To view the full Affluence Investment Fund Update – September 2016 in pdf format, click here.
The Affluence Investment Fund increased by 0.6% in September, slightly ahead of the ASX 200 Accumulation Index and our inflation plus 5% target. Performance for the past 12 months was 11.8%, and annualised performance since inception 11.0%.
Of the Fund’s 25 unlisted fund investments, 16 provided positive returns. The Affluence LIC Fund was the biggest positive contributor to performance, with other strong results from the Cromwell Direct Property Fund, the Microequities Deep Value Microcap Fund, and the Smallco Broadcap Fund. The largest detractors this month were the Totus Capital Alpha Fund and the Auscap Long Short Australian Equities Fund.
In September we made investments into two new funds, the KIS Capital Asia Long Short Fund and the Heathley Direct Medical Fund No. 1. We also made an additional investment into the Affluence LIC Fund. The KIS Capital Asia Long Short Fund has a wide investment mandate in terms of geographic region, assets traded and strategies employed. The fund seeks to generate absolute returns of 10-15% per annum after all fees without noticeable correlation to any particular asset class or market. To date the fund has been biased towards Australia, and net exposure (long positions less short positions) have been very low. This has resulted in the fund having good returns, low volatility and a very low correlation with the ASX 200. The Heathley Direct Medical Fund No. 1 is a property fund that holds medical related assets (medical centres and private hospitals). We acquired a small position at NTA from an investor who wished to exit their investment. The fund pays quarterly distributions of 7.5-8.0%.
At the end of September, the Affluence Investment Fund held investments in 24 unlisted funds representing 60% of the total portfolio. The Affluence LIC Fund accounted for 19% of the total portfolio, and provided exposure to 23 LIC’s. We held investments in 5 other listed entities which represented 5% of the total portfolio, with the remaining 16% held in 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 October 25th.
If you know anyone that may be interested in the Fund, feel free to let them know.