L1 Global Long Short Fund Ltd is a listed investment company (LIC) which is relatively new to the ASX.

It follows the same investment strategy as the L1 Long Short Fund Ltd (ASX: LSF), which has been listed for more than eight years, but it has a global share focus rather than looking largely evenly at ASX shares and global shares.

For multiple reasons, I think the L1 Global Long Short Fund Ltd is a top pick for retirement (and wealth building).

Good passive dividend income potential

L1 Global Long Short Fund doesn't yet have a long dividend record, but its sibling LIC has demonstrated its desire and ability to grow dividend payouts at a pleasing pace over the last few years, since 2021.

The ASX dividend stock has recently provided guidance that it's going to significantly increase its dividend payouts in FY27, which will help boost the dividend yield.

The LIC has indicated it will increase its annual dividend per share to "at least" 8 cents in the 2027 financial year. That translates to a grossed-up dividend yield of 5.4% at the time of writing, including franking credits.

Impressively, that guided payout represents significant year-over-year growth, and I believe the dividend could grow by another 10% (or more) in FY28 compared to the guided payout in FY27.  

Effective investment strategy

The investment team in charge of this LIC combines valuation (primarily discounted cash flow) with qualitative considerations such as management quality, long-term industry and company structure and business trends to identify attractive investment opportunities.

The fund managers and analysts in charge of this LIC have several thousand company meetings a year, including one-on-one visits with company management, listed and unlisted competitors, customers, suppliers, operational personnel, regulators, consultants, unions and other parties that can help provide a deeper insight.

It's also willing to use short selling, where it bets on share prices going down. That means it can make returns on certain stocks if the share price goes down.

At the end of July 2026, the ASX dividend stock reported that it had delivered a total return of 17.8% since its inception, beating the global share market return of 11.1% in that same timeframe since November 2025.

Since the inception of the specific global long-short strategy, which started in January 2025 and is unlisted, it has returned 58.1% compared to the global share market return of 20.1% in the same time period. Of course, past performance is not a reliable indicator of future returns.

Producing good investment returns can help fund good passive income and capital growth, which is something that the Age Pension can't do.

Diversification

L1 Global Long Short Fund offers investors pleasing diversification.

Its portfolio typically has between 40 to 80 positions across a wide range of sectors and themes, allowing it to make returns in a variety of ways.

The company also provides effective geographic diversification across North America, Europe and Asia Pacific.

While diversification doesn't automatically mean great returns, it can help lower the risk of being too exposed to one particular area. The global investment mandate also means that the ASX dividend stock can search far and wide for opportunities.

How many shares would it take to equal the Age Pension?

The maximum annualised Age Pension that Australians can receive right now is approximately $32,200.

To receive that level of income from L1 Global Long Short Fund, it'd take 402,500 shares if we exclude franking credits and 281,750 shares if we include the franking credits as part of the dividends.

Overall, I'd be excited to own that many shares, though I also think it's a good idea to receive dividends from different sources.

The post 281,750 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

I'm so optimistic about certain names that I've invested in them for my own portfolio, and I'm planning to buy more in the coming months and years.

In my view, the names below are two of the most compelling passive income stocks right now.

L1 Global Long Short Fund Ltd (ASX: GLS)

This business is a listed investment company (LIC) and it's a recent addition to my portfolio. It's similar to the L1 Long Short Fund Ltd (ASX: LSF), except it only invests in global shares, rather than a mixture of ASX shares and global shares.

The globally-focused business focuses on company-specific opportunities where valuation and earnings delivery can drive returns across a "range of potential macro environments".

In its monthly update for July 2026, it noted that its median 'long' position is trading on a price/earnings (P/E) ratio of 10, supported by double-digit earnings per share (EPS) growth and modest debt levels.

As its name suggests, the LIC can also short businesses, which essentially means it can bet on certain names in the portfolio going down in value. Therefore, it can make investment returns whether the market goes up or down.

The ASX dividend share can give Australian investors exposure to a diversified portfolio, with investments (and short positions) across North America, Europe and the Asia Pacific regions.

L1 Group Ltd (ASX: L1G) only started managing this LIC in November 2025, but its portfolio's net return has been 17.9% since then, outperforming the global share market by 6.6% in that time.

The global LIC has provided dividend guidance of at least 8 cents per share in FY27, with quarterly dividends of 2 cents per share. It has also stated an intention to pay sustainable and growing dividends over time.

Its guidance implies a guided grossed-up dividend yield of at least 5.4%, including franking credits, at the time of writing.

Rural Funds Group (ASX: RFF)

Rural Funds is the other ASX dividend share I want to talk about. It's a real estate investment trust (REIT) that provides exposure to a portfolio of agricultural properties.

The business offers a diversified portfolio across cattle, almonds, macadamias, vineyards and cropping.

The FY26 result highlighted the strength of the REIT's ability to deliver good passive income despite challenging conditions in relation to higher interest rates.

Rural Funds reported that FY26 net property increase grew 5.7% thanks to additional rental income on capital expenditure (primarily macadamia orchards) and indexation. Its rental contracts have income growth from fixed annual increases and inflation-linked increases.

It also reported that adjusted funds from operations (AFFO) – the net rental profit – rose by 1.7%, despite interest costs increasing significantly.

The business has announced a few asset sales, at a premium to the stated book value, which will decrease interest costs and put the balance sheet in a healthier position. It had adjusted net asset value (NAV) of $3.22 as of June 2026 (which was a 4.5% rise year over year) – that means, it's trading at a 40% discount to the stated value.

It expects to pay a distribution per unit of 11.73 cents in FY27, which is a distribution yield of 6%.

The post 2 great ASX dividend share buys for passive income in September appeared first on The Motley Fool Australia.

I'm going to highlight three investments I expect big things from over the next three to five years, which I'd happily invest $20,000 in.

