Question: I am heavily weighted in the Australian market ($1.5 million), and feel I should be in some global stocks as well but don’t know much about it. So my thought was to place $200,000 in each of Magellan Global Equities Fund, Platinum International Fund, and maybe Platinum Healthcare fund, because I have $600,000 spare from the sale of a property.
Any thoughts you have for me to chew over, or can you steer me in a direction to do more research?
Answer (by Paul Rickard): I think your plan is a good starting point.
I think you want some manager diversification, so selecting both Magellan and Platinum is a good idea. Other managers you could look at include K2, PM Capital and Aberdeen.
While I am very supportive of the tailwinds for the health sector, having at least 33% of your exposure in this sector is a very material weighting. Is this what you want?
Question: Is it worth going in to the STO (Santos) capital raising? I have a few weeks to decide. There seems to be those who say ”go for it”, while other commentators are not so sure. We can get up to $15,000 but I already have a book loss on the ones I currently own. Your thoughts?
Answer (By Paul Rickard) Santos is quite leveraged to the oil price, so participating in the offer is really a play on the direction of oil prices.
The SPP is no bargain – either the lesser of $4.06 or 2% below the weighted average trading price on the ASX in the week of 24 Jan to 31 Jan. Current price is around $4.12.
It is due to close on the 31sr of January.
As far as the brokers are concerned, sentiment on Santos is positive, target price is $4.76.
I am indifferent. I probably lean to passing on this offer.
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