September, 2023
For the month ended 30 September 2023, the Plato Global Shares Income Fund (Class A) (‘Fund’) returned -3.3% (after fees), strongly outperforming a weak benchmark, which fell -4%. The Fund distributed 0.4% of income. Since inception, the Fund has delivered +6.0% p.a. net yield from global equities, exceeding the investment objective to deliver +4% more income than the benchmark, which has only yielded 1.7% p.a.
Global markets were again challenged, but without the benefit to local investors of a significantly weakened Aussie dollar. The AUD (AUDUSD -0.8%) did fall moderately, given the backdrop of USD strength and weak Chinese data. The main driver of weak markets was the rise in global bond yields and stubborn inflation expectations in the US. US markets showed broad weakness (S&P 500 -4.9%, Nasdaq -5.8%) the growth-oriented Nasdaq impacted the most by high rates. Within the headline US index, Energy was the only sector that ended the month in positive territory, a result of the rise in crude oil prices. This price rise, along with weak economic data in Germany and a 25bp rise from the ECB, weighed on European markets (Germany -3.5%, France -2.5%). The UK (+2.3%) did offer some respite
This picture was echoed in Asia (Japan -2.3%), with additional pressure from continued concerns around Chinese growth. Such market moves impacted Gold (-4.7%), whilst oil (WTI US $$/bbl +8.6%) rallied significantly on supply side news from Russia and Saudi Arabia extending their cuts.=
The Fund continued to generate strong excess income. From a country perspective the drivers were in Asia, with strong dividends from Japan and Hong Kong. At the sector level substantial income came from Financials, followed by Real Estate companies. Stock examples of these exposures include Hong Kong Real Estate company, Swire Pacific Ltd, and Japanese financial, Japan Post Holdings Co Ltd. The Plato model invests in such companies to benefit from substantial regular and special dividends.
The relative underperformance of growth created a tailwind for the strategy (MSCI World Growth -5.7%, MSCI World Value -3% in USD). The Fund also benefitted from strong stock selection in Israel and Japan, overcoming a small detraction from Switzerland. From a sector perspective, the main outperformance came from Health Care and Financials. Positive stock selection in the Health Care sector was driven by UnitedHealth Group Inc.
The Fund remains actively positioned to seek superior income for low tax investors, whilst maintaining full equity capital exposure and diversification to both global developed countries and sectors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/Plato-Global-Shares-Income-Fund-Monthly-Report.pdfAugust, 2023
For the month ended 31 August 2023, the Plato Global Shares Income Fund (Class A) (‘Fund’) generated a positive total return of +2.4% (after fees), strongly outperforming the benchmark. The Fund distributed 0.5% of income. Since inception, the Fund has delivered +6.0% p.a. net yield from global equities, exceeding the investment objective to deliver +4% more income than the benchmark, which only yielded 1.7% p.a.
When viewed in local currency terms, global markets were challenged throughout August. Weak US markets (Nasdaq -2.2%, SP500 -2.4%), were driven by concerns over the Chinese economy, especially around real estate, elevated yields, and a Fitch downgrade. Energy was the only sector in the S&P 500 that recorded a positive month. European and Asian markets followed suit, with similar pressures compounded by a 0.25% hike from the BoE in Europe (UK -3.4%, Germany -3%, Japan -1.7%, Hong Kong -8.5%). Improving sentiment regarding Chinese stimulus and predictions of peaking global interest rates provided a small rally into month end, but it was too little too late. Oil (WTI +2.2%) jumped on the back of output cuts being extended from both Saudi Arabia and Russia. The Aussie dollar fell, driven by a strong US dollar and weakening Chinese economy. The index was down -2.3% in USD terms, however a weak Aussie dollar (-3.5% v USD) converted a negative return to a positive return (+1.6%) when based in AUD.
