Affluence Investment Fund

Affluence Investment Fund Update – February 2017

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To view the full Affluence Investment Fund Update – February 2017 in pdf format, click here.

In February the ASX 200 increased by 2.3%, and returned 22.1% over 12 months and 2.6% per annum over 2 years. Over these same periods the Affluence Investment Fund increased by 1.2% in February, 13.4% over 12 months and 10.0% per annum over 2 years. Since inception in December 2014 the Fund has returned 10.0% per annum, ahead of the benchmark (inflation plus 5%) of 6.8% per annum and the ASX 200 of 7.9% per annum.

Our best performing investment this month was the listed Brookfield Prime Property Fund, which increased 25% over the month on the back of a strong financial result and increase in NTA. Other strong results included the Terra Capital Natural Resources Fund up 13.6%, the Phoenix Opportunities Fund up 4.8%, and the India Avenue Equity Fund up 4.3%. Our long only and long short equities funds were mixed, depending on how their portfolios were positioned during the reporting season. Over the medium to long term, we have confidence in all our managers to produce above benchmark risk adjusted returns.

During the month we made two new investments, increasing our exposure to the Phoenix Opportunities Fund and a new fund called the Paragon Australian Long Short Fund. Paragon is a boutique manager who run a top down theme led, long short strategy that is generally half resources and half financials and industrials. They average around 110% gross exposure and 70% net exposure. While they have displayed higher volatility than most investments in the portfolio, they also have the potential to produce substantial outperformance.

At the end of February, the Fund held investments in 26 unlisted funds representing 57% of the portfolio. The Affluence LIC Fund accounted for 19% of the portfolio, and provided exposure to 19 LIC’s. We held investments in 5 other listed entities which represented 8% of the Fund, with the remaining 16% held as cash.

If you’d like further details of the Affluence Investment Fund portfolio at any time, just email us and we’ll provide it to you.

If you would like to invest with us and get access to over 30 of Australia’s best fund managers, we encourage you to utilise our online application facility. Just follow the link on our website. If you’d like to add to your existing investment, you can either complete the one-page form available on our website, or use the online facility. A reminder, the cut-off for this month’s investment intake is 24th March.

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