I believe that self-managed super fund investors are likely to have two main goals when it comes to investing. One is to create a source of income in retirement and the other is to avoid capital losses.
Whilst this is easier said than done, investors will give themselves the best possible chance of realising these goals if they invest wisely. Investing in high quality companies which are leaders in their fields, have a history of generating wealth for their shareholders, and possess strong balance sheets is a good starting point.
Here are three shares which I feel would make good additions to a self-managed super fund:
Flight Centre Travel Group Ltd (ASX: FLT)
I think Flight Centre would be a great self-managed super fund addition for both growth and income. Following an 11% drop in its share price this year its shares are now expected to provide a fully franked 4.4% dividend in FY 2017 according to CommSec. Although many investors are concerned about the rise of online travel agencies such as Webjet Limited (ASX: WEB), I believe Flight Centre is in a strong position to compete thanks to the acquisitions of BYOjet and StudentUniverse. At just 13x full year earnings its shares look great value to me.
Mayne Pharma Group Ltd (ASX: MYX)
Pharmaceutical company Mayne Pharma recently delivered a stunning 379% jump in full year net profit to $37.4 million. In my opinion the best part of this result was the fact that it didn't include the potentially lucrative portfolio of drugs the company has just acquired from industry giants Teva Pharmaceuticals and Allergan. As that deal closed in August shareholders can look forward to their inclusion in FY 2017's results. According to management the acquisition is expected to be significantly accretive to earnings. Overall I believe the acquisition has set Mayne Pharma up to become a pharmaceutical force in the future.
National Storage REIT (ASX: NSR)
It may not be the most exciting investment you can make, but the leading operator of self-storage units provides investors with a great source of income. At present its shares are expected to pay an unfranked 5.9% dividend in FY 2017. According to IbisWorld storage demand has been growing at around 2.3% per annum in the last five years. This is expected to remain steady over the next few years. As the company is the largest self-storage operator based on centre numbers, I feel National Storage is in a strong position to grow both its earnings and dividend steadily for years to come.