The Fund continued to generate strong excess income. From a country perspective the drivers were the USA and the UK. At the sector level substantial income came from Financials, followed by Industrials. Stock examples of these exposures include Singaporean industrial, Singapore Airlines, and UK financial, HSBC Holdings Plc. The Plato model invests in such companies to benefit from substantial regular and special dividends.
File:May, 2023
For the month ended 31 May 2023, the Plato Global Shares Income Fund (Class A) (‘Fund’) delivered a net yield of +1.5% and a positive total return of +1.6% (after fees), outperforming a positive benchmark. Since inception, the Fund has delivered +6.1% p.a. net yield from global equities, exceeding the investment objective to deliver +4% more income than the benchmark.
In USD terms global markets were weak, although a falling Aussie dollar boosted returns for Australian investors when converted to base currency. Risk off sentiment, weak domestic jobs and Chinese data put pressure on the local dollar (AUDUSD -1.7%). In the US optimism on the debt ceiling deal and strength in the tech sector, driven by demand for AI processing products, offset the weakness in energy stocks (S&P 500 +0.3%, Nasdaq +5.8%). In Europe commodity weakness and a pullback in luxury discretionary products was too much for any tech strength and led to a strong market decline (France -5.2%, UK -5.4%). Asia was further impacted by weaker than expected Chinese PMI data, although Japan rallied on strong domestic results and a weaker Yen (Hong Kong -8.4%, Japan +7%). Global growth concerns, and weaker Chinese data, saw a fall in demand for oil and hence negative price action (WTI -11.3%).
The Fund continued to generate strong excess income, helped by the fact that European companies pay substantial dividends at this time of year. From a country perspective the drivers were Germany and Norway. At the sector level substantial income came from Materials and Financials. Stock examples of these exposures include French Financial, A2A Spa, and German materials business, Heidelbergcement. The Plato model rotates into such companies to benefit from substantial regular and special dividends.
The Fund outperformed, despite headwinds due to the relative outperformance of large cap (MSCI World Small Cap -3%, MSCI World Large Cap -0.8% in USD), growth companies (MSCI World Growth +2.4%, MSCI World Value -4.9% in USD). The Fund benefitted from strong stock selection in the US and UK. This is one of the strategy benefits, allowing income to be generated from European holdings and excess return being found elsewhere in the portfolio. From a sector perspective, the main outperformance was in IT, in contrast to the previous month. Positive stock selection came from positions in Broadcom and NVIDIA, held for strong expected returns, which benefitted from the run in AI exposed stocks.
The Fund remains actively positioned to seek superior income for low tax investors, whilst maintaining full equity capital exposure and diversification to both global developed countries and sectors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/201754189.pdfOctober, 2022
For the month ended 31 October 2022. the Plato Global Shares Income Fund (Class Al ('Fund') delivered o net yield of 0.3% after fees and a total return of -8.2% after fees. outperforming a strong index (+7.8%). Over the last 12 months the fund has outperformed the index by +1.9%. after fees. Since inception. the Fund continues to deliver 6% p.o. net yield from global equities after fees, which is 4.2% p.o. more than the Benchmark.
In October. Global equity markets reversed recent losses, posting a strong month. The main driver was the surging Energy sector. supported by o strong oil price (WTI +8.9%). Although still positive, the US tech sector pored bock of the end of the month, os markets positioned for the anticipated Fed rote increase (S&P 500 .8%. Nosdaq +3.9%). European markets followed suit. despite recessionary concerns and politico) turmoil in the UK (UK .2.9%. Germany .9.4%). Asian markets were mote mixed. Hong Kong experiencing contagion from Chino, where policy was not supportive for the struggling retail sector and the leading party underlined their commitment to Zero Covid (Nikkei +6.4%. Hong Kong -14.7%). Gold 1-1.6%) continued a downward slide, driven by increasing US rates and consequently rising treasury yields. The local currency remained relatively flat. with rate increases offset by Greenback strength.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/192770688.pdfSeptember, 2022
For the month ended 30 September 2022. the Plato Global Shores Income Fund (Class AI ('Fund') delivered a net yield of 0.4% and total return of -3.7% after fees, underperforming a weak index (-3.2%). Since inception, the Fund continues to deliver 6% p.a. net yield from global equities. which is 4.3% p.a. more than the Benchmark. This is despite the fall in market yields over recent years.