Below are two of the ASX's leading growth companies and one compelling exchange-traded fund (ETF).

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online retailers in Australia, selling hundreds of thousands of homewares and furniture through its website. A significant portion of the items are shipped straight from the supplier, reducing the need for the company to hold inventory and warehouse space – it creates a capital-light model for the business.

The company is growing rapidly and this is steadily giving it stronger scale benefits. Plus, it's deploying technology and AI throughout its business, which is helping with costs and boosting customer conversion.

During this period of weaker consumer conditions, the ASX growth share is focused on increasing profitability. It expects to approximately double its operating profit (EBITDA) in FY27, even if trading conditions are challenging.

Over the longer-term, I expect rising e-commerce adoption in Australia can help the company increase its market share further. I'm also hopeful that the home improvement segment can continue growing in size and become a significant contributor in the coming years – home improvement revenue rose 46% in HY26 off a small base.

According to the projections on Commsec, the ASX growth share could grow its earnings per share (EPS) by around 160% between FY26 and FY28, with it trading at 32x FY28's estimated earnings at the time of writing.

Global X S&P World Ex Australia GARP ETF (ASX: GARP)

This is an ETF focused on finding quality growing businesses at a reasonable price, with solid financial strength. There are 250 international businesses in this portfolio that demonstrate 'GARP' characteristics – it offers good diversification across countries and sectors.

There are three boxes that stocks need to pick. First, they must demonstrate growth with both sales and earnings. Second, they should be good value on a price to earnings (P/E) ratio basis. Third, they must be quality in terms of low debt levels a high return on equity (ROE).

This high-quality fund has an annual management cost of just 0.3%. Impressively, it has delivered an average return per year of 17.5% since inception in September 2024. Of course, past performance is not a guarantee of future performance.

L1 Group Ltd (ASX: L1G)

Plenty of funds managers go through ups and downs, which can give investors buying opportunities. L1 is a highly respected funds management business with a compelling future with a number of high-performing funds.

Some of its funds like L1 Global Long Short Fund Ltd (ASX: GLS) have a strong track record for delivering returns, which is a very powerful tailwind for growth of funds under management (FUM) and management fees. The great returns also help attract more FUM.

The ASX growth share has highlighted a number of other factors that could help earnings rise in the coming years such as joint ventures, acquiring other fund managers and launching more strategies.

Additionally, the business is working on unlocking synergies from the Platinum acquisition.

According to the projection on Commsec, the ASX growth share is valued at 23x FY27's estimated earnings and is forecast to grow earnings per share (EPS) by 25.5% in FY27.

The post Where I'd invest $20,000 into ASX growth shares right now appeared first on The Motley Fool Australia.

The power of compounding should never be underestimated. When left to compound for a decade, an investment can grow significantly.

We're going to look at two investments I think could deliver seriously impressive returns from their current valuations.

Let's get into these two share options on the ASX.

L1 Group Ltd (ASX: L1G)

L1 Group is a leading fund manager offering a range of high-performing strategies for investors to take advantage of. The listed investment company (LIC) L1 Global Long Short Fund Ltd (ASX: GLS) is one of the newest additions to L1 Group's stable of offerings.

It adopts strategies that allow investors to invest in areas such as ASX shares, international shares, global shares and so on.

L1 Group has a good track record of investment performance, which helps push up the funds under management (FUM) organically, helping increase management fees, performance fees and overall profitability.

In the coming years, I expect L1 Group to launch new funds, potentially take over other fund managers (as it did with Platinum), and pursue partnership strategies.

According to the projection on CMC Invest, the business is trading at around 22x FY27's estimated earnings, with a possible 29% growth of earnings per share (EPS) in FY28. In my view, this makes the ASX share very reasonable value.

Betashares Global Quality Leaders ETF (ASX: QLTY)

One of the best places to invest for the next decade, in my opinion, is high-quality international shares.

This exchange-traded fund (ETF) is all about giving investors access to great businesses that tick a number of boxes.

There are four elements that a business must have to count as a global quality leader.

First, it should have a high return on equity (ROE). That means the companies make a good level of profit for the amount of shareholder money retained within the business. It could also suggest a good return on future additional retained profit.

Second, these companies should have a low debt-to-capital ratio. A low debt level is a good sign of financial health.

Third, these businesses rank highly on cash flow generation ability.

Finally, they should have stable earnings. In other words, it's rare for profit to go backwards. If profit rarely declines, that suggests profit is usually rising – a great tailwind for share price growth.

With a portfolio of 150 (non-ASX share) names, it can give investors diversification and generate good returns. Since inception in November 2018, the QLTY ETF portfolio has returned an average of 13.25% per year. That's a solid level of compounding, in my opinion.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

At the time of writing, in the last 12 months, Nvidia shares have gone up by 47%, while the L1 Group share price has jumped by 108%.

Why has the ASX stock risen so much?

I believe a significant portion of the return can be put down to the acquisition of/merger with Platinum Asset Management. Investors are much more excited about the outlook of the business under L1's management than Platinum.

L1 has an impressive track record, delivering outperformance with its ASX shares, global shares and gold shares strategies, with each of those significantly outperforming the S&P/ASX 200 Index (ASX: XJO) since the inception of those respective strategies.

Having a good investment performance as a fund manager is integral for a couple of key reasons. Firstly, it organically helps a fund manager grow their funds under management (FUM) – an essential driver of revenue and earnings.

Additionally, great fund performance can help attract new FUM inflows, further boosting the ASX stock's FUM.

One of the latest moves by the business was to launch the listed investment company (LIC) L1 Gold Fund (ASX: LGF), which raised $950 million and started trading on the ASX in April. This helps lock in more funds within a closed structure, as opposed to exchange-traded funds (ETFs) which are open-ended where it's easy for clients to permanently remove FUM from a fund manager. Shares of LICs are sold from one investor to another – the FUM still exists.

