The Platinum Asset Management Ltd (ASX: PTM) share price is on fire today, rising 6.71% at the time of writing to $3.89 a share. Platinum shares closed at $3.66 yesterday afternoon before opening at $3.79 this morning and climbed as high as $3.94 today before settling at their current level. By comparison, the S&P/ASX 200 Index (ASX: XJO) is also up today, but only by 0.73% to 6,692.8 points.

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.

I'm a big fan of listed investment companies. It's an easy way to buy a diversified portfolio of shares in one basket.

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.

Interest rates are steadily increasing in the US. But in Australia interest rates have been dead flat for a couple of years now. This means the best place to generate income is by far the Aussie sharemarket.

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.

The Australian share market is one of the best places to invest if you're looking to create any meaningful sort of income.

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.

For those wanting to start investing in 2018, I've compiled a list of ten ASX-listed companies to begin researching:

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.

Australia's Big Four banks and general insurers are at the top of many income investors' lists and for good reason, paying fully-franked dividend yields over 5%. Those companies are already well known for their large, tax-effective distributions, so below I've highlighted four other stocks that I believe will reward income investors in 2018.

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.

Listed Investment Companies (LICs) are entities listed on the ASX which invest capital in a portfolio of assets, often in other listed companies. Increasing demand from retail investors for LICs has driven growth in the sector, and there are now many alternatives to choose from.

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.

My wife has been an investor in the Forager Funds Australian Fund now for a number of years and we're pleased to say we're happy with the performance of this investment.

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.

Platinum Asset Management Limited (ASX: PTM) has seen its share price sink 5.3% today, and has lost a quarter of its value since the start of this year.

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.

While there is an almost never-ending list of ways that you could become rich, not all of them are practical wealth enhancing strategies.

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.

Here it is, the full wrap up for the second week of reporting season February 2016.

If you missed the week one reporting season wrap up, check it out here.

Winners

BWP Trust (ASX: BWP) – Half year distributable profit up 8.5% to $53.3 million compared to pcp.

Cochlear Limited (ASX: COH) – Half year net profit attributable to members up 32% to $94 million compared to pcp.

Transurban Group (ASX: TCL) – Half year net profit excluding significant items up 19.2% to $62 million compared to pcp.

Virgin Australia Holdings Ltd (ASX: VAH) – Half year net profit attributable to owners up 186% to $45.7 million compared to pcp.

Mirvac Group (ASX: MGR) – Half year net profit attributable to the stapled securityholders up 69% to $472.7 million compared to pcp.

Idp Education Ltd (ASX: IEL) – Half year net profit attributable to the owners up 19.4% to $20.3 million compared to pcp.

Goodman Group (ASX: GMG) – Half year net profit attributable to securityholders up 79% to $919.3 million from $512.7 million compared to pcp.

ASX Ltd (ASX: ASX) – Half year net profit from ordinary activities (including significant items) up 7.3% to $213.1 million compared to pcp.

SKYCITY Entertainment Group Limited-Ord (ASX: SKC) – Half year net profit attributable to security holders up 30.2% to NZ$71 million compared to pcp.

OZ Minerals Limited (ASX: OZL) – Full year net profit attributable to equity holders up 168.5% to $130.2 million from $48.5 million compared to pcp.

Computershare Limited (ASX: CPU) – Half year net profit attributable to members up 443.7% to $84.26 million compared to pcp.

Stockland Corporation Ltd (ASX: SGP) – Half year net profit attributable to securityholders up 50.6% to $696 million compared to pcp.

Commonwealth Bank of Australia – (ASX: CBA) – Half year net profit attributable to equity holders up 2% to $4.6 Billion compared to pcp.

Boral Limited (ASX: BLD) – Half year net profit attributable to members up 30.7% to $136.6 million from $104.5 million compared to pcp.

Carsales.Com Ltd (ASX: CAR) – Half year net profit attributable to members up 10% to $51.3 million compared to pcp.

JB Hi-Fi Limited (ASX: JBH) – Half year net profit attributable to members up 7.52% to $95.2 million compared to pcp.

