Plato Global Alpha Fund

Investment objective

The Plato Global Fund aims to outperform the MSCI World Net Returns Unhedged in AUD benchmark over a rolling 5-year basis

Investment strategy

Plato’s philosophy is that high-quality companies, selling at a discount to intrinsic value with a catalyst and positive sentiment, tend to outperform the market. In contrast, low quality companies, selling at a premium to intrinsic value with a negative catalyst/sentiment, tend to underperform the market.

To further help identify potential underperformers and short opportunities, Plato employs a proprietary “Red Flags” system. These span corporate governance, remuneration, forensic accounting, financial distress, and social and environmental impacts (see below under heading ‘Labour Standards, Environmental, Social or Ethical Considerations’).

Plato recognises its duty to behave responsibly in its business activities and towards those whom its actions affect. As an investment manager, Plato believes that a high standard of business conduct, as well as a responsible approach to ESG issues makes good business sense and enhances shareholder value.

The Fund’s typical net market exposure (long minus short positions) is between 90% and 100% of NAV of the Class.

The Fund’s typical long exposure to equities is between 140% and 150% of NAV of the Class.

The Fund’s typical short exposure to equities is between 40% and 50% of NAV of the Class. The maximum long equity exposure to equities is 180% and short equity exposure is 80% of NAV of the Class.

The Fund’s maximum gross exposure to equities (sum of long and short positions) is 260% of NAV of the Class. The Fund is permitted to invest in OTC derivatives up to 5% of NAV, which excludes OTC derivatives used to manage currency risk. Plato limits the size of individual short positions to less than 2% of the NAV of the Fund.

Investment manager

Plato Investment Management (‘Plato’) is an investment management firm specialising in objective-based global and Australian equity investment solutions for wholesale and retail investors.

Plato was founded in Sydney, Australia, in 2006 and is majority owned and operated by its investment staff. Plato is supported by its minority equity partner, Pinnacle Investment Management Limited (‘Pinnacle’), a leading multi-affiliate investment management firm.

Plato is a stable, research led organisation focused on and aligned to client outcomes. The firm’s strategies today encompass global and Australian equities that are tailored to specific investor objectives of wealth accumulation, income generation and downside protection.