Out of L1 Group shares or Nvidia shares, I think I'd prefer the funds management business.

Excellent outlook

Nvidia is certainly a great business, operating at the pinnacle of one of the strongest growth areas of the global economy right now.

But, it's worth asking how much more demand can continue increasing from where it is today and what the price/earnings (P/E) ratio is implying.

L1 Group points to a number of appealing growth areas including growth of existing funds through performance and flows, extension of strategies from the existing investment team (such as L1 Global Long Short Fund Ltd (ASX: GLS) ), joint ventures and potentially further acquisitions of existing fund managers.

Further growth of the ASX stock's profit could be boosted following the integration of Platinum and the synergies that's expected to deliver.

According to the forecast on Commsec, the ASX stock is valued at less than 20x FY27's estimated earnings, with FY27 profit projected to rise by approximately 25% year-over-year compared to the forecast for FY26.

The post Meet the $1 ASX stock that's obliterated Nvidia in the last 12 months appeared first on The Motley Fool Australia.

I'm going to look at two ASX shares that could be excellent investments to own for the years ahead because of their strong underlying growth and the fact the share prices are cheaper than they used to be.

Below are two of my favourite ideas for long-term returns.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is a business that's heavily involved in the pharmacy industry as both a chemist brand owner and product distributor. Its key business is Chemist Warehouse, which I'd describe as the leading operator in the sector.

The business recently announced an update that included a number of positives that I think makes it an even stronger buy.

Firstly, Chemist Warehouse's sales remain incredibly strong.

Australian Chemist Warehouse-branded stores saw network sales growth of 16.7%, powered by 14.4% like-for-like (LFL) sales growth. The international division, which includes Ireland, New Zealand, Dubai, and China saw overall sales growth of 24.7%, with LFL growth of 11.8%.

The fact the core business continues to perform so strongly is very positive for the foreseeable future, in my opinion. I believe investors should never lose sight of the performance of the key element of a company's earnings, even if it has exciting growth plans for new products or services.

Second, the ASX share announced that Chemist Warehouse is entering the UK by acquiring 75% of a number of Greenlight stores which are based in London. Chemist Warehouse will licence the Chemist Warehouse brand and intellectual property and provide retail support, including ranging, store layout, inventory management, and marketing support.

Some of the Greenlight locations will be developed or relocated, becoming Chemist Warehouse stores. The first phase will focus on rebranding and developing up to five stores initially. If this proves successful, more stores could be developed.

Finally, the company is investing in a new distribution centre in New Zealand, which will help it continue growth in that market. It's aiming for more than 100 Chemist Warehouse stores in New Zealand in the long term, where there's currently approximately 70.

All of the above bodes well for the ASX share's long-term future. The UK is a big market and could be a great growth driver in the years ahead.

L1 Global Long Short Fund Ltd (ASX: GLS)

I believe every Australian would benefit from having a good allocation to international shares, though the international/US share market is increasingly becoming a bet on a few large US tech names and the theme of AI in general.

There are plenty of appealing investments in the international market, which could deliver strong returns.

Instead of trying to search across the entire global share market for great ideas, I'm very willing to have high-performing fund managers provide the diversification and returns I'm after.

L1 Global Long Short Fund is a listed investment company (LIC) that utilises both long-term investing and short-selling to find opportunities. Some of the sectors it's invested in recently includes copper, gold, construction materials, and banking.

According to the fund manager, the ASX share's median 'long' position trades at around 8x FY27's estimated earnings, with double-digit earnings growth and modest debt levels.

Past performance is not a reliable indicator of future returns, but since the strategy's inception in January 2025, it has returned an average of 53.9% per year. I think this ASX share is one worth watching.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

However, I can make exceptions. And I am seriously considering making one when it comes to the L1 Global Llog Short Fund Ltd (ASX: GLS).

The L1 Global Long Short Fund is a listed investment company (LIC) that has quite an interesting history. In fact, not too long ago, it had a different name and a different manager. Yep, the L1 Global Fund was formerly known as Platinum Capital Ltd. However, the manager of this LIC had been struggling for a number of years, and decided to accept a takeover offer from L1 Group Ltd (ASX: L1G). Upon the completion of this takeover, the L1 Global Long Short Fund was born.

L1 was already famous for its L1 Long Short Fund (ASX: LSF) LIC, which, despite a rocky start, has gone on to become one of the ASX's best-performing managed investments. That fund has an ASX-focused mandate, though. L1 wanted to build a fund that was unconstrained in its scope, and we have it here on the ASX today with the L1 Global Log Short Fund.

Like its locally-focused Long Short Fund, the L1 Global Fund employs both traditional 'long' investing alongside short-selling in order to make returns. This makes it quite unique on the ASX, which only has a handful of funds that employ both strategies. Whilst risky, using both can enable this LIC to profit in both bull and bear markets.

Is this ASX share a no-brainer buy in 2026?

Now, the L1 Global Long Short Fundhas several traits that would normally put me off buying it. For one, it uses short-selling, which is a tactic I don't usually like to see in my investments. For another, it charges a steep management fee of 1.44% per annum (plus a performance fee).

However, I can't ignore the numbers. As we covered a few months ago, L1's team trialled the strategy that it now uses for the Global Long Short Fund. This trial saw L1 record a return of 67.5% between January and October. Since the start of October, this LIC has risen by almost 35%.

If this breakneck performance can be maintained over a number of years and all economic and market cycles, it could mean L1 Global Long Short Fund is one of the best shares on the ASX.

So I'll be keeping a close eye on this investment. If management keeps making the right calls, I might have to buy some shares of my own.

The post This ASX share is up 40% in 6 months and I want to buy it appeared first on The Motley Fool Australia.