National Storage REIT (ASX: NSR) – Half year net profit attributable to members up 35% to $20.6 million compared to pcp.

Avjennings Ltd (ASX: AVJ) – Half year net profit attributable to members up 39.2% to $16.5 million from $11.9 million compared to pcp.

Nick Scali Limited (ASX: NCK) – Half year net profit attributable to owners of Nick Scali Limited up 40.7% to $14.1 million compared to pcp.

Losers

Suncorp Group Ltd (ASX: SUN) – Half year net profit attributable to owners down 16% to $530 million compared to pcp.

Ansell Limited (ASX: ANN) – Half year net profit attributable to members down 20.6% to $69.6 million compared to pcp.

Shopping Cntrs Austrls Prprty Gp Re Ltd (ASX: SCP) – Half year net profit attributable to members down 7.5% compared to pcp.

Cimic Group Ltd (ASX: CIM) – Full year net profit attributable to members down 23% to $520.4 million from $676.5 million compared to pcp.

AGL Energy Ltd (ASX: AGL) – Half year net profit attributable to shareholders down 245.8% to $449 million from $308 million compared to pcp.

Platinum Capital Limited (ASX: PMC) – Half year net profit attributable to members down 120.39% to $3.79 million compared to pcp.

Aquarius Platinum Limited (ASX: AQP) – Half year net profit attributable to equity holders down 35% to $76.1 million compared to pcp.

The post February 2016 Reporting Season – Week 2 Wrap Up appeared first on The Motley Fool Australia.

With volatility on the rise one area of the market that should be doing better is hedge funds.

A hedge fund gets its name from the use of hedging strategies which are aimed at reducing volatility within the portfolio and lowering downside risks.

While many hedge funds (rightly) get a "bad" wrap, one of the most successful funds management companies in Australia, Platinum Asset Management Limited (ASX: PTM), in fact operates a hedge fund strategy.

One of the easiest ways investors can benefit from the skills of Platinum is via its listed investment company (LIC) Platinum Capital Limited (ASX: PMC), which recently reported its interim results for the six months ending December 31.

While the headwinds buffeting global markets made for a tough half year for the LIC, the portfolio maintains a reasonable long-term track record against its benchmark the MSCI, particularly when considerations of Platinum Capital's lower net exposure and hence lower risk compared to the market are taken into account.

Over the past five years the company's pre-tax net asset value has achieved an 11.7% compound annual return which is a reasonable absolute return.

Importantly, the company also pays fully franked dividends.

Although the just declared interim dividend has been reduced to three cents per share (cps) from five cps in the prior corresponding period, the stock appears to remain appealing for income-seeking investors.

With a significant franking account balance, assuming Platinum Capital pays out a final dividend of five cps (which would represent a reduction of one cps on the prior corresponding final dividend) then shareholders who own the stock prior to the ex-dividend date of February 12 could be looking at a fully franked dividend yield of 4.9% based on a share price of $1.64 over the coming 12 months.

The post How to benefit from a top fund manager and get a 4.9% fully franked dividend yield appeared first on The Motley Fool Australia.

Here we are, second week of reporting season and we've had some big winners and losers so far.

Week one's winners included Navitas Limited (ASX: NVT), Capilano Honey Limited (ASX: CZZ) and REA Group Limited (ASX: REA). While week one's losers included Magellan Flagship Fund Limited (ASX: MFF), Genworth Mortgage Insurance Australia Limited (ASX: GMA) and Tabcorp Holdings Limited (ASX: TAH).

If you missed the week one reporting season wrap up, check it out here.

Now, here's the week two reporting season winners and losers to date:

Winners

OZ Minerals Limited (ASX: OZL) – Full year net profit attributable to equity holders up 168.5% to $130.2 million from $48.5 million compared to pcp.

Stockland Corporation Ltd (ASX: SGP) – Half year net profit attributable to security holders up 50.6% to $696 million compared to pcp.

Commonwealth Bank of Australia – (ASX: CBA) – Half year net profit attributable to equity holders up 2% to $4.6 billion compared to pcp.

