It's been a while since I initiated a new position in my ASX share portfolio. Sure, I've topped up a couple of my favourite existing positions in the past few months. But I haven't found any new investments I've liked in a while now. At least not enough to prompt enough conviction to part with my own money.
However, that might change very soon. Two investments on the ASX have caught my eye in recent weeks, and there's a good chance that my next ASX buy will be one of them.
The 2 ASX shares that I might buy next
Infratil Ltd (ASX: IFT)
Infratil is a rather unusual ASX share. It is a New Zealand-based conglomerate similar to Washington H. Soul Pattinson and Co Ltd (ASX: SOL) in that it owns a vast portfolio of underlying assets that it manages on behalf of its shareholders. In Infratil's case, these are mostly private investments in the renewable energy, infrastructure and healthcare spaces.
Infratil has been around for a very long time (120 years). Over this period, it has consistently brought it home for shareholders, targeting a total return rate of 11-15% per annum.
It has also delivered on this, with the company reporting that investors have enjoyed a total return (assuming dividends are reinvested) of 21.4% per annum over the 10 years to 29 February 2024.
This track record, combined with Infratil's defensive yet diverse portfolio of investments, indicates a high level of quality to me. As such, I can see myself adding this company to my ASX share portfolio in the near future.
Regal Investment Fund (ASX: RF1)
The Regal Investment Fund is a listed investment trust (LIT) on the ASX. It's a fairly complicated setup comprising stakes in a number of other investments provided by its owner, Regal Partners Ltd (ASX: RPL).
These investments mostly consist of 'alternative assets', including water entitlements, a long-short strategy, private credit and resources royalties.
This LIT is designed to deliver meaningful, risk-adjusted returns with limited correlations to the broader share market. It has notched up some impressive performance wins since listing in 2019, achieving an average of 27.2% per annum over the four years to 30 April and 19.3% per annum since inception.
I like this investment from a diversification view and appreciate its rather stunning past returns. Whilst this LIT doesn't come cheap (charging 1.5% per annum in fees as well as a performance levy on returns above the cash rate), it's still on my watchlist right now.
If the Regal Investment Fund can keep up its impressive performance track record, it might find itself in my ASX share portfolio.
