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Own AFIC (ASX:AFI) shares? Then you also own these US tech stocks

AFIC has found a new playground to play in…
The post Own AFIC (ASX:AFI) shares? Then you also own these US tech stocks appeared first on The Motley Fool Australia. –

The Australian Foundation Investment Co Ltd (ASX: AFI) has long held a reputation for being a Listed Investment Company (LIC) that primarily invests in blue chip ASX shares. That’s what you get when you’ve been around since 1928 and don’t change your investing playbook too often.

But it seems as though even an old ship can still change course.

Don’t worry, there’s nothing too radical here. AFIC’s largest positions remain in ASX 200 blue chip shares, according to its latest data. Its top shares still include stalwarts like Commonwealth Bank of Australia (ASX: CBA)BHP Group Ltd (ASX: BHP) and CSL Limited (ASX: CSL).

However, there have been rumours swirling around that AFIC has been looking beyond our shores for its investment horizon. These largely stem from AFIC’s annual general meeting last year.

Well, we just got some proof that the rumours were not entirely unfounded. AFIC has just released its annual report for the 2021 financial year and it contained some very interesting tidbits. AFIC actually announced that it has been investing beyond the ASX in a meaningful way. Here’s what it said:

A small part of our funds, $48 million (which represents approximately 0.5 per cent of the portfolio) was invested into a diversified global equities portfolio during the latter half of the financial year. 

Not only that, but AFIC also disclosed these international shares. And it turns out there are quite a lot of them: 39 in fact.

AFIC takes the plunge on US tech stocks

These companies are mostly US shares, but there are some British, German Fench, Swiss and Chinese companies too. We won’t go through all of them, but here are some of the more prominent names:

Apple Inc (NASDAQ: AAPL)

Alphabet Inc Class A (NASDAQ: GOOGL)

Facebook Inc (NASDAQ: FB)

Amazon.com Inc (NASDAQ: AMZN)

Mastercard Inc (NYSE: MA)

McDonald’s Corp (NYSE: MCD)

Microsoft Corporation (NASDAQ: MSFT)

PayPal Holdings Inc (NASDAQ: PYPL)

Netflix Inc (NASDAQ: NFLX)

Starbucks Corporation (NASDAQ: SBUX)

Visa Inc (NYSE: V)

PepsiCo Inc (NASDAQ: PEP)

Alibaba Group Holding Ltd (HKG: 9988)

Unilever plc (LSE: ULVR)

Nestle SA (SWZ: NESN)

So it’s pretty evident that AFIC is very happy to add some big US blue chip companies to its portfolio, including all of the FAANG stocks, as well as Microsoft. Its exposure to the European consumer staples giants in Nestle and Unilever is also notable, as is its investment in the Chinese e-commerce giant Alibaba.

And although AFIC admits these positions amount to a relatively small proportion of its overall investments, we can probably expect the company to continue to beef up its international portfolio going forward.

At the current AFIC share price of $8.41, this LIC has a market capitalisation of $10.3 billion, and a dividend yield of 2.84%.

The post Own AFIC (ASX:AFI) shares? Then you also own these US tech stocks appeared first on The Motley Fool Australia.

Should you invest $1,000 in AFIC right now?

Before you consider AFIC, 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 AFIC 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 August 16th 2021

More reading

Why is the AFIC (ASX:AFI) share price making news again?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Alphabet (A shares), Facebook, Mastercard, McDonalds, PepsiCo, Starbucks, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CSL Ltd., Facebook, Mastercard, Microsoft, Netflix, PayPal Holdings, Starbucks, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Unilever and has recommended the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short March 2023 $130 calls on Apple, and short October 2021 $120 calls on Starbucks. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Mastercard, Netflix, PayPal Holdings, and Starbucks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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