Investment Objective & Strategy
The Affluence LIC Fund is currently closed to new investors. If you hold an investment in any Affluence Fund, you can apply to invest in the Affluence LIC Fund. If you already have an investment in the Fund, you can continue to add to your investment.
If you wish to be advised should the Fund open again in the future, email [email protected] with your contact details and an indication of how much you would consider investing if the Fund were reopened.
The Affluence LIC Fund is a limited capacity strategy that provides access to a diversified portfolio of 20 to 35 ASX Listed Investment Companies (LICs). The Fund aims to outperform the ASX 200 Accumulation Index with volatility of returns which is significantly less than the ASX 200 Index measured over rolling 3 year periods. The Fund also aims to pay a minimum distribution yield of 5% per annum, paid quarterly.
The Affluence LIC Fund invests in LICs using the following strategies:
- Alpha Generators – LICs that can outperform the market.
- Discount Capture – LICs trading at discounts to their NTA.
- Event Driven – special situations such as IPO’s and other events.
Through the investments in LICs, the Fund provides access to a broad range of underlying investment styles, investment strategies, and geographies.
The Affluence LIC Fund’s Key Features
Diverse Investment Portfolio
The Fund is likely to hold 20-35 investments at any given time, but may hold more or less than this.
Three Ways to Add Value
The Fund aims to hold LICs that can outperform the market, buy at discounts to NTA and participate in event-driven opportunities.
Monthly Applications and Withdrawals
Applications and Withdrawals are processed monthly.
Minimum Initial Investment
You can invest as little as $20,000 and grow your investment over time.
Minimum Additional Investment
You can add to your investment from as little as $1,000.
Quarterly distributions can be reinvested to compound the returns on your investment.
We Get Paid to Perform
Affluence charge no fixed fee, simply a performance fee equivalent to 12.5% of positive total returns delivered.
Regular Fund Reporting
Reports detailing the Fund’s performance, strategy and portfolio are provided monthly.
Fund Performance - Affluence LIC Fund
|2016||N / A||N / A||N / A||N / A||1.0%||0.1%||4.9%||1.1%||1.4%||0.5%||1.6%||1.5%||12.6%|
|Strongest Return||Positive Return||Stable Return||Negative Return||Weakest Return|
Performance is net of fees and costs. Past performance is not an indicator of future performance. Affluence makes no representation nor provides any guarantee as to the future success of the Fund.
Fund Performance - Affluence LIC Fund
|To 30 June 2021||1 month||1 year||3 years||5 years||Inception||Volatility|
|Affluence LIC Fund||5.1%||43.2%||15.7%||14.6%||14.4%||9.5%|
|ASX 200 Accumulation Index||2.3%||27.8%||9.6%||11.2%||10.9%||14.4%|
|Outperformance against ASX 200 Index||2.8%||15.4%||6.1%||3.4%||3.5%||N/A|
Affluence LIC Fund Unit Prices
|As at 30 Jun 21|
We have Outperformed in Negative Share Market Periods
Portfolio Discount to NTA
As with all investments, the Fund is subject to risks. If these risks eventuate, they may result in a reduction in the value of your investment in the Fund and/or a reduction or cessation of distributions. Distributions are not guaranteed, nor is the return of your capital. Past performance is not indicative of future performance.
It is important that you know that the value of your investment will go up and down over time, the Fund’s returns will vary over time, future returns may differ from
past returns and returns are not guaranteed. All of this means that there is always the chance that you could lose money on your investment.
As set out in the product disclosure statement dated 8 August 2019 (“PDS”), key risks include concentration and volatility risk, economic and market risk, legal and regulatory risk, manager and key person risk, and currency risk. AFM aims, where possible, to manage risks. However, some risks are outside our control.
Take a look at the largest holdings in the Fund, including portfolio weighting and commentary. Affluence Members Only.VIEW PORTFOLIO
Latest Fund Report
Download the latest report, including market commentary & information on the Affluence LIC Fund performance.VIEW REPORT
To view past reports, click here.
Download the latest presentation to learn about Affluence, how we invest, Fund portfolios and performance.PRESENTATION
Access documents and forms for all our Funds to invest, update your investment details or make a withdrawal.INVESTOR FORMS
Affluence LIC Fund News & Updates
Keep up to date with the changes to the Fund’s portfolio, fundamentals and performance.
