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.

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?”

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.

Don Hamson

Investors, and particularly Australia’s 3.8 million retirees, should review their income generating investment strategy in light of the RBA’s third  rate cut decision, according to Australian funds manager Plato Investment Management (Plato).

While beneficial to homeowners and people trying to buy a home, rate cuts also see Australian retirees receive less income from their floating rate income investment assets. Even before today’s decision, interest rates have fallen significantly in Australia.  According to the RBA, 1 year term deposit rates have fallen 70bp already this year, to 1.45% at the end of August.  10 Year Commonwealth Bond yields have fallen even further, dropping from 2.32% at the end of 2018 to around 1% at the end of September.  With the latest Consumer Price index of inflation registering 1.6%, that means that interest rates are now negative in real terms from overnight cash through to 10 year bonds.  After inflation, not to mention taxes, investors are going backwards.

Don Hamson, Managing Director of Plato, said some market economists were predicting that the Reserve Bank of Australia may cut two more times over the next year, although personally he is not in favour of further interest rate cuts.

“Returns on cash, term deposits and products linked to bank bill rates will likely continue to fall under that scenario. Many income-related products, like income securities or bank hybrids are priced at a margin to bank bill rates, and we have already seen 90-day bank bill rates fall more than 1% this year, which is already crimping their income.

“Mortgage holders will benefit from this rate cut, although I don’t expect banks to fully pass on all of the cut.  On the other hand retirees living off cash-linked income are already struggling to make ends meet, and this cut will further crimp their income.  So, it is very timely for retirees to reconsider their income generating asset mix.  Thankfully, given the somewhat surprising election result, retirees can continue to bank on receiving franking credits from Australian share investments.”

Dr Hamson notes that at a time when interest rates are hitting all-time lows in Australia, dividends paid by Australian companies have never been stronger.  Despite a lot of negative commentary around the recent August reporting period, Plato still calculated that the dividends paid by companies that it follows increased on average by 9% compared to the same time last year, with the median increase being 3%.

However, not all investors and retirees have benefited from this dividend bonanza. Many, retirees in particular, need to reassess their income generating investments to ensure they are invested in the best possible income generating equites, not just the big four banks and Telstra, Dr Hamson says

“Dividend increases, for example, have been largely concentrated in the resources sector, with traditional income stocks like the big four banks and Telstra either maintaining or cutting dividends.

“A cut in interest rates – while it won’t lead to an increase in dividend income – may lead to increased investor demand for dividend paying stocks, potentially raising the capital values of some.”

Dr Hamson adds that falling interest rate expectations have been the major driver of higher share prices in 2019.

Dr Hamson also welcomes the Morrison government’s retirement income review.  “Retirement income offerings tended to be a one size fits all approach. With over five million baby boomers moving into retirement, the need has never been greater for new and innovative retirement income solutions for Australia’s retirees.”

Plato is a leader in retirement income generation and highlights how active dividend investing can provide a regular income plus capital gain from the underlying share. Its listed investment company (LIC), PL8, is the only LIC to pay regular monthly dividends.

Don Hamson

With official cash rates and bond yields plumbing to record lows, investors are increasingly looking for dividend payments as a replacement for their cash and fixed interest income.

To help meet this increased demand, Plato Income Maximiser Limited (PL8 or the Company) today announced a $200 million entitlement offer. PL8 is the only Listed Investment Company (LIC) to pay regular monthly fully franked dividends.

The offer consists of 1 new share for every 1.6 ordinary shares held by existing eligible shareholders on the record date of 13 August 2019. There will also be an over-subscription facility for existing shareholders to apply for shares in excess of their entitlement.

Shares not taken up by existing shareholders will be offered to new retail and institutional investors at $1.10 each in the Broker Firm Shortfall Offer.  The Closing Date for both the Entitlement Offer and the Broker Firm Shortfall Offer is 30 August 2019.

New shares issued will trade in the week commencing 9 September and will be entitled to the already announced dividend of $0.005 payable on 30 September.

“Benefits from the offer include a larger market capitalisation which is expected to attract greater research coverage and provide more liquidity, a more diverse shareholder base and a lower management expense ratio” said Don Hamson, Director of Plato Income Maximiser and Founder and Managing Director of Plato Investment Management the Manager of PL8.

The Company aims to continue paying regular monthly dividends. PL8 paid 12 monthly 0.5c fully franked dividends for the year to June 2019 equating to a dividend yield of 5.5% or 7.8% including franking credits on the offer price of $1.10. Including its special dividend of 3c a share, the dividend yield was 8.2% and 11.7% with franking credits.

Dr Hamson added that it is timely for retirees, in particular, to reconsider their income generating asset mix: “It is becoming increasingly difficult for retirees to live off the income from cash and fixed income given current RBA cash rates at a record low 1% and 10 year Commonwealth Government Bonds trading at a yield below 1%.

