When it comes to my personal share portfolio, I like to invest in a mix of individual ASX shares, international shares, and managed investments. That way, I can choose the companies that I want in my portfolio, while outsourcing some of the work to professional investors.
If my own share picks prove to be failures, at least I have some other investments, and expertise, to rely on.
Some of these managed investments are index funds. But others are actively managed.
One of the net shares I intend to buy falls into the latter camp.
When I look for actively managed investments, I like to analyse a number of factors. These include long-term investment performance, fees, and dividend potential.
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The next ASX share I'm going to buy
The Plato Income Maximiser Ltd (ASX: PL8) hits all three, in my view.
The Plato Income Maximiser Fund is a listed investment company (LIC) that targets dividend income. Like all LICs, this company invests in a portfolio of shares on behalf of its shareholders.
Some of its most recent top holdings include dividend payers like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and QBE Insurance Group Ltd (ASX: QBE).
So let's go through my three criteria.
Firstly, investment performance. The Plato Income Maximiser Fund has delivered a total return (including dividends and franking credits) of 9.2% per annum since its inception in 2017, net of fees. That's well above the 7.6% per annum return of its ASX 200 benchmark. It's also beaten the ASX 200 over the past one and three years:
In terms of dividends, this LIC pays out monthly, fully-franked dividend payments, which I find attractive. This lets me put my money to work sooner than a six-month payer. At the current share price, the Plato Income Maximiser Fund has a trailing dividend yield of 5.33%, which I think is very attractive.
Finally, let's talk fees. The Plato Income Maximiser Fund charges an annual management fee of 0.8%. While that's not as competitive as an index fund, I still think it's worth paying for considering the outperformance this LIC has generated against the ASX 200.
So overall, I think the Plato Income Maximiser would make a great addition to my ASX share portfolio, and that's why it will probably be the next ASX share that I buy.