They can be particularly useful if you're looking to add global stocks to your portfolio. Rather than having to research and buy a dozen (or so) international stocks, you can get that diversity, and more, from an ETF with a single investment.

Below we look at two ASX ETFs and one listed investment company (LIC) that hold a number of promising and potentially undervalued global stocks (courtesy of The Bull).

If you're unfamiliar with LICS, they're similar to ETFs in many ways, but they are closed-end funds. Meaning they issue a fixed number of shares on the ASX that investors can buy. ETFs are open-end funds which buy and sell shares depending on market demand.

With that said…

Two buy-rated ASX ETFs for global stock investors

First up we have the Betashares Global Shares Ex US ETF (ASX: EXUS).

As the name implies, the fund invests in global stocks outside the United States.

"The US accounts for more than 70% of global market size. Some investors are seeking further diversification and less concentration risk," said DP Wealth Advisory' Andrew Wielandt, who has a buy rating on the ASX ETF.

According to Wielandt:

At end of January 2026, main holdings in this ETF included ASML, Roche and HSBC. Geographically, exposure at the end of January 2026 included Japan, the United Kingdom and Canada. While the ETF was only listed on the ASX in November 2025, the index it follows has shown returns of more 12 per cent per annum over the past five years.

Which brings us to the second ASX ETF focused on global stocks outside of Australia, the BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL).

FUEL holds some of largest global energy companies, excluding companies listed in Australia, hedged into Australian dollars.

"I have been bullish on commodities for the past two years. The uptrend in precious metals was followed by base metals," said Fairmont Equities' Michael Gable. "Now, I believe the energy sector is poised for a bull run in response to increasing demand."

Explaining his buy rating on FUEL, Gable concluded:

This exchange traded fund captures the biggest global oil and gas companies. Not only are many investors still underweight in the energy sector, but this ETF is now breaking out of a multi-year trading range. This means the ETF is most likely at the start of a major uptrend, which should last throughout 2026, in my view.

Don't forget this internationally focused ASX LIC

Moving from ASX ETFs to an ASX LIC, we find the L1 Global Long Short Fund Ltd (ASX: GLS). As a long-short fund, GLS has the potential to gain from both rising and falling stocks.

"GLS targets high quality undervalued companies across developed markets," DP Wealth Advisory's Wielandt said. "The fund is managed by co-chief investment officers Raphael Lamm and Mark Landau."

Commenting on his buy rating on the ASX LIC, Wielandt explained:

Both chief investment officers have established a top track record in operating long and short strategies, taking advantage of market rises and falls, depending on how their portfolio is positioned.

With consistent exposure across Asia, North America and Europe, the L1 Capital team has driven risk-adjusted returns that aren't held hostage to following the MSCI global benchmark. We expect the fund's solid performance from June 2025 to continue.

The post Seeking exposure to promising global stocks? Here are 2 quality ASX ETFs (and 1 LIC) to buy today appeared first on The Motley Fool Australia.

Since duplicating its managed fund into a listed investment company (LIC) back in 2018, this LIC's portfolio has generated an average return of 12.7% per annum. That stretches to 23.1% per annum over the past five years.

Now, the L1 Long Short Fund is primarily an Australia-focused investment, with ASX stocks making up at least 70% of the fund at any given moment. It is a rather unusual LIC in that it uses a long-short strategy. This involves traditional investing in other shares in hopes of future returns (long investing). But also short-selling companies that it thinks are in for rough times ahead.

This long-short strategy has clearly been effective at generating returns for its investors on the Australian market. But L1 Capital has just launched a new ASX fund that it hopes can replicate the success of its ASX-focused cousin on the international stage.

ASX veterans might find a bell ringing when we mention Platinum Asset Management. Platinum used to be one of the ASX's most sought-after stock pickers. But a recent run of underperformance has left it struggling. As a consequence, Platinum Asset Management's Platinum Capital Ltd listed investment company was approached by L1 Capital with a takeover offer. The offer was accepted, and, earlier this month, was merged into a new LIC that will take L1's long-short strategy to global markets.

That LIC is now known as L1 Global Long Short Fund Ltd (ASX: GLS), and it might be worth a closer look.

An ASX stock that has banked 70% since January?

We've already touched on the ASX-focused L1 Long Short Fund's previous success. Even though the L1 Global Long Short Fund has only been on the ASX in its new form for a few days, stock investors have a preview of its potential success.

In a merger presentation, L1 fund managers Raphael Lamm and Mark Landau seeded an initial version of what has now become the L1 Global Long Short Fund back in January in a trial run of sorts. Between 1 January and 31 October, that trial run returned a whopping 67.5%. 

Past performance is never a guarantee of future success, of course. But no one can deny that this new ASX stock is off to a flying start.

Some of the long positions that can currently be found in the L1 Global Long Short Fund's portfolio include Alcoa, ING and Zillow. Meanwhile, the fund has shorted US electric car maker Lucid Motors.

L1 will have to keep up its outperformance for new investors to get bang for their buck, though. After an initial grace period, this new ASX stock will charge a management fee of 1.4% per annum. That's in addition to a performance fee.

The post This new ASX stock has returned 70% since January appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Endeavour Group Ltd (ASX: EDV)

The Endeavour Group share price is down 2% to $4.07. This morning, Bell Potter retained its hold rating and $4.50 price target on the drinks giant's shares. It said: "We retain our Hold rating and make minor EPS revisions. We see upside to FY26e VA consensus Retail revenue estimates if liquor spending growth picks up due to falling interest rates. However, the competitive threat presented by lower prices at Liquorland suggests margins are likely to be pressured in FY26e."

