MENU

Probably, my 4 favourite ASX financial shares right now

National Australia Bank Ltd. (ASX: NAB) shares and Platinum Asset Management Limited (ASX: PTM) shares are not the only ASX-listed companies on my watchlist.

Here are four of my favourite ASX financial companies…

NAB

I prefer NAB shares over Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) because it has a lesser exposure to mortgages. I also like NAB shares because they are cheaper and have a bigger dividend yield.

However, as I have said repeatedly, I’ll need a lower price before I buy in.

Platinum

Platinum is the only ASX share I have bought on the ASX in a long time (I also bought one ETF this year, but that’s a story for another time). I think Platinum is a high-quality active asset management business and likely to regain its appeal in the next market downturn. Fortunately, at today’s prices, long-term investors can buy shares in Platinum at a very reasonable price and with a big dividend yield.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment Management is also in the funds management industry — and benefitted from Platinum’s recent decline. Pinnacle provides the necessary ‘back office’ services and functions for high-quality fund managers – enabling the investors to focus on their investing. Pinnacle has partnered with great investors and is growing its profits quickly. However, the company’s shares appear too expensive for my liking today.

Austock Group Limited (ASX: ACK)

This company is a toddler amongst the others on this list – Austock has a market capitalisation of just $70 million and a price-earnings ratio of 36 times.

The company might sound a little unusual, so bear with me…

Austock markets and sells insurance/investment bonds. Basically, investment bonds enable investors (like you and me) to buy managed funds (similar to Platinum and Vanguard Index funds) in a separate tax structure. This separate structure is normally taxed less than 30%, which is very appealing to high-income earners who are taxed at over 45% (they save 15% tax by investing through an investment bond).

But here’s the real kicker: after 10 years, the proceeds from an investment bond are tax-free.

In my opinion, investment bonds are the next best thing to superannuation. But with the government’s constant meddling in the super honey pot, I believe more people will be turning towards products from companies like Austock.

Foolish Takeaway

I would buy shares in each of these four companies — at the right price. However, at today’s prices I would buy only Platinum. Then NAB (at a lower price). And Pinnacle (at a much lower price). Finally, Austock is a small and potentially difficult one to wrap your head around. However, I think it holds the most growth potential (and risk) of these four companies over the long-term, so I’m actively considering it for a small position in my portfolio.

Rich listers now know the power of dividend shares!

In FY 2018 share market investors are staring down the barrel of ballooning global debt and potential geopolitical powder keg. But thankfully one Foolish expert is revealing 5 of his favorite dividend payers for wealth-creating income whatever the global weather...

But you must act now. This updated report is available for a limited time only, and your copy is 100% free. So don't miss out!

Simply click here to receive your free copy of "Our Top 5 ASX Dividend Shares to Earn You Money in 2018" right now.

Motley Fool Contributor Owen Raszkiewicz owns Platinum shares. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask.

The Motley Fool Australia owns shares of National Australia Bank Limited and Platinum Investment Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.