As I’ve mentioned here previously, I like to keep an eye on substantial shareholder notices.

This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

Corporate Travel Management Ltd (ASX: CTD)

A notice of initial substantial holder reveals that ECP Asset Management has been buying this corporate travel specialist’s shares. ECP is an active investment company which has beaten the market since 2010. It likes to invest with a long term approach in companies with durable competitive advantages and a sustainable business model.

According to the notice, ECP was buying shares last week. These latest purchases pushed its holding to a total of 5,611,329 shares. This represents a 5.15% stake in Corporate Travel Management. With the company’s shares down 42% from their 52-week high (even after a strong gain today), it appears as though this fund manager sees a lot of value in them.

Infomedia Limited (ASX: IFM)

A notice of change of interests of substantial holder shows that WAM Capital Limited (ASX: WAM) has been increasing its stake in this automotive software company. WAM is a leading fund manager founded by Geoff Wilson AO.

According to the notice, WAM has been on a buying spree since the start of May and has grown its position by 7.2 million shares since its last notice at the end of April. This means WAM now owns a total of 24,034,732 shares, which represents a 6.42% stake in Infomedia. When the fund manager first started to top up its holding, Infomedia’s shares were down 37% from their high. This appears to have been a level which WAM felt was undervalued. But given that it was still buying shares as recently as last week, it must still see value in them today.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Infomedia. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s a rare ASX share which can give investors both growth and income. But that’s exactly what we’re trying to find today. Normally, investors either stick with a ‘growth strategy’ or an ‘income strategy’ but with Magellan High Conviction Trust (ASX: MHH) and NIB Holdings Limited (ASX: NHF) shares, we’re looking for both. 

Why wouldn’t you want the benefits of a growing company and one that pays you income along the way? 

Magellan High Conviction Trust 

This Listed Investment Trust (LIT) from Magellan Financial Group Ltd (ASX: MFG) is geared for growth. It only invests in 8-12 companies that Magellan decides are the ‘best in the world’. Right now, this includes Alibaba, Alphabet, Microsoft and Visa.

I think this trust is a great long-term investment for both growth and income. It’s built to harness the potential of companies that compound earnings growth at market-beating levels. All of its holdings also operate in growth industries like e-commerce and cashless payments.

But there’s potential for income, too. MHH aims to pay a decent 3% distribution yield every year to its investors. You can either take this in cash or choose to reinvest it for a 5% discount – a nice perk. For its exposure to some of the best growth companies in the world as well as its shareholder-friendly dividend policy, I think MHH is a top buy today for both growth and income.

NIB Holdings 

NIB is the second-largest ASX-listed health insurance provider after Medibank Private Ltd (ASX: MPL). Even though NIB shares have recovered substantially since March, the NIB share price remains well below its 52-week high of $8.20 today. Thus, I think it could be a great time to pick up this company on current prices ($4.69 at the time of writing).

NIB has a long history of providing both growth and income for ASX investors. Its shares have almost quadrupled over the past decade and it has grown its dividend meaningfully over the same period. Right now, NIB is offering a trailing 4.81% dividend yield, fully franked.

The private health insurance industry is facing a few headwinds in the coming years, including expensive premiums and falling membership from young Australians. But the importance of this industry towards government expenditure on healthcare will give providers like NIB accommodative government policy which, in my view, will ensure its prosperity in the years ahead.

Thus, I think this ASX company is a good long-term buy today for both growth and potential income down the road.

More reading

• Top brokers name 3 ASX 200 shares to sell next week
• ASX 200 rises 0.8%, travel shares fly higher
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 investor in your 40s? 3 shares to buy now
• Ready to invest your first $1,000? Try these 2 ASX shares

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Magellan High Conviction Trust, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares) and Visa. The Motley Fool Australia has recommended Alphabet (A shares) and NIB Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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