Listed investment company (LIC) QV Equities Ltd (ASX: QVE) recently provided shareholders with an investor update.
QV Equities is a $200 million portfolio managed by the highly regarded funds management group Investors Mutual.
Amongst the appealing attributes of QV Equities is not just the long-term track record of its manager (which has a total of over $5 billion in funds under management) but also the scaled fee structure which includes no performance fee, the portfolio's focus on stocks outside of the largest 20 ASX-listed companies and the current 21% cash holding.
Here are three stocks which Investors Mutual singled out as portfolio holdings which it believes can "self" generate earnings growth:
- Amaysim Australia Ltd (ASX: AYS) is a branded reseller of mobile network SIM cards. The company offers customers appealing deals such as no lock-in contracts which in turn have led to industry-leading customer satisfaction levels. Amaysim has been growing its market share and is currently trading on a price-to-earnings (PE) ratio of around 17.7x and with a yield of 4.5% (according to the QV Equities presentation).
- Pact Group Holdings Ltd (ASX: PGH) is the largest manufacturer of rigid plastic containers in Australasia. The company can boast of a 50% market share with 62 manufacturing sites and long-term blue chip customers. The stock is currently priced on a PE of around 13x and with a yield of 5%, partly franked.
- Spark Infrastructure Group (ASX: SKI) operates electricity distribution assets in South Australia and Victoria and electricity transmission assets in New South Wales. These infrastructure assets are regulated and as such they provide a reliable dividend. The yield on the stock is currently around 6.6% (unfranked)