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Affluence Small Company Fund

Affluence Small Company Fund October 2017

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To view the full Affluence Small Company Fund October 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 was flying in October, with the ASX Small Ordinaries Index up 6.0% for the month. The Affluence Small Company Fund failed to keep up, however still increased by 2.7%. The Fund has returned 10.5% per annum since inception.

Our managers produced mixed results this month. The standout was our newest investment, the Terra Capital Natural Resources Fund, which increased by 13.4% for the month. There was only one detractor, the Spheria Australian Microcap Fund which was down 1.6%.

Our overall portfolio has a value bias and is more concentrated in microcaps. The standout performers this month were the small/mid cap growth stocks. As such, our relative underperformance was not surprising. We are very happy with all of our managers, and look forward to adding to the portfolio in the future.

At the end of the month, the Affluence Small Company Fund held investments in 6 unlisted funds (including the Affluence LIC Fund) representing 94% of the total portfolio. The balance 6% was cash.

Learn more

Visit the Affluence Small Company Fund page.

We have identified a number of other outstanding small cap managers that we would like to add to the portfolio in the 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.

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