To view the Affluence LIC Fund Report March 2018 in pdf format, click here.
The Affluence LIC Fund provides access to a diversified investment portfolio of ASX Listed Investment Companies (LICs) selected by Affluence. We aim to outperform the ASX200 Accumulation Index over rolling 3 year periods, with less volatility than the stock market. The Fund provides exposure to a broad range of underlying investment styles, investment strategies, and geographies.
Affluence LIC Fund Report Summary
After a volatile month for both global and local markets the ASX 200 Index fell 3.8% in March. The ASX Listed Investment Company Index was down 2.1% for the month. The Affluence LIC Fund faired comparatively well over this period, decreasing by 1.3%. Returns since inception for the Fund are 11.7% per annum, compared to the ASX 200 Index of 9.8% per annum. These returns have been delivered with approximately half of the volatility of the index.
In March the positive contributors included Australian Leaders Fund (ALF) up 4.5%, Bailador Technology Investments (BTI) up 3.7% and a short-term trade in Contrarian Value Fund (CVF) up 5.7%. The major detractors were Thorney Opportunities (TOP), Monash Absolute Investment Company (MA1) and MFF Capital Investments (MFF). The Fund also benefitted from a high cash holding of over 20% for most of the month. This helped to cushion the market fall.
At the end of March, the Fund held investments in 26 Listed Investment Companies representing 79% of the Fund, 21% in cash. The Fund also held some LIC call options (in case markets rally) and ASX 200 Index put options (in case markets fall significantly). We have been running above 20% cash for the past couple of months. This is partly due to limited compelling opportunities, and partly due to our sense of increased risk in the market. We believe the Fund is well positioned and diversified to withstand most market conditions. We are constantly looking for attractive opportunities to deploy capital into.
If you qualify as a wholesale/sophisticated investor and are interested in the Fund, contact us and we will let you know when the Fund is next open. Alternatively, you can gain access through our Affluence Investment Fund, which currently invests around 15% of its portfolio in the Affluence LIC Fund.
If you are interested in investing in the Affluence LIC Fund, and you qualify as a Wholesale or Sophisticated investor, please let us know. We will place you on the waiting list when we open it again in the future. If you do not qualify as a Wholesale or Sophisticated investor, you can still gain access through our Affluence Investment Fund, which currently invests around 15% of its portfolio in the Affluence LIC Fund. Existing investors can add to their investment or withdraw from the Affluence LIC Fund monthly.
Visit the Affluence LIC Fund page.
See the Affluence LIC Fund Portfolio here (you must be an Affluence Member to view)