Affluence LIC Fund Update – January 2017

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

The ASX 200 Accumulation Index decreased by 0.8% in January, but it was split between large resource companies performing very well, and financial and industrial stocks weighing on the index. It was a quiet start to 2017 for the Affluence LIC Fund, increasing by 0.1% to conclude 9 months since inception with no negative results. At the end of January the Fund held investments in 21 Listed Investment Companies representing 83% of the Fund, almost 17% in cash, and under 1% in index put options to provide limited
protection from elevated market prices.

Our biggest contributors to this month were AFIC Notes (AFIG), Australian Equity Performance Fund Limited (AEG), and Katana Capital (KAT). AEG is a new position we have recently added to the portfolio. It is managed by Bennelong Long Short Equity who have a long history in this strategy and their long term performance is exceptional. However, they had a very tough 2016 and we took the opportunity to purchase this LIC at well below the IPO price just over a year ago.

We also believe that this is an opportune time to be adding to our market neutral and long short allocations when long only strategies appear reasonably elevated. Currently this fund is closed for investment, however if you are interested in investing in this fund, please let us know and we will place you on the waiting list if we open it in the future.

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