Boral Limited (ASX: BLD) – Half year net profit attributable to members up 30.7% to $136.6 million from $104.5 million compared to pcp.

Carsales.Com Ltd (ASX: CAR) – Half year net profit attributable to members up 10% to $51.3 million compared to pcp.

JB Hi-Fi Limited (ASX: JBH) – Half year net profit attributable to members up 7.52% to $95.2 million compared to pcp.

National Storage REIT (ASX: NSR) – Half year net profit attributable to members up 35% to $20.6 million compared to pcp.

Avjennings Ltd (ASX: AVJ) – Half year net profit attributable to members up 39.2% to $16.5 million from $11.9 million compared to pcp.

Nick Scali Limited (ASX: NCK) – Half year net profit attributable to owners up 40.7% to $14.1 million compared to pcp.

Losers

Ansell Limited (ASX: ANN) – Half year net profit attributable to members down 20.6% to $69.6 million compared to pcp.

Shopping Cntrs Austrls Prprty Gp Re Ltd (ASX: SCP) – Half year net profit attributable to members down 7.5% to $90.8 million from $98.2 million compared to pcp.

Cimic Group Ltd (ASX: CIM) – Full year net profit attributable to members down 23% to $520.4 million from $676.5 million compared to pcp.

AGL Energy Ltd (ASX: AGL) – Half year net profit attributable to shareholders down 245.8% to $449 million from $308 million compared to pcp.

Platinum Capital Limited (ASX: PMC) – Half year net profit attributable to members down 120.39% to $3.79 million compared to pcp.

Aquarius Platinum Limited (ASX: AQP) – Half year net profit attributable to equity holders down 35% to $76.1 million compared to pcp.

The post Winners and losers from the February 2016 reporting season so far appeared first on The Motley Fool Australia.

Listed investment company (LIC) Platinum Capital Limited (ASX: PMC) has released its results for the financial year (FY) ending 30 June 2015.

Platinum Capital is managed by leading fund manager Platinum Asset Management Limited (ASX: PTM) and has outperformed its benchmark since inception although it underperformed a strong benchmark in the past 12 months.

Over the past year the pre-tax net asset value (NAV) of the company increased by 17.6% versus a 23.7% gain in the MSCI World Index. Since inception however, Platinum Capital has returned 13.1% versus 6.6%.

The gains take the NAV to $1.70 per share which means the stock is trading at quite a significant premium, when you consider the share price is currently $1.95.

Pleasingly for shareholders the total dividends paid for the year have increased from 8 cents per share (cps) in the prior year to 11 cps in FY 2015 putting the stock on a fully franked dividend yield of 5.6%.

 A clever way to gain international exposure to equities

For most investors it is hard enough to outperform the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), so the challenge of successfully outperforming global markets is rightly off-putting. Having a diversified portfolio with exposure to global stocks is a prudent strategy for many portfolios however.

One simple and clever way to achieve this is via LICs that invest in global equities.

Thankfully the depth of offerings in this space is growing. Alongside Platinum Capital is the soon to be listed Platinum Asia Investment Limited, which will offer investors a specific Asia-focused LIC.

Highly regarded fund manager Geoff Wilson is also putting the finishing touches on a global version of the Future Generation Investment Company Ltd (ASX: FGX) which not only provides shareholders with a low cost entry into a portfolio managed by a selection of top tier fund managers, but the LIC also directs 1% of net assets each year to charities in lieu of management fees.

The post Platinum Capital Limited outperforms its benchmark: what you need to know appeared first on The Motley Fool Australia.

We've often suggested listed investment companies (LICs) as a suitable vehicle to gain instant diversification for an Australian investor's portfolio, including here. They also have plenty of advantages over managed funds.

What many investors don't realise is that there are more LICs on the ASX than just Argo Investments Limited (ASX: ARG) and Australian Foundation Investment Co.Ltd (ASX: AFI) – the two largest LICs. According to the ASX, there are currently 65 LICs and Listed investment trusts (LITs).

