Affluence Investment Fund

Affluence Investment Fund Update – January 2017

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Home » Affluence Investment Fund Update – January 2017

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

In January the ASX 200 decreased by 0.8%, but is now up 17.3% over 12 months. While this appears impressive, it was off a low base as during the prior 12 months the index was down 6.1%, to give a two year return of 4.9% per annum. A timely reminder of why you must be careful when assessing performance, especially over a short period. The Affluence Investment Fund increased by 0.3% in January, with a total return of 11.8% over 12 months and 9.5% per annum over two years.

Our best performing investments this month were both resources related, with the Baker Steel Gold Fund up 9.5%, and the Terra Capital Natural Resources Fund up 8.1%. Our long Australian equities funds were relatively flat, with the standouts being Sandon Capital up 4.4% and the Phoenix Opportunities Fund up 3.0%. Our four long/short funds were down 1.2% overall, continuing a generally tough 12 months for these strategies.

During the month we made two new investments, increasing our exposure to the Affluence LIC Fund and a new fund called the Cyan C3G Fund. Cyan is a small boutique manager specialising in small cap equities. One of the principals was an original founder of OC Funds Management, which now has substantial FUM and has produced excellent returns over many years using a similar strategy. We are excited about this investment, as the combination of good historical performance (both in this fund and previous funds) and low FUM, can translate into strong returns over the next 3 to 5 years.

At the end of January, the Fund held investments in 24 unlisted funds representing 56% of the portfolio. The Affluence LIC Fund accounted for 20% of the portfolio, and provided exposure to 21 LIC’s. We held investments in 6 other listed entities which represented 7% of the Fund, with the remaining 17% held as cash.

If you’d like further details of the Affluence 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 February.

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