Through the ALF we seek to take advantage of opportunities available in the LIC sector, with a focus on LICs trading at attractive discounts to NTA. Through LICs, the Fund provides access to a broad range of investment styles, strategies and geographies.
| 1 month | 3 month | 1 year | 3 year | 5 year | Since Inception | Inception Date |
|---|---|---|---|---|---|---|
| 0.22% | -4.49% | 9.75% | 9.22% | 7.66% | 10.59% | 3 May 2016 |
| Management Fee | Performance Fee | Morningstar Total Cost Ratio |
|---|---|---|
| - | 2.55% | 4.13% |
The Affluence LIC Fund is one of the only funds in Australia that focuses on investing in LICs.
Through LICs, the Fund provides access to Australian and global equities as well as some exposure to other asset classes. These LICs use a broad range of investment styles and investment strategies.
Despite the large size of the LIC sector, there is relatively limited attention from institutional researchers and professional investment managers. This can provide more opportunities for mispricing than in other areas of the stock market. In addition, some quality investment managers can only be accessed through LICs.
The Fund aims to outperform the ASX 200 Accumulation Index over rolling 3 year periods and to deliver these returns with less volatility than the Index.
The Fund aims to invest in 20-35 LICs that meet one or more of the following criteria;
Portfolio Use
The Fund is designed to be used as part of an investment portfolio for those investors seeking Capital Growth and Income Distributions with a longer investment timeframe, at least a High risk/return profile and needing access to capital Monthly or less often.
Access to Differentiated Strategy
The Fund provides access to a unique investment strategy that may complement investor's portfolios.
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The Fund has outperformed the ASX200 Index since inception, with significantly lower volatility.
As with all investments, the Fund is subject to risks. The value of an investment will go up and down over time, the Fund’s returns will vary, future returns may differ from past returns, and returns are not guaranteed. This means that there is always the chance that you could lose money on an investment in the Fund.
The Fund aims to provide you with:
• A total annualised return (distributions plus increase in Unit Price) after all fees and costs in excess of the ASX 200 Index over rolling 3-year periods.
• Access to a diversified portfolio of predominantly equity-based investments.
• Volatility of returns which is significantly less than the ASX 200 Index, measured over rolling 3-year periods.
• A minimum distribution yield of 5% per annum, paid quarterly.
The investment objective is a target only and returns from the Fund are not guaranteed.
We seek to identify attractive LIC investments which meet one or more of our three criteria. Some LIC investments may satisfy more than one criteria.
We seek to invest a substantial portion of the Fund’s portfolio in Alpha Generators. These are LICs where we have a high degree of confidence in the underlying manager being able to outperform their relevant market benchmark (for example the ASX 200 Index), on a risk-adjusted basis over reasonable periods of time. Alpha Generators tend to be core, longer-term holdings in the portfolio.
We use a number of processes to identify Alpha Generators, including measuring historical performance, volatility and other quantitative and qualitative criteria.
Individual LICs often trade at prices significantly above or below their NTA. There are many factors that contribute to the level of discount/premium. Some of the main factors are; historical performance, dividend profile, market capitalisation, underlying asset type, portfolio concentration, market conditions, and marketing to investors. The discount capture strategy aims to purchase LICs when they are trading at a larger discount, or smaller premium than their assessed average, with the intent of selling the LIC when the discount reduces or premium increases.
Like other listed entities, LICs undertake corporate actions such as IPOs, capital raisings, and option-to-share conversions. The Fund aims to participate in these events where we believe we can generate attractive risk-adjusted short-term returns.
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 LIC Fund (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 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 1 May 2016.
The Fund aims to pay distributions of approximately 5% pa paid quarterly. Distributions are not guaranteed and may be paid above or below this amount.
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 has overall responsibility for investment and funds management activities at AFM. Daryl was responsible for setting up the Fund in late 2014 and is co-manager of the Fund's investment portfolio.
Daryl has experience across all aspects of funds management including investment, operations and capital raising.
Prior to forming AFM, Daryl was a Director of Cromwell Property Group, an ASX-listed property and fund manager, for over 15 years.
From 2008 until 2015, Daryl was responsible for Cromwell’s unlisted fund management business, which created and managed investment funds worth over $1 billion and delivered impressive returns for the thousands of investors in these funds.
Daryl holds a Bachelor of Commerce, a Diploma of Financial Planning and is a member of the Institute of Chartered Accountants.
Greg joined AFM in 2015. Greg is the 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 AFM, 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).
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The minimum initial investment amount is $20,000. You can add additional amounts later from as little as $1,000. Applications are processed monthly. Application funds awaiting processing are held in a trust account.
The Fund aims to provide you with a minimum distribution yield of 5% per annum, paid quarterly. Generally, distributions will consist of a share of the income and franking credits the Fund receives during the year from its LIC investments, plus any taxable capital gains from sales of investments, less costs (including our performance fees).
Distributions are generally paid 10 days after the end of each quarter. Distributions are paid to your nominated bank account or can be reinvested if you wish.
Partly. The Fund distributes all franking credits received from LICs to investors at the end of the tax year. Franking credits are usually distributed in proportion to distributions paid during the year. So, if you were only an investor for part of the year, you will receive a lower proportion of franking credits than if you were invested for the full year. See here for the full distribution and franking history of the Fund.
You will receive a monthly report outlining the Fund portfolio and performance, quarterly distribution advice, annual investment statements showing investment transactions and the value of your investment, 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 12.5% 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. The Underlying Managers of the LICs the Fund invests in also charge fees for their services. 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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