Pacific is one of the ASX shares that could be worth looking at this weekend.
The post 2 ASX shares that might be worth looking at this weekend appeared first on The Motley Fool Australia. –
There are a number of ASX shares that might be worth looking at this weekend.
Businesses that have growth potential and are at good value could certainly be ideas.
Sometimes those ideas can be found outside of the S&P/ASX 200 Index (ASX: XJO).
Here are two that could be worth thinking about:
Pacific Current Group Ltd (ASX: PAC)
Pacific describes itself as a multi-boutique asset management company that applies its strategic resources, including capital, institutional distribution capabilities and operational expertise to help its partners excel. It currently has investments in 15 boutique asset managers around the world.
Some of the investment managers it has stakes in includes GQG, ROC, Victory Park, Proterra and Astarte.
Every quarter it releases its progress with its funds under management (FUM). For the three months to 30 June 2021, Pacific saw its FUM increase by 15.4% to $142.3 billion.
Higher FUM for the ASX share’s investment managers can translate into higher management fees, which can turn into higher revenue and profit for Pacific. However, each relationship between Pacific and the boutique can vary depending on different economic factors, so 15% FUM growth doesn’t necessarily translate into 15% revenue growth.
The broker Ord Minnett currently rates Pacific as a buy with a price target of $6.70. That suggests the Pacific share price could rise by almost 20% over the next 12 months if the broker is right.
Ord Minnett believes that the ASX share could pay an annual dividend of $0.37 per share in FY22. That translates to a grossed-up dividend yield of 9.3% at the current share price.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
This is an exchange-traded fund (ETF) that has a portfolio of shares that are decided by Morningstar analysts.
Those analysts are looking for businesses that are currently priced attractively compared to the estimate of fair value.
However, the ETF doesn’t invest in any company. It only goes for businesses that have wide economic moats. In other words, businesses that have strong competitive advantages that are expected to endure for a number of years.
Some of the 48 holdings currently in the portfolio include: ServiceNow, Alphabet, Microsoft, Tyler Technologies, Facebook, Pfizer, Amazon, Cheniere Energy, Medtronic, Wells Fargo, Salesforce, Guidewire Software, Philip Morris and General Dynamics.
These businesses are allocated across a number of different industries. The ones with a double digit weighting include: health care, information technology, industrials, financials and consumer staples.
The ASX share has an annual management fee of 0.49%.
Past performance is not a guarantee of future results, as VanEck says. But, over the last five years it has returned an average of 19.2% per annum, outperforming the S&P 500’s return of 16.8% per annum. Indeed, it has outperformed the S&P 500 over the last six months, year, three years, five years and since the ETF’s inception.
The post 2 ASX shares that might be worth looking at this weekend appeared first on The Motley Fool Australia.
Should you invest $1,000 in Pacific right now?
Before you consider Pacific, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pacific wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
Motley Fool contributor Tristan Harrison owns shares of PACCURRENT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.