In September. Global equity markets furthered the losses felt during the previous month. Despite positive payroll data, US markets posted severe falls, driven by high inflation. the subsequent requirement for the Fed to raise interest rates and the potential for that to result in o recession (S&P500 -9.3%, Nasdaq -10.5%). The rote sensitive real estate sector was the worst performer (S&P 500 Real Estate -13.6%). These themes impacted all regions globally. Sentiment in European markets was also impacted by the annexation of regions in Ukraine and both bond and currency issues in the UK. driven by the new governments mini budget (UK -5.4%. France -5.9%). Asian markets further reflected Chinese lockdowns in the region. (Hong Kong -13.7%). Despite its safe haven status. Gold was pushed lower by rising US yields and a stronger US dollar (Gold -3%). The stronger US dollar also drove oil and the Aussie dollar lower (WTI -11.2%. AUDUSD •6.5%).
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/192061572.pdfAugust, 2022
For the month ended 31 August 2022, the Plato Global Shares Income Fund (Class A) ('Fund') delivered a net yield of 0.3% and a total return of -1.8%. outperforming a weak index (-2.5%). Since inception, the Fund continues to deliver 6% p.a. net yield from global equities, which is 4.3% p.a. more than the Benchmark. This is despite the fall in market yields over recent years.
After the bounce in July, global equity markets resumed the previous downward trend. Despite initial strength, US markets (S&P500 -4.2%. Nasdaq -4.6%) posted a negative month driven by the Feds hawkish stance at Jackson hole and consequent tightening policy. US 10-year bond yields rose as the Fed said they were willing to cause "some pain" to tame inflation and that they were unlikely to reduce rates in 2023. Energy was the strongest sector, conversely the rate sensitive Real Estate sector fell over -4%. The story in Europe was similar, compounded by soaring inflation, a hawkish ECB, and the seeds of an energy crisis (Germany -4.8%, France -5%). There were some bright spots in Asian markets (Singapore +0.3%, Japan +1%). Gold (-3.1%), Crude oil (-9.2%) and the Aussie dollar (AUDUSD -2.1%) all posted a weak month. This was driven by Fed policy, recessionary fears, and a strong greenback comparatively.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/190874237.pdfJuly, 2022
For the month ended 31 July 2022. the Plato Global Shares Income Fund (Class A) l•Funcrl delivered a net yield of D7% and a total return of .4.8%. trailing a strong growth driven index (+6.4%). As per regulation the income that had gone ex dividend. but not been received, in the financial year ending June 2022 has been included in this distribution. Since inception, the Fund has delivered 6% p.o. net yield from global equities. which is 4.3% p.o. more than the Benchmark.
After a significant drowdown in June. global equity markets bounced back. Lower bond yields buoyed longer duration growth sectors. for example IT. which rallied hard into month end. The US S&P 500 (+9.1%) index posted its best month since 2020. with all sectors ending the month positive. After a soft start from the banks, earnings season picked up. consolidated by a strong retail sales print. The ECB delivered its first rate increase in o decode. at the some time that o better than expected reporting season boosted European markets (Germany .5.5%. France .8.9%). A slow down in Chinas growth rate. and concerns over the property sector, resulted in mixed numbers from Asian markets (Hong Kong -7.8%. Japan -5.3%). A strong US dollar hurt gold (-4%) and provided a headwind to the Aussie dollar. Despite this the AUD posted o positive return (+1.2%). assisted in port by strong local employment data. Crude oil (WTI -6.8%) had a volatile month. falling on demand concerns and the weak global growth outlook.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/190038471.pdfJune, 2022
For the month ended 30 June 2022. the Plato Global Shares Income Fund (Class A) ('Fund') delivered a net yield of 0.1% and a total return of —5.5%. trailing a weak index by -0.8%. As normal. a portion of the income is not received until after financial year end. As a result, it will be distributed in July. Since inception. the Fund has delivered 6.0% p.a. net yield from global equities. which is 4.2% p.a. more than the Benchmark.