Platinum Capital Ltd (ASX: PMC)

The Platinum Capital share price is down 1.5% to $1.39. This follows news that it has decided to withdraw a proposed restructure via a scheme of arrangement with Platinum International Fund Complex ETF (ASX: PIXX). The company pulled the plug after looking at the anticipated voter turnout and L1 Capital's plan to vote against the scheme. Management believes the scheme would not receive sufficient support to meet the 75% approval threshold required for a scheme of arrangement.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is down over 11% to $17.98. The catalyst for this has been an update on the radiopharmaceuticals operating expenses. Telix advised that operating expenses, excluding investment in research and development, are expected to be approximately 36% of revenue in the first half of FY 2025. It revealed that this reflects the expanded business activities and its ongoing strategy to reinvest earnings in commercial growth and pipeline development opportunities. Some investors may be concerned that this will put a lot of pressure on its balance sheet.

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price is down 2% to $5.42. This morning, the telco revealed plans to return $3 billion to shareholders via a capital return. This follows the sale of the Vocus business earlier this year. However, taking some shine off the news was a ratings update from S&P Global. It has assigned TPG Telecom a BBB rating with Outlook Negative. It said: "The negative outlook reflects near-term execution risks associated with TPG's various balance sheet management initiatives, including completion of a planned capital reduction and its proposed capital reinvestment plan."

The post Why Endeavour, Platinum Capital, Telix, and TPG shares are falling today appeared first on The Motley Fool Australia.

Today's move caps off what has been a stellar week and month for the company. Platinum shares are up more than 11% over the past 5 trading days, and up more than 26% since the start of November.

Who is Platinum Asset Management?

Platinum is one of the most famous asset managers on the ASX, despite only starting out in 1994. Platinum made a name for itself by focusing on companies listed outside Australia's ASX, one of the first ASX fundies to do so.

Platinum was co-founded by ASX investor and billionaire Kerr Neilson, with financial backing from the famous American billionaire (and the 'man who broke the Bank of England') George Soros.

Mr. Neilson sat at the helm of the company for almost 2 decades before stepping down as chief investment officer in 2013. He remained the chief executive officer of Platinum until 2018, when he handed the role to the current occupant Andrew Clifford. Mr. Clifford also serves as the current chief investment officer. Mr. Neilson remains at Platinum in the capacity of executive director though, and, according to the company, "remains fully engaged in the business and continues to work on the generation of investment ideas".

Despite this blue-blooded reputation, Platinum has been struggling in recent years. The company's shares were trading as high as $9 back in 2015, and as high as $8.72 as recently as 2018. That means Platinum shares are down almost 56% from these 2018 highs on current levels. That doesn't compare well with other large ASX fund managers.

As an example, take another ASX fund manager, run by another famous billionaire investor in Hamish Douglass, and with a similar focus on global shares to Platinum – the Magellan Financial Group Ltd (ASX: MFG). The Magellan share price has risen close to 150% over the same period Platinum shares have fallen almost 56%.

So why has Platinum been underperforming so drastically in recent years?

Underperformance dogs Platinum

Platinum follows a 'value investing' philosophy in a similar vein to the legendary Warren Buffett. It offers a range of unlisted managed funds, as well as some listed investment companies (LICs).

The company describes its methodology as a "contrarian, long-term investing philosophy", seeking out "companies whose true worth and prospects are yet to be fully recognised by the market". Platinum tells investors that "we look beyond short-term market turbulence caused by events of a transient nature to seek out 'unfashionable' companies whose actual worth is greater than the value implied in their present share price."

Value investing not so valuable

However, value investing has faced many problems in recent years, having to navigate a market that has been more willing to reward a 'growth investing style', especially in the tech space.

We can see this reflected in the performance of some of Platinum's flagship funds. For example, the Platinum Capital Ltd (ASX: PMC) LIC has returned an average of just 4.3% per annum over the past 5 years, compared with 8.5% p.a. for its benchmark, the MSCI AC World Net Index. The unlisted Platinum International Fund has fared even worse against the same benchmark, delivering just 0.1% in returns per annum over the past 5 years.

This underperformance is likely the reason why Platinum has been dealing with fund outflows for a while now, and presently manages just under $22 billion in assets. In contrast, Magellan now manages more than $100 billion.

My Fool colleague Tony Yoo reported on this phenomenon of value underperformance in September, and quoted Betashares senior investment specialist Cameron Gleeson:

Falling rates increase the present value of future cash flows, and this typically will have an especially positive impact for companies with strongly growing earnings… with the benefit of hindsight it's perhaps not surprising that we have seen growth outperform value for over 10 years now.

What about the recent gains?

Although Platinum has evidently been struggling in recent years, the company's recent share price performance would certainly be encouraging for investors.

In the company's recent annual general meeting, Platinum reported that its funds under management had increased by 1.9% between 30 June and 31 October 2020. This was on the back of some recent good performance from its funds, as well as a rising tide on global share markets. Thus, it's likely that investors who are watching the markets climb higher and higher this week are assuming the benefits will disproportionally benefit Platinum.

The post ASX stock of the day: Platinum (ASX:PTM) shares up 6% appeared first on The Motley Fool Australia.

There's a huge number of LICs available on the market now – far too many to keep up with – many with different strategies. If you're looking for a high-income today, here are 2 high yield LICs you might want to consider.

Platinum Capital Limited (ASX: PMC)

This is an international focused LIC, managed by Platinum Asset Management Limited (ASX: PTM). It's been running since 1994 and has had market-beating performance over its 24-year history. Platinum Capital has had a return (after fees) of 12% per annum over that time, compared to the MSCI World Index return of 6.9% per annum, both including dividends.

The portfolio is currently heavily weighted towards Asia which has caused underperformance in recent years. Despite this, the company is sticking to its guns and sees many companies in this area with strong prospects and believe they're currently undervalued.

Shares trade at a premium to NTA of over 10%. The current dividend yield is 8%, including franking credits.