“Retirees are struggling to make ends meet and should reconsider their income sources to look at active dividend investing.

“Given the recent election result, retirees can continue to bank on receiving franking credits from Australian share investments and should consider taking advantage of the higher income on offer from them” he said today.

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Don Hamson

With official cash rates and bond yields plumbing to record lows, investors are increasingly looking for dividend payments as a replacement for their cash and fixed interest income.

To help meet this increased demand, Plato Income Maximiser Limited (PL8 or the Company) today announced a $200 million entitlement offer. PL8 is the only Listed Investment Company (LIC) to pay regular monthly fully franked dividends.

The offer consists of 1 new share for every 1.6 ordinary shares held by existing eligible shareholders on the record date of 13 August 2019. There will also be an over-subscription facility for existing shareholders to apply for shares in excess of their entitlement.

Shares not taken up by existing shareholders will be offered to new retail and institutional investors at $1.10 each in the Broker Firm Shortfall Offer.  The Closing Date for both the Entitlement Offer and the Broker Firm Shortfall Offer is 30 August 2019.

New shares issued will trade in the week commencing 9 September and will be entitled to the already announced dividend of $0.005 payable on 30 September.

“Benefits from the offer include a larger market capitalisation which is expected to attract greater research coverage and provide more liquidity, a more diverse shareholder base and a lower management expense ratio” said Don Hamson, Director of Plato Income Maximiser and Founder and Managing Director of Plato Investment Management the Manager of PL8.

The Company aims to continue paying regular monthly dividends. PL8 paid 12 monthly 0.5c fully franked dividends for the year to June 2019 equating to a dividend yield of 5.5% or 7.8% including franking credits on the offer price of $1.10. Including its special dividend of 3c a share, the dividend yield was 8.2% and 11.7% with franking credits.

Dr Hamson added that it is timely for retirees, in particular, to reconsider their income generating asset mix: “It is becoming increasingly difficult for retirees to live off the income from cash and fixed income given current RBA cash rates at a record low 1% and 10 year Commonwealth Government Bonds trading at a yield below 1%.

“Retirees are struggling to make ends meet and should reconsider their income sources to look at active dividend investing.

“Given the recent election result, retirees can continue to bank on receiving franking credits from Australian share investments and should consider taking advantage of the higher income on offer from them” he said today.

The post Plato Income Maximiser announces $200m entitlement offer to meet demand for income appeared first on AdviserVoice.

Don Hamson

With official cash rates and bond yields plumbing all-time lows, investors of all types are increasingly looking for dividend payments as a replacement for regular income from term deposits and/or bonds.

While a decade ago, term deposits were generally producing higher returns than dividend income, falling cash rates mean dividends are now much higher, notes Plato Investment Management (Plato).

Don Hamson, Founder and Managing Director of Plato, warned investors to be wary of potential dividend traps, where yields appear to increase as underlying share prices weaken.

“Do not simply invest in the highest-yielding stocks,” he said today. “Consider how the share prices of some dividend paying stocks have performed over the past 12 to 18 months.  If the reason a stock is trading on a high yield is because its share price has collapsed, this is usually not a good sign, and could signal the stock is a dividend trap.  These are stocks that trade on high historic yields, but subsequently cut their dividends.”

Dr Hamson said investors should instead focus on stocks that provide both consistent dividend payouts and underlying capital growth, rather than one or the other. “Avoiding yield traps is key to income investing today,” he said. “We have refined our own active income investing process to attempt to avoid these.” 

Dr Hamson said it is timely for retirees, in particular, to reconsider their income generating asset mix. While the recent Reserve Bank of Australia rate cuts were beneficial to homeowners and people trying to buy a home, rate cuts also see Australian retirees receive less income from their floating rate income investment assets.

“Many income-related products, like income securities or bank hybrids are priced at a margin to bank bill rates, and have seen their income fall,” he said.

“Retirees living off cash-linked income will struggle to make ends meet. So, it is very timely for retirees to reconsider their income generating asset mix.  Thankfully, given the recent election result, retirees can continue to bank on receiving franking credits from Australian share investments.”

Dr Hamson notes that at a time when interest rates are hitting all-time lows in Australia, dividends paid by Australian companies have never been stronger. (The Plato Australian Shares Income Fund has distributed a record amount of dividends the past financial year with gross distributions including franking credits after fees of more than 16%.)

Plato is a leader in retirement income generation and highlights how active dividend investing can provide a regular income plus capital gain from the underlying share. Its listed investment company (LIC), PL8, is the only LIC to pay regular monthly dividends.

