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.

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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.

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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.

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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.”

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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.

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