Global equity markets posted a significant drowdown in the month of June. US equities led the fall. returning the weakest first half of a year since 1970. The clear driver was the energy (-17%) and materials (-14.1%) sectors. Higher than expected inflation data heightened market expectations for future rate increases. Investors became more concerned about the risk of recession. providing a headwind to markets (Nasdaq -8.7%. S&P 500 -8.4%). European markets took a lead from the US. reflecting similar concerns and with resources falling heavily (UK -5.8%. France -8.4%). Asian markets. although down. held up slightly better (Nikkei -3.3%. Singapore -4%). The major Hong Kong index (+2.1%1 even positive, driven by better than expected Chinese data and the easing of their COVID restrictions. Oil was volatile in June. falling due to the same global recession concerns and associated reduction in demand (WTI -7.8%). Gold (-1.6%) held up relatively well as a hedge against inflation. The Aussie dollar was supported by a 0.5% rate rise. but fed hikes provided even more strength to the USD (AUDUSD -3.8%) This reduced the broad market falls. when converting for domestic investors.
The Fund continued to generate strong excess income, driven at the sector level by Financials and Utilities. From a country perspective the driver was the United States. United Kingdom. and Italy. Stock examples of these exposures include US health business. Merck & Co. and Italian financial. Postle Italiane SPA. The Plato model rotates into such companies to benefit from substantial regular and special dividends.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/189001571.pdfMay, 2022
For the month ended 31 May 2022, the Plato Global Shares Income Fund (Class A) ('Fund') delivered a net yield of 0.9% and a total return of —0.3%, again outperforming a weak index by +0.5%. Since inception, the Fund has delivered 6.1% p.a. net yield from global equities, which is 4.3% p.a. more than the Benchmark. Global equity markets were mixed for the month of May. Drivers of markets in April, rising inflation and central bank tightening, continued to fuel negative investor sentiment. Broad US markets were flat, but these themes continued to challenge tech stocks in the Nasdaq, which are priced for future growth (Dow +0.04%, S&P500 +0.01%, Nasdaq -2.1%). Persistent cost pressures, supply chain issues and a rapid reduction in consumer spending on goods were highlighted in the weak results, and subsequent drawdown, of retailers Walmart and Target. However, the energy sector supported markets, surging on the back of strong oil and gas prices. Europe held up, despite pressure from expected rate rises and the risk to growth from the war in Ukraine (Germany +2.1%, France -1%). The rolling back of restrictions in China, and subsequent reopening, bolstered Asian markets (Hong Kong +1.5%, Nikkei +1.6%). Crude gained strongly as the EU put a partial ban on Russian oil (WTI +9.5%). The Aussie dollar rose with the RBA's 25bp rate hike, although USD strength provided a cap (AUDUSD +1.6%).
