Affluence Small Company Fund

Affluence Small Company Fund April 2017

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To view the full Affluence Small Company Fund April 2017 report in pdf format, click here.

We believe that investing in smaller companies through quality investments across different managers, investment strategies and structures can provide higher returns over time, with less risk, than the ASX 200 index.

The Fund provides access to a diversified portfolio of small Australian companies via unlisted funds and LIC’s selected by Affluence.

Report Summary

The Australian market increased in April, with the ASX Small Ordinaries decreasing by 0.3% for the month. The Affluence Small Company Fund decreased by 2.0% in April, to result in the first 12
months since inception of 7.9%. This is below our benchmark (ASX Small Ordinaries) which returned 10% for the same period. However, many small cap funds have struggled over the past 12 months, and we believe there are better times ahead for the sector.

All of our unlisted fund investments recorded decreases in April, with returns of -0.5% to -3.2%. During the month we redeemed our position in the Ausbil Microcap Fund, as the two portfolio managers both left to pursue other opportunities. We believe that outperformance comes from talented individuals more so than an investment process. We have identified a number of replacement investments which we will look to invest into in the coming month.

The Australian market decreased in May, with the ASX Small Ordinaries decreasing by 2.0% for the month. The Affluence Small Company Fund decreased by 0.3% in May, with the Fund returning 6.9% per annum since inception. The Fund has outperformed its benchmark (ASX Small Ordinaries) over 12 months and is slightly behind since inception.

At the end of the month, the Fund held investments in 4 unlisted funds representing 72% of the total portfolio. The balance was in 5 LICs accounting for 13% of the total portfolio, and 15% cash.

Learn more

Visit the Affluence Small Company Fund page.

If you are interested in investing in the Affluence Small Company Fund, and you qualify as a Wholesale or Sophisticated investor, please let us know.

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