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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.

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

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