One of Australia’s leading funds, Australian Foundation Investment Co Ltd (ASX: AFI) (AFIC), recently made some S&P/ASX 200 Index (ASX: XJO) share investments in its portfolio.

AFIC is the largest and one of the oldest listed investment companies (LICs), meaning it invests in other shares on behalf of shareholders.

The LIC structure is beneficial because it provides permanent capital for long-term investment. LICs can also provide investors with a good source of dividends. AFIC recently announced it would move to pay quarterly dividends, giving investors more regular cash flow.

What are the types of investments that AFIC targets?

It has outlined that it focuses on quality companies and it has built a well-diversified portfolio with the right mix of income and growth. By making those investments, Aussies can benefit from compounding over the long-term.

There were six ASX 200 shares amid three growth trends that AFIC decided to invest in.

Rising dividends per share

Two of the ASX 200 shares that AFIC recently invested in were ASX blue-chips: Woolworths Group Ltd (ASX: WOW) and Telstra Group Ltd (ASX: TLS).

Both of these companies have achieved a turnaround from a growth halt in recent history.

AFIC highlighted that the supermarket business is delivering dividend growth amid rising profits.

In FY26, Woolworths grew its annual dividend by 15% to 97 cents per share. AFIC highlighted that analysts estimate the annual dividend is projected to increase by another 10% in FY27.

For Telstra, the ASX telco share hiked its annual dividend per share by 10.5% to 21 cents per share. Analyst forecasts suggest the company could hike its dividend again in FY27 by another 4.75% to 22 cents per share.

Growing earnings per share

Some of the best ASX 200 shares have delivered earnings growth for many years in a row, and they can continue to deliver impressive profit growth. Earnings projections suggest profit could compound.

Pro Medicus provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide. Earnings per share (EPS) rose 26.4% in FY26, and it’s predicted to increase another 30.9% in FY27, according to AFIC.

Meanwhile, TechnologyOne Ltd (ASX: TNE) is a provider of enterprise resource planning (ERP) software for businesses, local councils, governments, universities and so on. It’s benefiting from rising demand for digitalisation and efficiencies.

The TechnologyOne EPS rose by 16.7% to 42 cents in FY25, and EPS is forecast to increase 19% to 50 cents, according to AFIC.

Compelling gold outlook

The final duo of ASX 200 shares that AFIC revealed it had bought were ASX gold shares.

They are two of the ASX’s largest players and there are various tailwinds for the sector such as inflation, investors seeking safety away from the uncertainty of government bonds (and currency).

A higher gold price over the last few years has led to significant improvements in operating cash flow.

For Newmont Corporation CDI (ASX: NEM), operating cash flow grew 60% to US$10.3 billion in FY25 and is projected to rise another 28% to US$13.2 billion in FY26, according to AFIC.

With Evolution Mining Ltd (ASX: EVN), operating cash flow grew 30% in FY26 to A$2.6 billion, it’s forecast to rise another 3.8% in FY27.

Of course, these aren’t the only ASX shares that could be compelling long-term buys.

The post A leading fund just bought these top ASX 200 shares appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Tristan Harrison has positions in Technology One. 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

MFF Capital Investments vs PM Capital Global Opportunities Fund shares

If you’re weighing up MFF Capital Investments (ASX: MFF) and PM Capital Global Opportunities Fund (ASX: PGF), you’re looking at two of the most prominent ASX-listed listed investment companies (LICs) specialising in international equities. These vehicles let Aussies invest globally without having to do all the heavy lifting themselves. But which is the better buy right now? Let’s size up what makes each stand out — and dive into the current numbers.

The case for MFF Capital Investments

MFF Capital Investments is a well-established LIC focused on providing investors with exposure to a diversified portfolio of international listed securities. MFF has traditionally been known for its disciplined, long-term approach to global blue-chip investing, often with a tilt to quality growth companies around the world.

Looking at the numbers, MFF currently sports a market cap of $3.17 billion, making it the larger of these two funds. Its reported dividend yield is 4.01%, which is fully franked — a nice draw for income-seeking investors. The dividend records show a consistent upward track, with the most recent interim and final payouts at $0.10 and $0.09 per share (both 100% franked) in 2026. That means plenty of tax-effective income is going back to shareholders.

What stands out is MFF’s strong franking credits, plus its reliability: over the past decade, dividends have risen steadily (with a one-off special dividend in 2020). However, 2026 has been negative for performance so far, with a year-to-date return of -5.09%.