The Fund continued to generate strong excess income, driven at the sector level by Financials and Consumer Durables. From a country perspective the driver was Europe, led by France and Germany. Stock examples of these exposures include US financial, American Financial Group, and Germany auto business. BMW AG. The Plato model rotates into such companies to benefit from substantial regular and special dividends. The fund outperformed the index, helped by its relative value exposure. As markets retreated, Value stocks again held up better than their growth counterparts (MSCI World Value +2.1% v MSCI World Growth -2.8% in USD). Small cap companies underperformed their large cap counterparts, creating a small headwind for the strategy (MSCI World Small Cap +0.3% v MSCI World Large Cap +1% in USD). The Fund demonstrated positive stock selection in the US, Germany, and Hong Kong. This more than made up for weakness in Sweden and Japan. From a sector perspective relative performance continued to be strong in Healthcare and IT, offsetting weakness in Financials. Plato's proprietary approach seeks to identify stocks that perform strongly in the period prior to their ex-dividend date. Examples include US healthcare companies, Pfizer and Johnson & Johnson. The Fund remains actively positioned to seek superior income for low tax investors, whilst maintaining full equity capital exposure and diversification to both global developed countries and sectors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/188012184.pdfApril, 2022
For the month ended 30 April 2022, the Plato Global Shares Income Fund (Class A) ('Fund') delivered a net yield of 0.6% and a total return of -1.1%, outperforming a weak index by +2.1%. Since inception, the Fund has delivered 6% p.a. net yield from global equities, which is 4.2% p.a. more than the Benchmark.
Global equity markets reversed a strong March, posting broadly negative numbers for April. Headline themes of rising inflation and central bank tightening fuelled negative investor sentiment. Volatility rose significantly throughout April, the VIX risk index finishing the month over 60% higher. Against this backdrop, US stocks with weak earnings numbers, for example Netflix, were punished (S&P500 -8.8%). The rising rate environment created particularly intense problems for tech valuations, which are priced for future growth (Nasdaq -13.3%). Alongside hawkish central banks, developments in Ukraine continued to create pressure in Europe (France -1.9%, Germany -2.2%). This was further exacerbated in Asia by rising covid cases and weak economic data out of China (Nikkei -3.5%, Hong Kong -4.1%). After recent strength, gold fell (-2.1%), driven by weak sentiment and the impact of higher rates on non-interest bearing assets. Oil continued to rise (WTI +4.4%) on the back of reduced global supply and the potential EU ban on Russian oil. A strong USD and risk off sentiment resulted in a weak domestic dollar (AUDUSD -5.6%).
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/187078671.pdfMarch, 2022
For the month ended 31 March, 2022, the Plato Global shares income Fund ( Class A ) (Fund) delivered a net yield of +0.7% and a total return of - 0.7% outperforming the index by + 0.2%. Since Inception, the Fund has delivered +6% pa.a net yield from global equities which is +4.2% p.a more than Benchmark.
Despite heightened volatility, driven by the Ukraine crisis, inflation, and rising rates, global equity markets posted a strong month. However, when converted for Australian investors, positive local market returns were offset by the continued strength of the Australian dollar (AUDSUD + 3%).
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/186224522.pdfFebruary, 2022
For the month ended 28 February 2022, the Plato Global Shares Income Fund (Class A) ('Fund') delivered a net yield of +0.2% and a total return of -5.1%, outperforming the index by 0.4%. Since inception, the Fund has delivered +6% p.a. net yield from global equities, which is +4.2% p.a. more than the Benchmark.
The Fund continued to generate strong excess income, driven at the sector level by Financials and Transportation. From a country perspective the drivers were the US and France. Stock examples of these exposures include Italian financial Banca Generali and US technology business, IBM Corp. The Plato model rotates into such companies to benefit from substantial regular and special dividends.
The fund outperformed a weak benchmark, supported by the outperformance of value in January (MSCI World Value -1.8% v MSCI World Growth -3.6% in USD). Despite a small pull back for growth in the last few days of February, investor concern continued to increase regarding the impact of rate changes for growth names. The Fund demonstrated positive stock selection in Germany and Japan. From a sector perspective relative performance was strong in Materials and Industrials, offsetting weakness in Financials. Plato's proprietary approach seeks to identify stocks that perform strongly in the period prior to their ex-dividend date. Examples include US financial company, Wells Fargo & Co, and technology business IBM Corp.
