Plato LIC targets SMSFs
Plato Investment Management has launched its first listed investment company (LIC), Plato Income Maximiser Limited (PL8), which has been designed specifically for self-managed super funds (SMSFs) and pension-phase investors.
It would also target investors who required a “dependable income stream” and aimed to pay monthly, fully-franked dividends.
Plato’s chief investment officer, Don Hamson, stressed retirees were one of the ‘most forgotten’ investor categories with the majority of the industry focusing on big accumulation money.
PL8 would be modelled on the same investment strategy as the one adopted by its Australian Shares Income Fund.
The company also said that the LIC was set up in a response to investor demand for an ASX-product that would target high income paid monthly.
“Income generation is the biggest issue for the retiree clients,” Hamson, said.
Plato decided to list its strategy as an investment company in an attempt to attract SMSFs as “it is easier for those investors to invest on the exchange rather than via managed funds”.
The initial public offering (IPO), which is expected to raise up to $220 million with an ability to accept an additional $110 million in over subscriptions, would offer investors in Australia a diversified portfolio of Australian shares with an income focus.
“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,” Hamson said.
AUTHOR
Oksana Patron
Recommended for you
Having launched its first active ETF for Australian investors earlier this year, iShares says this has helped the firm reach $50 billion in assets under management in Australia.
Recommending Platinum shareholders to enact the merger with L1 Capital, Morningstar has said it expects the combined firm will be able to moderate outflows and facilitate diversity in product range.
Elanor Commercial Property Fund has appealed to the Takeovers Panel regarding the takeover offer by family office Lederer Group, describing “disclosure deficiencies” in last month’s bidders statement.
Wholesale distribution is experiencing the most active hiring efforts as the decline in financial advisers means fund managers are focusing on high-net-worth investors and wealth managers instead.
