Question: Does Platinum Asset Management (ASX Code: PTM) include international shares in its portfolio? I’d like to invest in an ASX company that invests in international shares if possible, as I have no weight in these.
Answer: Platinum Asset Management is a fund manager – not a unit fund investing offshore. It is exposed to fund flows (investors adding funds or redeeming units), and its skill as an investment manager (funds flow, plus performance fees). Although it benefits when international markets do well, its exposure to offshore markets is relatively minor.
Platinum has unit funds that you can invest in, or a listed investment company, Platinum Capital Ltd (ASX Code: PMC).
You might also like to consider Magellan Global Equities (ASX Code: MGE), and/or the new Contango Global Growth Limited (a listed investment company that will IPO in June – offers open next week). I will be writing about the latter in the Switzer Super Report next Monday.
Question: Do you hold an opinion on SGR as a growth/income share at around its current price?
Answer: The Star Group (SGR) wouldn’t be in my list of great growth stocks, mainly because there is a dependence on VIP turnover and in the medium term, the risk of competition from Crown’s new casino at Barangaroo.
That said, this seems to be reflected in the price. All the major broker analysts are positive on the stock, with 8 buys and 0 sells. Target price is $6.10 compared with current price of $5.44.
The brokers’ forecast EPS to grow from 23.6c in FY16 to 27.0c in FY17 and to 30.4c in FY18 – and on this basis, it looks like a growth stock.
Income? No, Forecast dividend yield of 2.7% in FY17 rising to 2.9% in FY18.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.