WAM Capital Limited (ASX: WAM)

WAM is an ever-popular choice with retail investors who are looking for income. This LIC focuses on buying small and mid-sized companies which look undervalued and WAM believes will soon be re-rated higher by the market.

The unusual thing is WAM tends to hold a lot of cash, even more so when the market is going through periods of volatility. Currently, the portfolio is 35% cash. It's a strategy that works for the company, with returns before fees since 1999, of 16.9% per annum. That compares to the All Ords Accumulation Index return of 8% per annum.

WAM's focus is paying out large and growing dividends from gains realised in the portfolio. Shares are trading at a premium to NTA of around 20%. The current dividend yield is 9.9%, including franking credits.

Foolish takeaway

Both LICs are trading at premiums currently. This tells me that investors buying these shares are more focused on the dividend income than the NTA value of the company. Both are quality LICs that are well managed and have proven themselves over time, but I wouldn't pay the large premium they're trading at today.

The post 2 proven LICs with massive fully franked dividends: should you buy? appeared first on The Motley Fool Australia.

High yields and franking credits mean it's paradise for an income focused investor. The following high yield shares are worth putting on your watchlist…

JB Hi-Fi Limited (ASX: JBH)

Despite fears of Amazon destroying retail in Australia, JB Hi-Fi is still performing well. This year it delivered another year of profit growth, with earnings up by 9.2%. Sales are continuing to grow, this year up 21.8%, and online sales jumping by 32.1%, which is a good sign that JB Hi-Fi can compete in an online world.

It's still early days for online retail in Australia, so we'll have to see if competition intensifies over the next few years. JB Hi-Fi currently trades on a grossed-up dividend yield of 7.6%.

Platinum Capital Limited (ASX: PMC)

This is an international focused LIC, managed by Platinum Asset Management Limited (ASX: PTM). It's been running since 1994 and has had solid performance over its 24-year history.

Platinum Capital's portfolio is heavily weighted towards Asia, making up just over 50% of the portfolio. The company is bullish on the Asian region and currently sees many equities undervalued, based on fears of trade wars among other things.

As of late, Platinum has been recycling profits from its technology holdings and investing into the more out of favour energy, materials, and industrial sectors. Shares currently trade at a premium of  5%-10%. The current grossed up dividend yield is 8.1%, including franking credits.

Centuria Metropolitan REIT (ASX: CMA)

This is a leading ASX-listed metropolitan office REIT. The real estate investment trust owns 19 high-quality metropolitan assets worth around $900 million. Currently, it's undertaking an equity raising to acquire a further 4 buildings to add to its portfolio, which are in targeted inner metropolitan locations.

Centuria is diversified across the major capital cities and the portfolio's occupancy rate is 97.8%. Fixed rental increases across the portfolio average 3.6% per annum, which underpins earnings and should lead to growth over time. Shares currently trade on a distribution yield of 7.4%.

Foolish takeaway

These companies all produce high levels of income but probably won't shoot the lights out in terms of growth. To find out The Motley Fool's favourite dividend picks for income and growth, check out the free report below.

The post 3 high yield shares with juicy dividends appeared first on The Motley Fool Australia.

Dividend yields are high compared to overseas, plus those dividends come with franking credits attached, making the after-tax income even more attractive.

But believe it or not, it's actually possible to invest internationally and still receive a good level of income, even fully-franked no less. It's possible by investing in Aussie listed investment companies (LICs) which invest globally, yet pay tax in Australia.

Platinum Capital Limited (ASX: PMC)

This LIC is managed by Platinum Asset Management Limited (ASX: PTM) and has been running since 1994 with solid performance over its 24-year history.

Performance after all costs and fees has been 12.4% per annum, versus the MSCI World Index return of 7.1%, since 1994, both including dividends.

Platinum Capital invests globally, with Asia Pacific making up just over 50% of the portfolio currently. This is by design as Platinum is bullish on the Asian region and currently sees many equities undervalued, based on fears of trade wars among other things.

The portfolio includes stakes in businesses located in China, Japan and Korea. It also has other investments listed in Germany, Switzerland and elsewhere.

The company targets undervalued shares with earnings growth potential and will also look to recycle profit into additional securities trading at attractive prices relative to the outlook for these companies.

For income investors, Platinum pays tax on these profits in Australia and generates a decent amount of franking credits. Because of this, the company is able to pay out a decent level of fully-franked dividends each year.

It's one of the better run LICs out there, with a long performance history (after fees), a knowledgeable investment team and a decent dividend. Shares currently trade at a premium to NTA of 13%, and a dividend yield of 7.6% including franking credits.

Other contenders?

The other obvious choice to emerge for Aussies wanting to invest internationally, without giving up income, is WAM Global Ltd (ASX: WGB). Through its various LICs, Wilson Asset Management (WAM) always place a strong emphasis on providing shareholders with a strong level of dividends. I expect WAM Global to be run the same way.

However, I'd choose Platinum Capital over WAM Global today, because Platinum has proven themselves over 20 years, whereas WAM hasn't yet built a track record of managing international equities. I'll be watching with interest to see how each company fares over the next few years.

The post How to own international shares without sacrificing dividends appeared first on The Motley Fool Australia.

Aristocrat Leisure Limited (ASX: ALL) is a high-growth stock that has traditionally developed gaming machines. The company has recently made significant investments in acquiring two online social gaming firms, so it will be interesting to see how this new strategy plays out in 2018.

Webjet Limited (ASX: WEB) believes it can comprehensively beat the broader travel booking industry in both business-to-business and business-to-consumer sales over the next three years. If Webjet can achieve its lofty targets, it should be a big outperformer.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is an investment conglomerate with significant interests in ASX-listed companies, private equity and property. The firm takes a value-oriented, long-term approach to investing which has produced a 12.8% per annum return over the last 15 years. It boasts of being one of just two ASX-listed companies to have increased its dividend every year for the past 17 years.