The Fund remains actively positioned to seek superior income for low tax investors, whilst maintaining full equity capital exposure and diversification to both global developed countries and sectors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/184843409.pdfJanuary, 2022
For the month ended 31 January 2022, the Plato Global Shares Income Fund (Class A) ('Fund') delivered a net yield of +0.1% and a total return of -1.9%, outperforming the index by 0.3%. Since inception, the Fund has delivered +6% p.a. net yield from global equities, which is +4.3% p.a. more than the Benchmark.
Global markets were generally negative in January, giving back gains from the previous month. This loss was lessened by a weak Aussie dollar (AUDUSD -2.7%) when returns are converted for local investors. The US hit an all time high as markets opened for January. The pervasive theme throughout the month was potential rate hikes and the consequent sell off in frothier sections of the market, primarily tech names. The Feds potential March hike increased investor concerns, which were exacerbated by the increasing geopolitical tensions with Russia (S&P 500 -5.3%, Nasdaq -9%). Europe also started strongly, driven by reduced concern over Omicron. However, the threat to rate sensitive sectors from tightening monetary policy pushed markets lower (Germany -2.6%, France -2.2%). Asia was impacted by real estate issues and the broad slowdown in China. There were bright spots (Hong Kong +1.7%). Gold (-1.8%), a hedge for inflation, pulled back due to the Fed's increasingly aggressive approach to rein in inflation. Crude oil had a stellar month (+17.2%) due to strong consumption, the tensions in Ukraine and a tight supply picture.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/183915403.pdfDecember, 2021
For the month ended 31 December 2021, the Plato Global Shares Income Fund (Class A) ('Fund') delivered a net yield of +0.5% and a total return of +2.2%. Since inception, the Fund has delivered +6.1% p.a. net yield from global equities, which is +4.3% p.a. more than the Benchmark. Global markets rebounded strongly in December, after a weak preceding month. Although still positive, this return was reduced by a strong Aussie dollar when converted for local investors. Strong markets reflected reduced investor concern around the increase in Omicron cases, given the reduced severity when compared to previous variants.
Markets were volatile. The US rallied on broad economic optimism, but this was punctuated by a mid-month retracement due to the expectation of central bank policy tightening (SP500 +4.4%, Dow +5.4%). The growth-heavy Nasdaq (+0.7%) trailed due to the implication rate rises have for growth names. Europe was similarly strong (Germany +5.2%, UK +4.6%), with more uncertainty in Asia due to ongoing property concerns and inflation worries (Nikkei +3.5%, Hong Kong -0.3%). In calendar 2021 Asia (Nikkei +4.9%, Hong Kong -14.1%) reflected local issues, whilst the US (SP500 +26.9) and Europe (France +28.9%, Germany +15.8%) posted a very strong year.
The Fund continued to generate strong excess income, driven at the sector level by Financials. From a country perspective the drivers were the US, Japan, and Canada. Stock examples of these exposures include portfolio holdings in British Financial, Investec Plc and Japanese Real Estate business, Nippon REIT Investment Corp. The Plato model rotates into such companies to benefit from substantial regular and special dividends.
The fund outperformed a positive benchmark, supported by the outperformance of value in December (MSCI World Value +6.4% v MSCI World Growth +2.1% in USD). Investor concern is increasing regarding the impact of policy changes for growth names. The fund benefited from underweight positions in companies, including Amazon and Tesla. This trend helped overcome the underperformance of smaller companies when compared to their larger counterparts (MSCI World Small Cap +3.6% v MSCI World Large Cap +4.2% in USD). The Fund demonstrated positive stock selection in the US and UK. From a sector perspective relative performance was strong in Health Care and IT, offsetting weakness in Consumer Staples and Real Estate. Plato's proprietary approach seeks to identify stocks that perform strongly in the period prior to their ex-dividend date. Examples include US retailer, Macy's Inc, and technology business Xerox holdings Corp.
