Australia’s Best Income Share Fund for 2026 Revealed by Money
Synopsis
Plato Investment Management's Australian Shares Income Fund clinches Money Magazine's Best of the Best 2026 award for top Australian shares income fund performance and reliability. For investors looking for reliable income, Plato Investment Management’s…
Plato Investment Management's Australian Shares Income Fund clinches Money Magazine's Best of the Best 2026 award for top Australian shares income fund performance and reliability.
For investors looking for reliable income, Plato Investment Management’s Australian Shares Income Fund has stood out in recent years. In 2026, it was recognised by Money magazine as the leading income-focused share fund in the country. Launched in 2011, the fund targets investors such as SMSFs and retirees who can take advantage of franking credits. Over that period, it has edged past the ASX 200 while delivering a high level of income, with an after-fees yield of 9.4% by the end of 2025. The fund is run using an active approach that concentrates on companies paying dividends. Research houses such as Lonsec and Zenith have responded positively, pointing to the fund’s steady performance and clear focus on income.
Proven Yield and Outperformance Edge
Launched in September 2011, the fund has built its strategy around owning a broad mix of Australian shares that pay franked dividends. The fund usually owns between 50 and 120 shares at any given time, with the manager making changes as market conditions shift. There is no fixed style guiding decisions. Instead, stock picks are based on a mix of fundamentals, pricing, and how the market is behaving. Over time, this approach has delivered a net yield of 9.4%, putting the fund’s income ahead of the wider market.
Fees remain in line with other actively managed income funds, with Morningstar reporting a total cost ratio of 0.9%. Over time, returns have remained steady, averaging just over 8% across three, five, and since-inception periods. The fund is run by a team with decades of combined experience and is supported by Pinnacle Investment Management, with a focus on managing risk while avoiding fixed sector bets.
Franking Credits Maximise Retiree Income
The fund is aimed at investors who do not pay tax and can fully benefit from franking credits. By focusing on companies that pay franked dividends, it distributes income each month and provides a steady source of income.
The strategy is typically suited to a three- to five-year investment timeframe and is commonly used by SMSFs and charitable investors. Rather than locking into fixed sector positions, the manager actively adjusts the portfolio, including trimming exposure to sectors such as energy and mining when market conditions become unsettled.
Research firms covering the fund have pointed to its emphasis on delivering income outcomes that match investor needs, particularly at a time when traditional yield options have been limited by lower interest rates.
Award Validates Strategy Amid Challenges
In its annual review, Money ranked Plato’s fund strongly on measures that look at how much return is generated for the level of risk taken. The fund also scored well for the consistency of its income, setting it apart from many similar products. Looking ahead, expected interest rate cuts in 2026 may provide a more supportive backdrop for share markets.
At the core of Plato’s process is in-house research that flags potential risks and assesses what a business is worth. Those insights are then used to build a diversified portfolio focused on Australia’s many dividend-paying companies, with the aim of delivering steady income over time.
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