MNF Group Ltd (ASX: MNF) and TPG Telecom Ltd (ASX: TPM) are two telecommunication companies, though that's about where the similarities end. MNF is a fast-growing, small-cap firm that provides VOIP solutions for households and businesses, while TPG is Australia's second-largest fixed-line broadband provider. TPG has historically been the lowest-cost operator in its industry, which could mean trouble for the competition when it becomes Australia's fourth mobile network operator in 2018.

Bapcor Ltd (ASX: BAP) is an automotive parts and service provider that listed on the ASX on 2014. Since then, the company's share price has increased 175% and I believe further gains are on the way. 80% of Bapcor's revenue is derived from its trade and wholesale business segments, which consists of recurring sales and requires a high level of expertise and customer service.

Challenger Ltd (ASX: CGF) was an early mover in annuity sales in Australia, and is benefitting from rising demand for these guaranteed return investments. Assets under management (AUM) is a key earnings metric for investment firms, and Challenger has made a strong start to FY2018, increasing AUM by 5% in the first quarter.

Platinum Capital Limited (ASX: PMC), MFF Capital Investments Ltd (ASX: MFF) and WAM MICRO FPO (ASX: WMI) are all Listed Investment Companies but with different investment strategies. Platinum invests in overseas markets with a particular focus on Asia, MFF's largest holdings are in the United States and WAM Micro seeks undervalued Australian companies with a market capitalisation less than $300 million.

The post 10 stocks to get you started investing in 2018 appeared first on The Motley Fool Australia.

Macquarie Group Ltd's (ASX: MQG) dividend has grown strongly over the last five years, with a compound annual growth rate of 21%. The investment firm currently yields around 5%, though this is somewhat dampened by the fact it is only partially franked as significant group earnings are generated overseas. Macquarie is expecting to increase profits in FY2018 and this should mean higher distributions to investors.

Woolworths Group Ltd (ASX: WOW) may be a surprise inclusion on this list, given the consumer staples giant's fully-franked yield of just 3%. I'm expecting higher dividends to come in 2018, as the company recovers from the Masters debacle and regains its foothold in the supermarket business.

Woolworths increased its dividend by 9% to $0.84 in 2017, but this amount is still well shy of the $1.39 that was distributed in 2015. A stronger focus on core business activities has improved recent performance and outlook, as the company seeks to sell its national petrol station network to BP.

The ACCC recently announced it intended to block the $1.8 billion sale, and while disappointed by the decision, both firms appear committed to getting a deal done. That may require divestment of certain stations to appease the regulator, perhaps to other operators like Caltex with whom Woolworths currently has a relationship. Proceeds from the eventual sale of the petrol business could be used to improve existing supermarket fit-outs, shore up the balance sheet and increase the dividend.

WAM Capital Limited (ASX: WAM) has increased its dividend every year for the last five years and now yields more than 6%, fully-franked. WAM Capital is the flagship listed investment company (LIC) from Wilson Asset Management with an investment focus on small to medium sized ASX-listed companies. Since inception in 1999, WAM Capital has outperformed its benchmark ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) index by an average 9.4% per annum.

Platinum Capital Limited (ASX: PMC) is another LIC which pays a healthy dividend, this time from Platinum Asset Management Limited (ASX: PTM) and with an investment objective to gain exposure to businesses from overseas markets. This LIC has a current yield of almost 5%, fully-franked, and has achieved a total average return of 12.8% per annum to shareholders since 1994.

The post 4 top income stocks for 2018 appeared first on The Motley Fool Australia.

Of late, there has been a strong increase in the number of LICs with a global investment mandate that provide investors access to markets they may normally find difficult to participate in.

Investors can also choose LICs which focus on microcap stocks to large cap, value or growth investing, or even "ethical" assets.

Below, I've highlighted three top LICs, each with different investment mandates, that I believe will continue to reward investors over the long-term.

WAM MICRO FPO (ASX: WMI) is the latest LIC offering from Wilson Asset Management. As the name suggests, WAM Microcap has a microcap focus – investing in undervalued growth companies with a market capitalisation of less than $300 million.

Since inception in June 2017, WAM Microcap has returned 23.1% to 30 November, before expenses fees and taxes. That performance is 8.1% higher than the benchmark ALL ORDINARIES (Index: ^AXJO) (ASX: XAO) index and has driven the LIC's share price up 24% since listing.

Although I usually recommend investors chose LICs with a strong track record, Wilson Asset Management has a long history of outperformance through its mid and small-cap LICs and I expect this will extend to microcap investing.

MFF Capital Investments Ltd (ASX: MFF) was previously managed by Magellan Financial Group Ltd (ASX: MFG) and continues to be run by one of Magellan's co-founders and MFF's largest shareholders; Mr. Chris Mackay.

MFF's strategy is to invest in international and Australian-listed companies, with a current focus on large US stocks like Visa, Mastercard and Bank of America.

Over the last five years, MFF's Net Tangible Asset (NTA) plus dividends has increased an average 21.8% per annum. Such strong performance has driven MFF's share price 140% higher during the same timeframe, and insider Chris Mackay has been adding to his already substantial holdings in 2017.

After a disappointing 2016, shares in international LIC Platinum Capital Limited (ASX: PMC) have increased 27% so far in 2017. The portfolio is managed by founder and high-profile investor Mr. Kerr Neilson, returning an average 12.8% per annum since inception in 1994.

In addition to significant US investments, the LIC has holdings in listed companies in Asia and Europe. Included in Platinum's top ten positions are Samsung Electronics, Alphabet Inc and Tencent Holdings.

The post My top 3 listed investment companies (LICs) to own in 2018 appeared first on The Motley Fool Australia.

It was an unlisted managed fund until December last year when it converted itself to a listed investment trust where it's now known as FORAGER AU UNITS (ASX: FOR).