The Fund remains actively positioned to seek superior income for low tax investors, whilst maintaining full equity capital exposure and diversification to both global developed countries and sectors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/182652097.pdfNovember, 2021
For the month ended 30 November 2021, the Plato Global Shares Income Fund (Class A) (`Fund') delivered a net yield of +0.6% and a total return of +3.6%. Since inception, the Fund has delivered +6.1% p.a. net yield from global equities. which is +4.3% p.a. more than the Benchmark.
Global markets were broadly negative in November, although helped significantly by a weak Aussie dollar when converted for local investors. Early gains in the S&P 500 were erased late in the month by an escalation of concerns around the emerging Omicron virus and the Fed's view that inflation is becoming more persistent. Europe and Asia followed suit, posting negative returns for the month. (UK -2.5%, Germany -3.8%, Japan -3.7%). Weakness in these markets reflected similar trends to those in the US, including increased concerns surrounding the virus and surging cases in Europe. In addition, this also impacted oil markets, compounded by the release of supply from the US strategic petroleum reserve. Oil posted its largest loss since early 2020, driven by one of the largest ever one day falls of-11%. (WTI -20.8%). Several market trends put pressure on the Aussie dollar, including a flight to safety move towards the US dollar after the Omicron variant emerged, a Chinese slowdown, falling commodity prices and speculation that increasing US inflation will cause rate rises. This significantly increased AUD based returns for domestic investors in what was a weak month for global equities.
The Fund continued to generate strong excess income, driven at the sector level by Financials. From a country perspective the drivers were the US, Hong Kong, and the UK. Stock examples of these exposures include portfolio holdings in Italian financial. Mediobanca Spa and US health technology business, Pfizer Inc. The Plato model rotates into such companies to benefit from substantial regular and special dividends.
The fund held up well, considering growth significantly outperformed value in November. (MSCI World Value -4.5% v MSCI World Growth -1.2% in USD). In addition, smaller companies significantly lagged their larger counterparts. The Fund performed positively in the US, which was offset by weak relative performance in Italy and Japan. Relative performance was strong in Health Care and IT. Plato's proprietary approach seeks to identify stocks that perform strongly in the period prior to their ex-dividend date. Examples include US financial. Moelis & Co, and US retailer, Target Corp.
The Fund remains actively positioned to seek superior income for low tax investors, whilst maintaining full equity capital exposure and diversification to both global developed countries and sectors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/181286205.pdfJune, 2021
For the month ended 31 May 2021, the Plato Global Shares Income Fund (Class A) ('Fund') delivered a net yield of +0.6% and a total return of +1.2%, consistent with the benchmark. Since inception. the Fund has delivered +6% p.a. net yield from global equities, which is +4.2% p.a. more than the Benchmark.
May was a broadly positive month for developed global markets. However, there were mixed thematics underlying this positive global index return. US equities had a positive month (S&P 500 +0.6%), but the tech heavy Nasdaq fell more than -1.5%. The US corporate numbers were strong and economic data remained supportive. However, the tech sector struggled as investor concerns regarding inflation came to the fore. Europe was stronger across the board (Germany +1.9%. France +2.8%). Despite worries that stimulus in Europe was driving imbalances, expectations that the ECB will continue to stimulate supported markets. Asian markets were more mixed (Singapore -1.7%, Hong Kong +1.5%). Gold (+7.8%) performed very well on the back of a weaker US dollar and increasing inflation concerns. The domestic dollar was relatively flat.
The Fund continued to deliver strong excess income, driven at the sector level by Financial and Consumer Service stocks. From a country perspective the drivers were the US. Italy, and France. Stock examples of these exposures include portfolio holdings in Italian financial, Azimut Holding Spa and US energy company. Exxon Mobil Corp. The Plato model rotates into such companies to benefit from substantial regular and special dividends.