The great thing for investors is that many of the LICs offer variety in the types of stocks they focus on, their investing strategies vary and in some cases, LICs can take both short and long positions, allowing them to benefit from downward moves as well as normal capital gains.

One example I own shares in is Contango Microcap Ltd (ASX: CTN). Currently sporting a fully-franked dividend yield of more than 8% and investing in smaller stocks with market caps of between $10 million and $350 million on the ASX gives me instant diversification with one security. Since inception in 2004, Contango has produced annualised returns of 16.4% before fees and taxes – well above the All Ordinaries Accumulation Index return of 9.4% (both include dividends).

Here's a closer look at 5 other LICs which are included in the S&P/ASX 200 (Indexasx: XJO) (ASX: XJO).

Milton Corporation Limited (ASX: MLT)

With a market cap of $2.9 billion, Milton is the third-largest listed LIC on the ASX behind AFIC ($6.7bn) and Argo ($5.3bn). All three sport ultra-low management fees of between 0.12% and 0.18% according to the ASX website. Milton is one of my favoured LICs, thanks to its low cost (0.12% in the year to June 2015), excellent management, a dividend every year since 1958, and returns of more than 10% annually over the past 10 years, beating the 7.8% from the index (both including dividends).

One thing to watch, as with all LICs, is the price compared to the last reported net tangible assets (NTA) per share. Milton had $4.39 in NTA per share at the end of June, below the current share price of $4.56, so investors might want to wait for a better entry price.

Djerriwarrh Investments Limited (ASX: DJW)

Djerriwarrh is one of those special LICs that 'soup's up its performance by selling options over part of its investment and trading portfolio, allowing the company to continue paying high dividend yields. Currently paying a 5.5% fully franked dividend yield, which grosses up to 7.9%, Djerriwarrh has paid a dividend yield of more than 5% over the past decade, but performance has suffered, with the LIC portfolio underperforming the S&P/ASX 200 Accumulation index. Another issue is that Djerriwarrh's shares consistently trade at a premium to its assets. Add in a management fee of more than double the top three (0.39%), and it's one LIC I'd be avoiding for now.

Diversified United Investment Limited (ASX: DUI) ('DUIL')

Diversified United Investment was founded in 1991 and has paid a dividend every year since listing in 1992/1993. The company currently pays a 4% fully franked dividend yield (grosses up to 5.7%) and its latest NTA per share at the end of June 2015 was $3.68. The current share price is $3.50 so is trading at a discount, although falls in July may have removed some of the discount. DUIL has very low operating costs – 0.07% in the latest half year. Interestingly, DUIL also invests in international exchange traded funds (ETFs), giving investors some exposure offshore – important when the Australian dollar has just dropped to its lowest level in six years. DUIL has outperformed the S&P/ASX 300 Accumulation index over the past 10 years, and its one LIC I'd be adding to the watchlist.

Mirrabooka Investments (ASX: MIR)

Like Djerriwarrh, Mirrabooka shares are trading at a massive premium to their underlying net tangible asset (NTA) backing per share. The current price is $2.65 compared to reported NTA of $2.29 at June 30, 2015, so this is no bargain. The good news is that the company has outperformed the S&P/ASX Mid cap 50 and Small Ordinaries Accumulation Indices over the medium to long-term (both including dividends reinvested).

One thing to also research when considering an LIC is to see which companies they invest in. Mirrabooka doesn't follow the usual path of following a major index and instead invests in a wide variety of medium-sized stocks. Its largest holding at the end of June 2015 was Qube Holdings Ltd (ASX: QUB).

Platinum Capital Limited (ASX: PMC)

Like many other LICs, Platinum trades at a substantial premium to its underlying assets. The main reason for that is its popularity – given the LIC has thrashed its index since inception in 1994. Platinum's fund has returned 13.3% per annum against the MSCI World Net Index of 6.8%. Platinum Capital invests around the world, with 39% of assets allocated to Asia, 23% to North America and the same to European companies. The LIC can also take short positions to juice up returns in falling markets.

It also helps that renowned fund manager Kerr Neilson is the driving force behind Platinum's performance, but the price for investors is a 1.5% management fee. All those factors need to be considered before building a stake in Platinum Capital.