In our 2021 investor letter, we reflect on performance, portfolio positioning, opportunities and what to expect in the current environment.
Below is the June 2021 financial year distribution and tax information for each of our …
We’ve previously written about how the 14-month period from 31 January 2020 to 31 March …
How To Invest In The Affluence LIC Fund
Step 1: The Product Disclosure Statement
Before making any decision to invest, you should read and understand the Fund’s Product Disclosure Statement (PDS) and you should ensure the Fund is appropriate for your personal circumstances and financial objectives. You may wish to consult with your financial or other advisor in making this assessment.
You can download the PDS and Application Pack by clicking the button below.INVEST NOW
Step 2: Make an application
Applications are accepted monthly. The cut-off for applications is the last business day of each month. Completed applications received by this date are processed as at the 1st of the next month.
To invest in the Affluence LIC Fund you must complete an application form. If you have not invested with Affluence previously, you will also need to complete identification forms and provide acceptable proof of identity documents.
Investors can complete the relevant application form attached to the Product Disclosure Statement or apply securely online through our registry provider Boardroom. Applying online can be significantly easier and faster than paper-based applications and provides the option to verify or upload your identification online, reducing the need to provide certified copies of documents.
The Affluence LIC Fund closed to new investors on 30 June 2021. From that date, only existing Affluence clients can invest in the Fund.
You can access the PDS, invest online or download paper application forms by clicking the button below.INVEST NOW
Step 3: Provide documents and make payment
Send the application documents (including any required identification documents) to the Fund registrar for processing and make payment of the application amount. Payments can be made via cheque or electronic transfer.
You will receive an acknowledgment as soon as possible after the Fund registrar receives your application documents and funds.
You will receive your investment confirmation once the application has been processed. This normally occurs within 10 days after the end of the month in which your application is accepted.INVEST NOW
Frequently Asked Questions
The current Fund size means we can still access the opportunities available through smaller and more illiquid LICs, which have substantially contributed to the Funds’ performance since inception. Closing the Fund to new investors preserves the remaining capacity of the Fund for existing Affluence clients.
Yes, for now, the Fund remains open for existing investors to add to their holding.
The Fund may open to admit new investors again in the future. It is most likely this would happen only for a short period, and after we have seen a big market correction and an expansion of NTA discounts. That is when we will be able to put significant capital to work at attractive prices.
Yes, you can still lodge a withdrawal request at any time, including after the Fund closes to new investors. Withdrawals are generally processed monthly and paid out within 10 business days after the end of the month, although we reserve the right to process these less frequently in exceptional circumstances.
The minimum initial investment amount is $20,000. You can add additional amounts later from as little as $1,000. Applications are processed monthly. Application funds awaiting processing are held in a trust account.
The Fund aims to provide you with a minimum distribution yield of 5% per annum, paid quarterly. Generally, distributions will consist of a share of the income and franking credits the Fund receives during the year from its LIC investments, plus any taxable capital gains from sales of investments, less costs (including our performance fees).
Distributions are generally paid 10 days after the end of each quarter. Distributions are paid to your nominated bank account or can be reinvested if you wish.
Partly. The Fund distributes all franking credits received from LICs to investors at the end of the tax year. Franking credits are usually distributed in proportion to distributions paid during the year. So, if you were only an investor for part of the year, you will receive a lower proportion of franking credits than if you were invested for the full year. See here for the full distribution and franking history of the Fund.
You will receive a monthly report outlining the Fund portfolio and performance, quarterly distribution advices, annual investment statements showing investment transactions and the value of your investment, and an annual tax statement with details of the amounts to be included in your tax return.
Affluence does not charge any fixed fee for managing the Fund. Instead, we charge a performance fee of 12.5% of the Fund’s positive returns (after recovering any previous negative performance). Affluence also recovers certain costs from the Fund. These cost recoveries are generally capped at 0.25% of the net assets of the Fund per annum. Other costs are also payable. These fees and costs are not paid by you directly but are paid out of the assets of the Fund. All Fund performance numbers shown are after allowance for these fees and costs.
You may also pay fees to a financial advisor or investment platform operator if you invest through them. These fees are not paid to Affluence or the Fund. Please refer to the PDS for more information about fees and costs.