Platinum Capital rockets 42%

Internationally-focussed Listed Investment Company (LIC) Platinum Capital (ASX: PMC) has announced that its pre-tax net asset value grew 42.3% for the 12 months ending June 2013. In comparison, the company’s benchmark, the MSCI World Index was up 30.5%.

Platinum Capital, which is managed by Kerr Neilson’s Platinum Asset Management (ASX: PTM), has not just been a great investment for shareholders in the short-term, it has also provided outperformance over the long-term as well. Its five-year pre-tax net asset value return is 10.4% (compound per annum) compared with 3.3% from its benchmark. Since inception in 1994, Platinum Capital has returned 12.6% versus 5.2% from its benchmark.

They are an impressive set of performance results and prove again the value of a consistent long-term investment philosophy. The company declared a final dividend of 5 cents, taking dividends for the full year to 7 cents and placing the stock on a yield of 4.3%.

The portfolio’s international focus gives shareholders in Platinum Capital exposure to some of the largest corporations and brands in the world. Currently this includes Microsoft, Samsung and Johnson & Johnson.

Financial year 2013 was a good year for investors across a number of LICs. Another LIC to perform well was Australian Leaders Fund (ASX: ALF). Australian Leaders Fund produced a net portfolio return of 33.9%, outperforming its benchmark by 13.2%. It’s a similarly good story over the medium term as well. For the five years to June 2013, the company returned 18% compared with 2.2% and since inception in February 2004 the return has been 15.4% per annum compared with 8.5% from its benchmark.

At June 30, the three largest positions in the Australian Leaders Fund portfolio were Westpac (ASX: WBC), Wesfarmers (ASX: WES) and Mayne Pharma (ASX: MYX).

Foolish takeaway

Investors don’t always have to do all the work themselves. Some investors find a mix of “outsourcing” part of their portfolio by purchasing one or more LICs and then spending their own time concentrating on adding value through select additions to their portfolio works well. Another major benefit of this approach is it allows immediate diversification for an investor’s portfolio.

Looking for a select idea? Interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!