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/174851925.pdfMay, 2021
For the month ended 31 May 2021, the Plato Global Shares Income Fu nd (Class A) (’ Fund’) delivered a net yield of +0.6% and a total return of + 1.2%, consistent with the bench mark. Si nce inception. the Fund has delivered +6% p.a. net yield from globaI equities, which is +4.2% p.a. more than the Benchmark.
May was a broadly positive month for developed plobo I markets. However, there were mixed thematics underlying this positive qlobol index return. US equities had a positive month (S&P 500 +0.6%). but the tech heavy Nasdoq fell more than - 1.5%. The US corporate numbers were strong and econom ie data remained supportive. However, the tech sector strugqled as investor concerns regardinq inflation come to the fore. Europe was stronger across the board (Germany +1.9%, France 2.8%). Despite worries thot stimulus in Europe was driving imbalances, expectations thot the ECB will continue to stimul ate supported markets. Asian markets were more mixed (Singapore - 1.7%, Hong Kong + 1.5%). Gold ( 7.8%) performed very well on the back of a weaker US doll ar and increasing inflation concerns. The domestic dollar was relatively flat
File: https://commentary.quantreports.net/wp-content/uploads/2021/04/173499618-1.pdfFebruary, 2021
For the month ended 28 February 2021, the Plato Global Shares Income Fund (Class A) ('Fund') delivered a net yield of +0.2% and a total return of +1.9%, outperforming the benchmark by 0.3%. Since inception, the Fund has delivered +6% p.a. net yield from global equities, which is +4.2% p.a. more than the Benchmark. February was again a mixed month for global equity markets. After a positive start to the month, gains were pared back in the final weeks. Markets were initially driven by the commitment to low US rates and a well-received pandemic relief package. This stimulus and strong initial earnings beats, in Europe and the US, drove markets higher. Energy stocks fared particularly well this month. The Bank of England forecast strong growth, 5%, for 2021. However, the end of the month was characterised by concern over the breakout in global yields and capitulation of the tech sector, where valuations were stretched.
The US treasury warned rates may indeed be lifted sooner than investors expected. This negative sentiment was consolidated by weaker earnings reports, which than cast doubt over the recovery. Despite this pullback, global markets remained in positive territory for the month of February (S&P 500 +2.6%, Nasdaq +0.9%, UK +1.2%, Hong Kong +2.5%). The Fund continued to deliver strong excess income, driven at the sector level by Financial and Transportation stocks. From a country perspective the drivers were the US, Israel, and Spain. Stock examples of these exposures include portfolio holdings in Israeli auto company, Delek Automotive Systems and US technology business, Intel Corp. The Plato model rotates into such companies to benefit from substantial regular and special dividends. The Fund outperformed in a period with a value tailwind. (MSCI World Value +4.5% v MSCI World Growth +0.3% in USD). This was reflected in the weakness of headline tech names, Apple and Amazon. Relative returns benefitted from the continued rebound in small/mid cap names. The Fund posted relative outperformance in the UK and Spain, offsetting the US. Within sectors, strong outperformance in IT and Materials offset weakness in Financials.
Plato's proprietary approach seeks to identify stocks that perform strongly in the period prior to their ex-dividend date. Examples include US energy company, Exxon Corp and German industrial, Siemens NPV. The Fund remains actively positioned to deliver superior income for low tax investors, whilst maintaining full equity capital exposure and diversification to both global developed countries and sectors.
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ticker: WHT0061AU
release_schedule: Monthly
structure: Managed Fund
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https://plato.com.au/global-strategies/global-shares-income-fund/
fund_features:
Plato Global Shares Income A aims to provide an annual yield that exceeds the yield of the MSCI World ex Australia, Net Returns Unhedged Index after fees. The Fund also aims to outperform the MSCI World ex Australia, Net Returns Unhedged Index. The Fund aims to provide an annual yield that exceeds the yield of the MSCI World ex Australia, Net Returns Unhedged Index after fees. The Fund also aims to outperform the MSCI World ex Australia, Net Returns Unhedged Index.