Emmanuel Calligeris, Head of Portfolio Solutions Group ING Investment Management, said the long-short strategy focus of Plato would provide excellent diversification benefits to the Australian Equities portfolio during this volatile market period.

“Plato has an experienced team that is committed to rigorous research and innovation in its quantitative methodologies.

“Their addition to the OptiMix Wholesale Australian shares portfolio will improve the alpha potential and the use of short positions in the portfolio will act as a hedge against falling stock prices.”

Plato Investment Management Limited is a quantitative boutique Australian equity fund that was established in 2006. Plato uses an active management approach with a 130/30 long/short strategy. The stock selection techniques used by Plato diversify away from individual stock risk and maximise exposure to bottom up stock selection factors.

“Our analysis of Plato’s investment process has identified the manager as highly skilled in being able to control risk in its short positions. Meanwhile, factor and sector exposures are kept in close line with the index. These considerations are important in our view as they ensure that the majority of the portfolio’s risk originates from the security selection effort,” said Mr Calligeris.

Plato joins Ausbil Dexia Ltd, Barclays Global Investors, ING Investment Management, Orion Asset Management, and Tyndall on the OptiMix Australian shares portfolio, while 452 Capital has been removed.

The Portfolio Solutions Group of INGIM has made these changes in order to continue its first quartile peer relative performance (ChantWest Survey) and outperformance of the S&P / ASX 300 Accumulation Index.

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