Forager's Australian Shares Fund's top 5 investments to 30 June 2017 were Macmahon Holdings Limited (ASX: MAH), Reckon Limited (ASX: RKN), NZME LTD FPO NZX (ASX: NZM), Cardno Limited (ASX: CDD), and Enero Group Ltd (ASX: EGG).

Their willingness to depart from the index and focus on special situations sets them apart from many of their competitors in my opinion.

But funny things can happen when a managed fund closes and lists itself on the ASX.

The value of a fund at any point is now set by the on-market buyers and sellers of its securities, and the fund's day-to-day value is less influenced by the pre-tax Net Asset Value (NAV) of its underlying investments.

In Forager's case, there's clearly an emotive reaction to Forager's excellent past performance and investors are bidding the price of the Forager Australian Share Fund up well above its underlying value.

This is happening because of two things:  there are a lot of satisfied existing investors — my wife included — who don't want to sell, and there are new investors wanting a piece of the action.

The result is that Forager's listed Australian Shares trust is now trading at $2.11 per unit, well above its most recent pre-tax NAV of $1.75.

That's a 20% premium!

Investors buying these units at well above its pre-tax NAV have been warned though.

Forager's Chief Investment Officer, Steve Johnson, has tempered expectations by advising to not extrapolate its recent history of 25%+ returns that it achieved over the last 12 months.

Which is why I think the current listed unit price is a little silly.

There are other listed investment funds [listed companies or LICs in this case] out there too with a similar problem, including the ones below:

Foolish takeaway

If you're going to invest in a listed investment company or trust, I think you'd be better off by buying at or less than its pre-tax NAV which will give you a margin of safety.

Paying too much can leave you exposed to a nasty capital loss, a) because of the fall in the underlying investment, and b) because of the possibility of unitholders in the respective listed investment funds bailing out.

Given the choppiness of share markets in the short-term, it wouldn't take much to see a material decline in the underlying value of funds under management.

But of course, you shouldn't just look for 'cheap'. You also need to look for a manager that has an investment strategy that aligns with your personal investment philosophy, and doesn't charge an exorbitant amount in fees.

Alternatively, you can further research company share ideas yourself.

As a starting point, I can't recommend strongly enough the 11 simple lessons that are contained in the report below which I believe will give you some useful insights into managing your own money.

The post Are these listed investment companies safe in a share market crash? appeared first on The Motley Fool Australia.

That's surprising for a company that makes its profits from investing in the market, and the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is virtually flat since January 2016, and the S&P 500 is up 2%.

Platinum isn't alone though – Magellan Financial Group Ltd (ASX: MFG) has seen its share price sink 10.7% year-to-date, Perpetual Ltd (ASX: PPT) has seen its share price sink 8.4% and IOOF Holdings Limited (ASX: IFL) has seen its share price sink 14% in the past five-six months.

Platinum Capital Limited (ASX: PMC) – the listed investment company managed by Platinum AM – has seen its share price fall 14.5% year-to-date. And while the fund has underperformed its benchmark index since January 2016, over the long term, it has returned close to double the MSCI All Country World Net Index.

Interestingly, Platinum's funds under management has declined since January but did rebound in May, compared to April – as the chart below shows.

However, Platinum's share price is virtually the same it was in early May.

One factor that may have contributed to Platinum's fall is the company's much higher exposure to Asian stocks and just 10% exposure to the US market. The company highlighted this differentiation in February this year. The market may have taken a dim view of this, with fears over growth in countries like China slowing – and the impact it would have on Platinum's performance.

However, that's to cast doubt on Platinum's historical performance and suggest that the manager can no longer outperform. That could be a major mistake, and at the current share price, Platinum looks compelling value.

Foolish takeaway

Trading on a P/E ratio of 15.2x and paying a fully franked dividend of 6%, now could be the perfect time to add this renowned fund manager to your portfolio.

The post Is Platinum Asset Management Limited a buy at this share price? appeared first on The Motley Fool Australia.

The following four suggestions are certainly far from an exhaustive list, however it's the fourth strategy which is a viable strategy for just about everyone.

1. You could try your luck at winning the lottery. If this is your plan, perhaps consider Powerball in the USA. In January 2016 this lottery had a jackpot of $1.6 billion, which was shared between three lucky winners!
2. Pick your parents! Executive Chairman James Packer of Crown Resorts Ltd (ASX: CWN) who is a regular rich list member received a handy head start thanks to the foundations laid by his parents and grandparents.
3. Study hard and become a surgeon or expensive lawyer.
4. Utilise the power of compounding. Obviously the first three suggestions are of limited strategic appeal given the role of chance, luck and ability required. In contrast, a stringent savings regime, a very good (but not impossibly good) average annual return on your investments and a long runway of time, makes it possible to compound your way to multi-millionaire status.

Consider the maths: $100,000 re-invested at 9% per annum will grow to $3.1 million in 40 years.

While 9% is a strong return, numerous investors around the world have proven it's possible to not only achieve this rate of return but to beat it.

Some of these top investors are even kind enough to invest on behalf of others!

WAM Capital Limited (ASX: WAM) has returned 17.9% per annum (pa) before expenses, fees and taxes since inception in August 1999.

Meanwhile, Platinum Capital Limited (ASX: PMC) has returned 12.2% pa after fees, but before taxes, since its inception in June 1994.

Foolish takeaway

It's almost inbuilt into the human psyche to want things yesterday and to dream of getting rich quickly.

When it comes to investing, trying to take shortcuts is bound to lead to mistakes and losses. While utilising the power of compounding won't turn you into a multi-millionaire overnight, your chance of success is far greater than winning the lotto!

The post Revealed! 4 simple ways to become a multi-millionaire appeared first on The Motley Fool Australia.