To view the full Affluence Small Company Fund February 2018 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 managed funds and LICs selected by Affluence.
Report Summary
The ASX Small Ordinaries Index (the Fund benchmark) ended flat for the month. However, the index was down heavily early in the month before recouping the losses. The Fund had a weak month and decreased 1.6%. It has returned 10.4% per annum since commencement. The Fund has underperformed its benchmark (ASX Small Ordinaries) since inception, however, it has delivered its returns with about half the volatility of the ASX Small Ordinaries.
All of our investments fell during the month, with losses of between -0.1% to -4.3%. We usually expect to do better than the index in volatile periods, however, a one month period such as this is not an issue. We continue to have confidence in all our managers to perform over the longer term.
At the end of the month, the Affluence Small Company Fund held investments in 6 unlisted funds (including the Affluence LIC Fund) representing 96% of the total portfolio. The balance 4% was cash.
Learn more
Visit the Affluence Small Company Fund page.
We have identified a number of other outstanding small-cap managers to add to the portfolio in coming months. In order to make these additional investments, we are considering undertaking a small capital raising in the Fund.
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.