Don Hamson

Australia’s 3.8 million retirees should review their income generating investment strategy in light of the RBA’s second rate cut decision yesterday, according to Australian funds manager Plato Investment Management (Plato).

While beneficial to homeowners and people trying to buy a home, rate cuts also see Australian retirees receive less income from their floating rate income investment assets.

Australian overnight cash rates and 10-year government bond yields were already trading at historical all-time lows before the RBA’s move today, with 10-year bond yields recently dipping below 1.4%. 

Don Hamson, Managing Director of Plato, said some market economists were predicting that the Reserve Bank of Australia may cut one to two more times over the next year, bringing rates below 1%.

“Returns on cash, term deposits and products linked to bank bill rates will likely continue to fall under that scenario. Many income-related products, like income securities or bank hybrids are priced at a margin to bank bill rates, and we have already seen 90-day bank bill rates fall almost 1% year, which is already crimping their income. 

“Retirees living off cash-linked income will struggle to make ends meet. So, it is very timely for retirees to reconsider their income generating asset mix.  Thankfully, given the somewhat surprising election result, retirees can continue to bank on receiving franking credits from Australian share investments.”

Dr Hamson notes that at a time when interest rates are hitting all-time lows in Australia, dividends paid by Australian companies have never been stronger. (The Plato Australian Shares Income Fund has distributed a record amount of dividends the financial year that has just ended with gross distributions including franking credit after fees of more than 15%.)

“Ironically, the ALP threat to franking has actually caused some companies to flush out excess franking credits prior to the end of last financial year, providing Australian income investors – including retirees – with a record level of dividends.”

However, not all investors and retirees have benefited from this dividend bonanza. Many, retirees in particular, need to reassess their income generating investments to ensure they are invested in the best possible income generating equites, not just the big four banks and Telstra, Dr Hamson says

“Dividend increases, for example, have been largely concentrated in the resources sector, with traditional income stocks like the big four banks and Telstra either maintaining or cutting dividends.

“A cut in interest rates – while it won’t lead to an increase in dividend income – will also lead to increased investor demand for dividend paying stocks, raising the capital value of some.”

Dr Hamson adds that retirement income offerings tended to be a one size fits all approach. With over five million baby boomers moving into retirement, the need has never been greater for new and innovative retirement income solutions for Australia’s retirees.

“Active dividend income strategies should be a key part of the discussion about retirement income, given that dividend income can be four times that of term deposits.”

Plato is a leader in retirement income generation and highlights how active dividend investing can provide a regular income plus capital gain from the underlying share. Its listed investment company (LIC), PL8, is the only LIC to pay regular monthly dividends.

Don Hamson

Australia’s 3.8 million retirees should review their income generating investment strategy in light of the RBA’s decision to lower interest rates by 25bp today, according to Australian funds manager Plato Investment Management (Plato).

While beneficial to homeowners and people trying to buy a home, rate cuts also see Australian retirees receive less income from their floating rate income investment assets.

Australian overnight cash rates and 10-year government bond yields were already trading at historical all-time lows before the RBA’s move today, with 10-year bond yields recently dipping below 1.5%.

Don Hamson, Managing Director of Plato, said some market economists were predicting that the Reserve Bank of Australia may cut two to three more times over the next year.

“Returns on cash, term deposits and products linked to bank bill rates will likely continue to fall under that scenario. Many income-related products, like income securities or bank hybrids are priced at a margin to bank bill rates, and we have already seen 90-day bank bill rates fall more than 60 basis points this year, which is already crimping their income.

“Retirees living off cash-linked income will struggle to make ends meet. So, it is very timely for retirees to reconsider their income generating asset mix. Thankfully, given the somewhat surprising election result, retirees can continue to bank on receiving franking credits from Australian share investments.”

Dr Hamson notes that at a time when interest rates are hitting all-time lows in Australia, dividends paid by Australian companies have never been stronger. (The Plato Australian Shares Income Fund has distributed a record amount of dividends this financial year, having distributed a 10% cash yield, plus over 4% of franking credits, in its September, December and March quarterly distributions, giving gross distributions after fees of more than 14%.)

“Ironically, the ALP threat to franking has actually caused some companies to flush out excess franking credits prior to the end of this financial year, providing Australian income investors – including retirees – with a record level of dividends.”

However, not all investors and retirees have benefited from this dividend bonanza. Many, retirees in particular, need to reassess their income generating investments to ensure they are invested in the best possible income generating equites, not just the big four banks and Telstra, Dr Hamson says

“Dividend increases, for example, have been largely concentrated in the resources sector, with traditional income stocks like the big four banks and Telstra either maintaining or cutting dividends.

“A cut in interest rates – while it won’t lead to an increase in dividend income – will also lead to increased investor demand for dividend paying stocks, raising the capital value of some.”

