The investment team in charge of Australian Foundation Investment Co Ltd (ASX: AFI) (AFIC) has extensive experience selecting S&P/ASX 200 Index (ASX: XJO) shares to generate income and growth returns.
AFIC is the largest and one of the oldest listed investment companies (LICs) in Australia. It aims to provide shareholders with attractive investment returns through access to a growing stream of fully-franked dividends and enhancement of capital invested over the medium to long term.
It owns a mix of ASX dividend shares and ASX growth shares to provide an appealing portfolio of investments that delivers long-term returns.
The large LIC recently gave an investor presentation discussing the ASX shares it has bought.
Interestingly, the business also reported which companies it has been selling. Those sales include National Australia Bank Ltd (ASX: NAB), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), ALS Ltd (ASX: ALQ), Sonic Healthcare Ltd (ASX: SHL), and Telix Pharmaceuticals Ltd (ASX: TLX).
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ASX 200 dividend share buys
There were four names that AFIC highlighted that it had bought, which it classified as income picks.
First, there's electronics and home appliance retailer JB Hi-Fi Ltd (ASX: JBH), which operates JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys, and E&S.
Next, there was supermarket business Coles Group Ltd (ASX: COL).
Third, AFIC highlighted the portfolio had invested in the share registry (and other services) company Computershare Ltd (ASX: CPU).
The last ASX dividend share that was highlighted was major telco Telstra Group Ltd (ASX: TLS).
ASX 200 growth share buys
While AFIC highlighted four income names for the portfolio, there were six ASX growth shares, all of which you could describe as being in the tech space.
AFIC invested in the car online marketplace business CAR Group Ltd (ASX: CAR) (which owns Carsales).
Another investment was Pro Medicus Ltd (ASX: PME), a leading provider of medical imaging software and services to clients like hospitals, imaging centres, and healthcare groups.
The next highlighted choice was Netwealth Group Ltd (ASX: NWL), a financial technology business providing a platform and giving clients increased access to investment options.
Another pick was TechnologyOne Ltd (ASX: TNE), a global provider of enterprise resource planning (ERP) software.
After that, AFIC noted SEEK Ltd (ASX: SEK), the global jobs portfolio business, was another recent investment.
The final ASX 200 share investment that AFIC highlighted was REA Group Ltd (ASX: REA), the owner of realestate.com.au and several other real estate-related businesses.
Overall, I think AFIC has made some brave, smart ASX share moves that I think will play out positively.