Foolish takeaway

This review covers just 5 of the 65 listed investment companies on the ASX. For those looking for a quick and easy way to get into the market and instant diversification, LICs, including the ones mentioned above could be your best bet.

The post Beat the market with these 5 'lazy investor' stocks appeared first on The Motley Fool Australia.

If the general consensus of an industry is that it's terrible, miserable and should not be touched, then it's time to go hunting.

You're probably not going to find many shining and fresh stocks. It will actually be like the bargain bin of bruised fruit and dented cans at the supermarket. Everything is marked down 10%, 20%, 30%.

Financial services company Credit Suisse analysts have recently said that some retail stocks are buying opportunities now.

Weaker consumer sentiment, a harsh Federal budget and unseasonably warm weather have thrown retailers off-kilter and sent their stocks spinning down. Low interest rates should be pushing customers to the stores, but this EOFY season may see heavier discounts and lower margins. Specifically, Credit Suisse singled out three companies as buying opportunities.

1)   Premier Investments Limited (ASX: PMV)

The clothing retailer has strong brand names like Just Jeans, Portmans, Jay Jays, as well as the highly successful Smiggle stationery shop that is now expanding into the UK. The stock fell from about $10 down to $8 and has slightly rebounded to around $8.50. That "mark down" has made its dividend yield 4.6% fully franked.  Earnings are forecast to go up, so lock in the cheaper price and higher yield now.

2)   OrotonGroup Limited (ASX: ORL)

The handbag and accessory specialty retailer also deals in strong brands such as Brooks Brothers and Gap. Business is expected to rebound within several years with a good number of new branded stores created here and in Asia.  The $163 million company could even be a possible takeover target if it turns around well.  The dividend yield is a huge 8.0% fully franked. The stock fell from about $7 to $4 over the past year.

3)   Specialty Fashion Group Ltd (ASX: SFH)

The operator of clothing brands such as Millers, Katie's and Crossroads has been relatively subdued in share price over the past year, around 80 cents to $1. It's at $0.88 now and offers a nice 4.6% yield fully franked. Management is strong and experienced. It recently acquired the distressed Rivers brand and all of its stores for a very low price, so that could be a turnaround story to boost the company.

The post 3 beaten-down stocks Credit Suisse says are buying opportunities appeared first on The Motley Fool Australia.

Here are four stocks which have just touched new 52-week highs and also have the potential to trade higher.

1) Collins Foods Ltd (ASX: CKF) operates 122 KFC outlets in Queensland and 27 Sizzler restaurants around Australia. The stock has gained nearly 13% so far in January and given it trades at a discount to many of its peers it could be set to trade even higher.

2) CSL Limited (ASX: CSL) has been a market darling for many years thanks to its solid revenue and profit growth. Despite guidance for profit growth being somewhat subdued given the high multiple the stock trades on, CSL is still expected to post a double-digit gain in earnings. The market appears comfortable with the company's long-term growth outlook with the stock price continuing to climb higher, albeit at a more restrained pace.

3) iProperty Group Ltd (ASX: IPP) has been a terrific investment for shareholders in the past 12 months, with the stock rising from 90 cents to $2.25. Shareholders are hoping that IPP can have similar success to REA Group Limited (ASX: REA) but in the markets of Malaysia, Singapore and Hong Kong. If IPP can ultimately replicate REA then its share price is likely to steam far higher.

4) Platinum Capital Limited (ASX: PMC) is the listed investment company managed by Platinum Asset Management Limited (ASX: PTM). The pre-tax performance of the portfolio for the 2013 calendar year was 50.12%, which has no doubt provided the impetus for the share price to rally to a multi-year high.

Foolish takeaway

Value investors often prefer to focus their attention on beaten down stocks – and with good reason. However it's important not to be blind to the opportunities which are apparent when successful companies are recognised by the market sending them to new highs.

The post Collins Foods Ltd, CSL Limited, iProperty Group Ltd, Platinum Capital: Can these stocks go higher? appeared first on The Motley Fool Australia.