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
Clime Investment Management has appointed two to its operations team, focusing on managed funds, as it continues its cost-cutting process.
The global asset manager’s latest ETF has launched in response to rising adviser and investor demand for actively managed fixed income products.
The acquisition of Evidentia Group by GDG shows how valuable the role and personal relationship with a managed account consultant has become to the financial advice industry, says IMAP’s Toby Potter.
January saw $4.6 billion in inflows into ETFs, according to Betashares, with four Australian funds seeing the largest monthly inflows.
