Plato Global Alpha Fund

The Fund aims to outperform the MSCI World Net Returns Unhedged Index by 4% p.a. (after fees) over the medium-long term. 

The Fund uses an all-weather investment style that seeks to deliver consistent alpha over the cycle.

The Fund aims to provide investors with long and short exposure to an actively managed, diversified portfolio of listed global equities. 

The investment facilitates additional exposure to attractive companies compared to traditional long-only investments while  also allowing the investment manager to generate returns through shorting unattractive companies. The Fund utilises leverage by using the cash generated from shorting to gain additional long exposure.

The investment approach is highly sophisticated with access to over 850 data sets and processing more than 5 million data points per day.

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 Investment Manager employs a bottom-up, fundamental investment strategy focusing on four pillars:

1. Intrinsic Value – discount to fair value;
2. Holistic Quality – sustainable earnings and growing organic cash flow;
3. Sentiment – strong management, analyst and investor sentiment; and
4. Red Flags – robust governance, conservative accounting and financial stability.

The Investment Manager looks to deliver consistent alpha over the cycle by investing in the best opportunities in each, sector, country, and style. The Fund will take short positions in companies that are unattractive on the four pillars. The Investment Manager limits various sources of risk so that no one risk is overly present in the portfolio. Specifically, the Investment Manager monitors and constrains the country, industry, size, market (beta), liquidity and stock specific risks of the portfolio on a daily basis using third-party and proprietary systems.

The Investment Manager will invest the cash generated by short positions into long positions that the manager anticipates will outperform. This will typically result in an additional 50% of long exposure funded from equivalent short exposure i.e., 150% long and 50% short.

The Funds typical and maximum exposures are set out below. Net exposure is calculated by subtracting short exposure from long exposure. Gross exposure is calculated by adding long and short exposure together.

Click here to view our latest Performance Details.

This communication is prepared by Plato Investment Management Limited (‘Plato’) (ABN 77 120 730 136, AFSL 504616) as the investment manager of the Plato Global Alpha Fund (ARSN 654 914 048) (‘the Fund’). Pinnacle Fund Services Limited (‘PFSL’) (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

Link to the Product Disclosure Statement

Link to the Target Market Determination

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email service@pinnacleinvestment.com

This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance.

Whilst Plato, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Plato, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.

Any opinions and forecasts reflect the judgment and assumptions of Plato and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future.

Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Plato. Pinnacle and its associates may have interests in financial products and may receive fees from companies referred to during this communication.

Ratings Disclaimer

¹The Foresight Analytics & Ratings logo is used for information purposes only and does not constitute a recommendation or an offer or solicitation to purchase any fund or company securities offered by Plato Investment Management Limited. Investors should refer to the full disclaimer on the rated funds that can be found at this link.

²The Lonsec Ratings (assigned as follows: Plato Global Alpha Fund – April 2023) presented in this document are published by Lonsec Research presented in this document are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Ratings are limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial products. Past performance information is for illustrative purposes only and is not indicative of future performance. They are not a recommendation to purchase, sell or hold Plato products, and you should seek independent financial advice before investing in these products. The Ratings are subject to change without notice and Lonsec assumes no obligation to update the relevant documents following publication. Lonsec receives a fee from the Fund Manager for researching the products using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at:

https://www.beyond.lonsec.com.au/intelligence/lonsec-ratings.