Plato targets retirees with new fund
Retirees should look beyond traditional income sources to support their retirements, according to Plato Investment Management managing director, Dom Hamson.
Launching the Plato Global Shares Income Fund (Managed Risk), Hamson said those who look to cash and property to fund their retirement were missing out on higher returns available from equities.
Hamson said the new fund aimed to emulate the success of the Plato Australian Shares Income Fund (Managed Risk), which has delivered investors a net income of 9.1 per cent per annum — 2.5 per cent above the income benchmark — while stabilising portfolio volatility using the Milliman Managed Risk Strategy.
"While retirees are looking for high and generally stable income, we don't believe this means they need to invest in cash and property and miss out on the capital and diversification benefits of equities — both domestic and global," he said.
"Initial feedback from the market to our Global Share Income Fund has been extremely positive and we are very focused on innovating for retirees, a market that is not always a priority for other funds."
AUTHOR
Nicholas O'Donoghue
Recommended for you
Natixis Investment Managers has hired a distribution director to specifically focus on the firm’s work with research firms and consultants.
The use of total portfolio approaches by asset allocators is putting pressure on fund managers with outperformance being “no longer sufficient” when it comes to fund development.
With evergreen funds being used by financial advisers for their liquidity benefits, Harbourvest is forecasting they are set to grow by around 20 per cent a year to surpass US$1 trillion by 2029.
Total monthly ETF inflows declined by 28 per cent from highs in November with Vanguard’s $21bn Australian Shares ETF faring worst in outflows.