Dr Hamson adds that retirement income offerings tended to be a one size fits all approach. With over five million baby boomers moving into retirement, the need has never been greater for new and innovative retirement income solutions for Australia’s retirees.

“Active dividend income strategies should be a key part of the discussion about retirement income, given that dividend income can be four times that of term deposits.”

Plato is a leader in retirement income generation and highlights how active dividend investing can provide a regular income plus capital gain from the underlying share. Its listed investment company (LIC), PL8, is the only LIC to pay regular monthly dividends.

Don Hamson

Dividends across developed markets rose strongly in the first quarter of this calendar year, according to research by Plato Investment Management.

“Global dividends grew 19% to $A510 billion in the first quarter compared to Q1 2018,” said Dr Don Hamson, Managing Director of active income fund manager Plato Investment Management. “This was a slight acceleration on the Q4 growth of 17%.

“The value of dividends paid in Australia rose 37% in the quarter compared to the first quarter of last year.”

Dr Hamson noted that while dividends rose strongly here, growth was even stronger in Germany (+103%) and the Netherlands (+208%) compared to the previous corresponding quarter.

In contrast, dividends fell in Denmark (-3%), Finland (-4%) and Israel (-46%).

Dr Hamson said: “Here in Australia, several companies increased dividends to beat potential tax changes to franking credit refunds, although most of the big dividend gains came from resources stocks which are benefiting from higher commodity prices.

“This included rises in dividends paid by the likes of Alumina (+165%), BHP (paid an ordinary and a special), RIO (+158%) and Fortescue (+172%).”

He said it was not just Australian miners that are doing well, Labrador Iron Ore, a Canadian iron ore miner increased dividends by 200% in Q1.

Plato’s research noted dividend growth was consistently broad around the world with 56% of dividend paying companies increasing or initiating dividends compared to the same time last year.

Interestingly, it also identified that the percentage of companies completely cutting dividends increased sharply on Q4’s low 1.8% number, with 6% of companies omitting dividends in Q1 2019.  The number of companies initiating dividends also dipped slightly from 8% in Q4 2018 to 7% in Q1 2019.

Dr Hamson added the Australian equity market had been a good long-term investment, out-performing all other developed markets over the past 119 years (1900-2018)[1].

Australia beat the US equity market to take the top spot with a 6.5% return a year, in terms of real returns (returns in excess of inflation) in US Dollars over that period.

In local currency (Australian dollar) terms, the Australian market rose slightly more at around 6.7% a year over the same period.

While past performance is not a reliable indicator of future performance, if that 6.7% pa real inflation were to continue, this would imply total nominal returns of around 8.5% pa at current levels of inflation of 1.8% a year, he said.  The numbers exclude franking tax credits.

Dividend Methodology

Each quarter Plato Investment Management analyses the net dividend income paid by global companies to highlight trends for yield investor clients.  The universe used is the MSCI World IMI, which covers the developed global markets.  The underlying data is provided by Factset.  Dividend paid (US$) for each stock in each calendar quarter is calculated as the shares outstanding as of quarter end multiplied by the total DPS paid out in the calendar quarter. The DPS paid excludes spin offs but includes capital returns and special dividends. Conversion to AUD is done using the prevailing WM/Reuters London exchange rates at the time of dividend payment. Full year dividend paid (US$) is the summation of dividend paid (US$) from Q1 to Q4 using the methodology (1).  DPS movement is based on total DPS paid out (in LC) over each calendar quarter. DPS movement from quarter to quarter is then categorised as initiating, increasing, unchanged, decreasing and cut to zero.

Scholarship winner Anita Ren.

Aspiring women in finance are set to benefit from a partnership between a leading income fund manager and The University of Technology Sydney (UTS).

Plato Investment Management believes change is needed to address the under-representation of women in the sector.

“Investment management is a global industry, and the diversity of our people, ideas and experiences is just as important for success as the diversity of our funds,” Plato Managing Director Dr Don Hamson said yesterday. “There are nowhere near as many women in finance as there ought to be, which means we need to do more – and quickly.”

He said: “We see our partnership with UTS as an important step towards empowering talented students to join the profession and creating a more sustainable and equitable future for our industry.

“This starts with building the pipeline at the university level and doing what we can to improve the number of women applying for jobs and holding leadership positions.”

Plato Investment Management will provide a $5000 scholarship and potential internship to support an exceptional undergraduate student in 2019.

That first recipient is Ms Anita Ren from UTS, who was awarded the inaugural Plato Investment Management Women in Finance Scholarship.

Dr Hamson added: “We hope our scholarships will encourage young women to consider investment management as a career path, and our internships will help them get a foot in the door and gain the experience and connections they need to get started.

“Investment management is a global industry, and the diversity of our people, ideas and experiences is just as important for success as the diversity of our funds.