MENU

Why WAM Capital Limited owns shares of Platinum Asset Management Limited

Chinese Citizens Watching Stock Market at China Securities in Beijing, China, August 24, 2015

WAM Capital Limited (ASX: WAM) is one of the highest-performing listed investment companies (LICs) and has a great record over the last two decades.

The LIC releases a monthly update with its latest performance and some of its top holdings. Over the last three years the WAM portfolio has returned 17.4% per annum over the past three years, outperforming the S&P/ASX All Ordinaries Accumulation Index by 8.2% per annum.

Its latest top holdings suggest which shares it believes will beat the market in the near future.

One of its top holdings in its December 2017 update was Platinum Asset Management Limited (ASX: PTM).

Platinum is an investment manager that focuses on international shares, particularly Asia. The fund manager has a focus on long-term returns and is index-unaware. Platinum’s portfolios give investors very different exposures to index funds.

The Platinum share price has risen by 95% since 31 May 2017, which is largely thanks to the funds under management (FUM) increasing from $23.96 billion at the end of April 2017 to $27.1 billion at the end of December 2017.

The fund manager has really turned it around and is now attracting more funds under its belt. It also has delivered a good run of outperformance in recent times for a lot of its products. This should grow its normal management fees and also its performance fees.

Platinum has a great chance of delivering a very good result next month and it also helps that Platinum has a grossed-up dividend yield of 5.16%.

Foolish takeaway

Australian investors are looking for a better place for their cash than the Australian market and Platinum could be a big beneficiary over the next few years. It’s currently trading at 25x FY18’s estimated earnings, which could still be good value today.

Asia is a fast-growing region, which is why this stock could also be a great investment.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison owns shares of WAM Capital Limited. The Motley Fool Australia owns shares of 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.

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…

Including:

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!