Affluence Income Trust (AIT)
A highly diversified portfolio of fixed income assets that aims to provide investors with a minimum distribution equal to the RBA Cash Rate plus 3% per annum paid monthly over rolling 3 year periods after payment of distributions.
- Access to a highly diversified portfolio of fixed income assets.
- A minimum distribution equal to the RBA Cash Rate plus 3% per annum, paid monthly.
- Preservation of capital over rolling 3 year periods after payment of distributions.
The Fund aims to achieve the investment objectives by investing predominantly in a highly diversified fixed income portfolio, with a focus on maximising returns with low volatility.
The fixed income asset class broadly includes different types of bonds, loans and other debt securities, where a borrower is advanced funds by one or more investors for a fixed term. The borrower pays agreed income payments during the term and at maturity, the borrower must repay the original (principal) amount to the investor.
Fixed income investors usually have the right to be repaid before equity holders.
Common types of fixed income assets include:
- Government and semi-government bonds.
- Bank bonds and hybrids.
- Corporate bonds and loans.
- Private credit (loans).
- Asset backed securities.
- Commercial real estate debt.
- Residential real estate debt.
Fund Investments predominantly comprise a range of unlisted managed funds run by a selection of Underlying Managers who specialise in fixed income. The Fund may also hold Investments in other listed or unlisted assets and cash.
The Fund has a flexible investment mandate. This allows us to take advantage of what we believe are the best risk adjusted investment opportunities within the fixed income asset class at any given time. The portfolio is likely to have the following features:
- Highly diversified within the fixed income asset class by sub-sector, Underlying Manager, investment strategy, credit risk, liquidity, and investment structure.
- Highly diversified by Underlying Debt Security, borrower and industry.
- Exposure to investment grade and non-investment grade securities, traded and private securities, and senior and subordinated securities.
- Access to a range of Investments that are only directly available to wholesale investors.
The portfolio may include some assets which have both debt and equity features, or which are outside the fixed income asset class.
Affluence seeks to achieve the Fund investment objectives by choosing attractive Investments overseen by quality Underlying Managers. We use a number of processes to identify potential investments, including screening for historical performance, volatility and other criteria.
Click here to see our latest Performance details.
- This information has been prepared by Affluence Funds Management Limited ABN 68 604 406 297 AFS licence no. 475940 (Affluence) as general information only in relation to the Affluence Income Trust ARSN 673 932 271 (Fund). It does not purport to be complete, and it does not take into account your investment objectives, financial situation or needs. Prospective investors should consider those matters and read the Product Disclosure Statement (PDS) and the Target Market Determination (TMD) for the Fund before making an investment decision. The PDS is available at https://affluencefunds.com.au/ait/ and contains important notices and disclaimers, important information about the offer, as well as investment risks. There is no guarantee of any distribution, forecast, investment return or repayment of capital. This information and the information in the PDS is not a recommendation by Affluence or any of its officers, employees, agents or advisers. Potential investors are encouraged to obtain independent expert advice before any investment decision.
- Performance data for the Fund is expressed net of fees and costs (excluding the buy-sell spread). Performance calculations assume the reinvestment of distributions. Returns for periods of more than 1 year are annualised. Past performance is not indicative of future performance. The inception date of the Fund is 28 July 2023.
- The Fund aims to pay a minimum distribution equal to the RBA Cash Rate plus 3% per annum, paid monthly. Distributions are not guaranteed and may be paid above or below this amount.
- Affluence do not charge any fixed fee for managing the Fund. Affluence charge a performance fee equal to 10% of positive returns. Fees are also payable to the managers of underlying investments and there are expenses associated with the Fund and its underlying investments. Fees and costs related to underlying investments are not paid by the Fund directly, but are reflected in the performance of those investments.
Affluence was formed to provide better investment solutions. We believe in doing things differently.
Our focus is on delivering superior long term investment performance and providing quality education and investment ideas for our Investors.
We are contrarian, value focused, and invest for the long term. We believe exposure to quality investments across multiple asset classes, managers, geographies and strategies should be a fundamental building block of any well diversified portfolio.
We pride ourselves on the quality of our products and alignment with our investors. We were the first investors in each of our Funds and a significant proportion of our own and extended families wealth is invested in our Funds.
We believe managing less money than average provides us with significant advantages. So while we don’t aim to be one of the biggest managers, we do aim to be one of the best.
Daryl and Greg are the key persons managing the Fund. Both Daryl and Greg spend the majority of their time managing the investment portfolios of the Fund and other AFM-managed funds.
Daryl is co-manager of the Fund investment portfolio.
Daryl has experience across all aspects of funds management including investment, operations and capital raising.
For over 15 years prior to forming Affluence, Daryl was a Director of Cromwell Property Group, an ASXlisted property and fund manager.
From 2008 until 2015, Daryl was responsible for Cromwell’s unlisted funds management business, which created and managed investment funds worth over $1 billion.
Daryl holds a Bachelor of Commerce, a Diploma of Financial Planning and is a member of the Institute of Chartered Accountants.
Greg is co-manager of the Fund investment portfolio.
He is primarily responsible for analysing new investment opportunities, asset allocation, fund analysis, performance reporting, and investment management.
Prior to joining Affluence, Greg was employed by Cromwell Property Group for over 9 years. During this time, he held a range of positions including fund analyst, transactions analyst and investment strategist.
Greg holds a Bachelor of Applied Science (Property Economics).
Click here to view our latest Fund Report.
Click here to view our past Fund Reports.
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You can lodge a withdrawal request form at any time. Withdrawals are generally processed monthly and paid out within 10 business days after the end of the month, although we reserve the right to process these less frequently in exceptional circumstances.
The Fund aims to provide you with a minimum distribution yield equal to the RBA Cash Rate plus 3% per annum, paid monthly. Generally, distributions will consist of a share of the income the Fund receives during the year from its investments, plus any gains from sales of investments, less costs (including our performance fees). Distribution rates may be smoothed to ensure consistency but are based on our assessment of the expected earnings of the Fund’s investment portfolio over time. See here for the full distribution history of the Fund.
Distributions are generally paid 10 days after the end of each month. Distributions are paid to your nominated bank account or can be reinvested if you wish.
No. Because the majority of the income of the Fund is generated from fixed income investments, the Fund is unlikely to generate a significant amount of franking credits.
You will receive a monthly report outlining the Fund portfolio and performance, monthly distribution advices, annual investment statements, and an annual tax statement with details of the amounts to be included in your tax return.
Affluence does not charge any fixed fee for managing the Fund. Instead, we charge a performance fee of 10% of the Fund’s positive returns (after recovering any previous negative performance). Affluence also recovers certain costs from the Fund. These cost recoveries are generally capped at 0.25% of the net assets of the Fund per annum. Other costs are also payable. These fees and costs are not paid by you directly but are paid out of the assets of the Fund. All Fund performance numbers shown are after allowance for these fees and costs. You may also pay fees to a financial advisor or investment platform operator if you invest through them. These fees are not paid to Affluence or the Fund. Please refer to the PDS for more information about fees and costs.
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The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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