASX 200 requires 3135 trees to get to net zero, so I think this new Fund is a game-changer for those who want a simple solution to help them generate alpha while maintaining a net zero carbon footprint.

“Importantly the strategy is underpinned by Plato’s proprietary quantitative systems which have been delivering strong outcomes for more than 15 years for investors ranging from self-funded retirees to superannuation funds.

“For example, Plato’s Red Flags Model which incorporates more than 100 ESG red flags, including some 60 environmental inputs, plays a major role in portfolio construction. We check companies for a whole range of different signals using multiple data sources, which alone aren’t that powerful, but when they emerge together in numbers, we know we have a very valuable indicator.”

Since its inception on 1st of September, 2021, the Plato Global Net Zero strategy has delivered returns of 8.29%, compared to 4.38% for the MSCI World benchmark.

The post Plato achieves ‘Net Zero Now’ with launch of new global equities strategy appeared first on AdviserVoice.

Peter Gardner

The Commonwealth Bank and Woolworths have now completed their offmarket buybacks.

CBA’s $6 billion transaction, completed October 4, enabled it to buy back approximately 67.7 million CBA shares. While the $2 billion WOW buyback, which was completed on Monday (October 18), saw the retailer buy back just over 58 million shares.

Both these transactions have proven to be a welcome windfall for Australian retirees and other lowtax investors who took part, mainly because of the tax-effective franking credits that come with offmarket buybacks.

For pension phase and tax-exempt investors, one dollar of pre-tax income from fully franked dividends is actually worth $1.43.

So, for retirees who tendered shares into CBA’s buyback (some individual tax circumstances may be different), they would have recorded an approximate after-tax profit of $14.27 or 14%, compared to the market price of CBA.

For pension-phase investors who tendered shares into WOW’s buyback, the after-tax profit realised would have been around $7.31 or 18% compared to the market price.

To reinforce the dollar value of franking credit for retirees – the CBA buyback represented a $1.94 billion franking credit windfall, while for WOW, the franking credit dollar value was $750 million.

During the August reporting season, our analysis shows approximately $15 billion in franking credits were distributed, in addition to over $38 billion in cash dividends.

Franking credits remain a critical mechanism to help many self-funded retirees make ends meet in our low-yield world and these figures highlight why it’s imperative that retirees’ equity income portfolios are managed with their unique taxation circumstances front of mind.

The Plato Income Maximiser LIC and the Plato Australian Shares Income Fund tendered the entirety of their CBA and WOW holdings into the buyback because we manage the vehicles specifically to maximise after-tax income for retirees.

Looking ahead, we think there may be more of these tax-effective buyback opportunities moving into 2022. Investors should ensure their portfolios are managed to take advantage of them.

Plato Investment Management forecasts the ASX 200 index will return a 5.2% gross yield over the coming 12 months and we think active and tax-effective portfolio management can help deliver significantly more income.

By Dr Peter Gardner, Senior Portfolio Manager

The post October brings buyback windfall for income investors appeared first on AdviserVoice.