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Affluence Small Company Fund

Affluence Small Company Fund August 2017

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

We believe that smaller companies can provide higher returns over time than the ASX 200 index. Investing in smaller companies through different managers, investment strategies and structures can help to reduce risk.

The Fund provides you access to a diversified portfolio of small companies via unlisted funds and LICs selected by Affluence.

Report Summary

The Australian market increased in August, with the ASX Small Ordinaries increasing by 2.7%. The Affluence Small Company Fund had a muted month and increased by 0.2%. The Fund has returned 8.5% per annum since inception. The Fund has slightly underperformed its benchmark (ASX Small Ordinaries) since inception. However it has delivered its returns with about half the volatility of the ASX Small Ordinaries.

We exited one of our investments towards the end of the month. After four and a half years together, the two co-portfolio managers of this fund decided to go their separate ways. One of our beliefs is that we invest with the individuals managing the money, not with the company or a process. Therefore our default position when there is a significant manager personnel change is to redeem our investment. We were happy with the fund, and will continue to monitor it under the new management team. We may re-invest in the future once the dust settles and we can re-assess.

At the end of the month, the Affluence Small Company Fund held investments in 5 unlisted funds (including the Affluence LIC Fund) representing 81% of the total portfolio. The balance 19% was 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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