The case for PM Capital Global Opportunities Fund

PM Capital Global Opportunities Fund is another major international LIC. PM Capital aims to build investor wealth by investing in a portfolio of global listed securities. The company is managed by PM Capital and has a track record dating back to 2013. PM Capital’s investment approach is long-term and focused on identifying opportunities abroad, from quality stalwarts to special situations.

PGF’s current market cap comes in at $1.95 billion, making it smaller than MFF, but still substantial in the LIC world. The headline yield is a little higher at 4.64%, with 100% franking as well. The most recent dividend was a $0.075 per share final (ex-date in September 2026), also fully franked. Like MFF, PGF has lifted its dividends regularly over the years, with a fairly steady growth curve since 2016.

What really leaps out, though, is performance: year-to-date, PGF is in the green at 3.92%, a sharp contrast to MFF’s negative result.

Valuation comparison

Here’s a side-by-side look at the most meaningful financial metrics available right now:

Metric	MFF Capital Investments	Pm Capital Global Opportunities Fund
Market Cap	$3.17 billion	$1.95 billion
Dividend Yield	4.01% (100% franked)	4.64% (100% franked)
Year To Date Return	-5.1%	3.9%

Recent share price momentum

Comparing share price performance up to is 30 September 2026:

• As of 30 September 2026, Mff Capital Investments closed at $5.48 (having climbed 1.86% on the day).
• As of the same date, Pm Capital Global Opportunities Fund closed at $3.20 (down 0.93% for the day).
• Year to date, MFF shares are down 5.1%, while PGF shares are up 3.9%.

So PGF has clearly enjoyed more positive momentum in 2026 so far. Of course, LICs can trade at a premium or discount to their portfolio’s value, but that data wasn’t supplied here.

Which is the better buy?

With both funds offering global diversification, strong franking, and a rising dividend record, it really comes down to performance and yield, based on these numbers.

I’d lean toward PM Capital Global Opportunities Fund as the better buy in this matchup. Here’s why: PM Capital is offering a higher dividend yield (4.64% vs 4.01%), fully franked, and has managed a positive year-to-date return (+3.9%) while MFF has lost ground (-5.1%). Both have a robust history of dividend increases, but PM Capital’s shares are simply showing stronger recent momentum.

MFF’s larger market cap points to more scale, but for income and growth, the data slightly favours PM Capital right now. I haven’t considered underlying valuation (like P/E or discount to NTA) for this exercise, but based on performance and yield, my pick would be PM Capital Global Opportunities Fund at these levels.

The post MFF Capital vs PM Capital Global Opportunities: Which LIC is the better investment today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. 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 positions in and has recommended Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Once a week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

That’s because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• DroneShield Ltd (ASX: DRO) has returned to the top of the table with short interest of 15.2%, up from 14.3% last week. The counter-drone technology company remains a major target for short sellers, possibly due to the uncertainty created by the ongoing ASIC investigation.
• Lotus Resources Ltd (ASX: LOT) has seen its short interest fall sharply to 13.3%. Short sellers may have concerns over the uranium producer’s production ramp-up at Kayelekera and how quickly it can reach its longer-term targets.
• Boss Energy Ltd (ASX: BOE) has seen its short interest rise to 13.2%. Despite achieving its revised FY 2026 production guidance, short sellers may be questioning the longer-term production outlook at Honeymoon.
• IperionX Ltd (ASX: IPX) has short interest of 12.8%, which is up again week on week. Short sellers seem to believe plenty of future growth is already priced in as the titanium company works to scale up its US operations.
• Zip Co Ltd (ASX: ZIP) has seen its short interest jump to 12.7%. Short sellers may believe higher interest rates could put pressure on the buy now pay later company’s business model by increasing funding costs and weighing on consumer spending.
• PLS Group Ltd (ASX: PLS) has 12.3% of its shares held short, up from 11.7% last week. Short sellers may be betting that the recent improvement in lithium market conditions will not last.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest ease slightly to 11.9%. The medical technology company continues to make commercial progress, but its high valuation relative to current revenue makes it an obvious target for short sellers.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.8%, which is broadly unchanged week on week. Short sellers may still be waiting for stronger evidence that the pizza chain operator’s turnaround can deliver a meaningful earnings recovery before closing positions.
• Paladin Energy Ltd (ASX: PDN) has returned to the top ten with short interest of 11%. This is a third uranium stock that short sellers are loading up on.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise slightly to 10.9%. Short sellers may remain cautious on the Penfolds owner due to weak luxury wine demand and the work still required to improve its Americas business.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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• Droneshield vs Zip Co: Which tech share is the better ASX growth pick?
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• Here are the top 10 ASX 200 shares today
• PLS Group vs Mineral Resources: ASX mining shares compared

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.