The Motley Fool

2 LICs for a diverse portfolio

Some investors like to get their diversification by buying lots of different shares. However, it gets to a point where you can own too many different shares.

A quick and effective way to get diversification might be to buy listed investment companies (LICs) instead.

A LIC’s only purpose is to invest in other shares on a shareholder’s behalf.

Here are two LICs that could be worth a buy:

Templeton Growth Fund Ltd (ASX: TGG)

Templeton has been around on the ASX since 1987. Its aim is to give investors good exposure to overseas shares. Most Aussie investors have for too much of their portfolios invested in large cap ASX shares.

Instead, some of Templeton’s top holdings include Microsoft, Samsung, Oracle, Alphabet, Apple and Citigroup.

According to Templeton’s latest monthly update for September 2017, the shares were trading at a 10.47% discount to the NTA before tax.

Over the past five years Templeton has generated total shareholder returns of 18% per annum.

It currently has a grossed-up dividend yield of 4.69%.

Hunter Hall Global Value Ltd (ASX: HHV)

The Hunter Hall entities were recently thrust into the limelight as a battle over who would run the fund.

Hunter Hall Global is now being run by Pengana Capital. Its focus is to provide access to investments in 30 to 50 companies, large and small, across the developed and developing markets.

Over the past five years its average total shareholder return per annum has been 18.4%, however this isn’t very relevant with a new investment team.

Some of its top holdings include American Express, B&M European Value, Celgene, Cigna, Dollar General, Medtronic and Oracle.

Hunter Hall Global currently has a grossed-up dividend yield of 8.62%.

Foolish takeaway

Going global could be the best thing for Australian investors to do at this point, particularly if the Australian economy does go backwards.

Other good investment options could be our top growth shares for 2017.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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