May 2026 positive returns and we analyse almost 30 years of combined fund return data

May 2026 saw positive returns from three of our funds:  

• +0.6% for the Affluence Income Trust (+7.1% over 1 year). 
• +1.0% for the Affluence Investment Fund (+10.2% over 1 year). 
• +0.2% for the Affluence LIC Fund (+9.8% over 1 year). 
• -0.2% for the Affluence Small Company Fund (+12.7% over 1 year). 

More details are in our monthly fund reports, which you can access below. 

We’re gearing up for financial year-end. It is likely that our Affluence Investment Fund, Affluence LIC Fund and Affluence Small Company Fund will pay a higher distribution than normal for June, as we factor in additional investment gains realised during the year. Details of final distributions will be included in June distribution advices, which are expected to be sent out on 13 July. You can keep up to date with year end processes, including dates for sending out tax and investment statements in the 2026 Financial Year Information post here.

Speaking of year end, in the article below we analysed 30 years of our combined fund return data to uncover some surprisingly consistent seasonal patterns. June year end has typically been the best month to invest with us, as July has historically been the strongest month for three of the Affluence funds. In the article below, we explore the role of tax-loss selling in this phenomenon.

Should you wish to invest in any of our funds this month, head to the invest page to apply online or download paper forms. Applications received by the cut-off dates will be effective from 1 June.

As always, thanks for reading. If you have any questions or feedback, reply to this email or give us a call.

Regards,

Daryl, Greg and the Affluence Team.

Affluence Funds Returns

Affluence Income Trust

The Affluence Income Trust returned 0.6% in May and 7.5% per annum since commencing. The current distribution rate is 7.35% per annum paid monthly.

Affluence Investment Fund

Affluence LIC Fund

The Affluence LIC Fund returned 0.2% in May and 10.6% per annum since commencing. At the end of the month, the average portfolio NTA discount was around 27%.

Affluence Small Company Fund

The Affluence Small Company Fund returned -0.2% in May and 9.1% per annum since commencing. There’s still exceptional value in many smaller companies.

The best time of year to have invested with Affluence

We analysed almost 30 years of combined fund return data to uncover some surprisingly consistent seasonal patterns. July has historically been the strongest month for all three Affluence funds, while March has been the weakest.   We explore the role of tax-loss selling, investor behaviour and market psychology, and explain why understanding these patterns may help investors better navigate market cycles

Application and Withdrawals

To make a new investment, add to your existing investment or arrange a withdrawal from any of our Funds, head to our Invest page. There you can apply online or download paper forms.

Cut-off dates for Applications and Withdrawals this month are shown below.

Looking for an Alternative to Hybrids

With APRA phasing out traditional bank hybrids over time, many income investors are starting to think about what comes next.

In this article we look at why the Affluence Income Trust may be a compelling alternative. The Trust currently targets monthly distributions of the RBA cash rate + 3% p.a. (currently 7.35% p.a.), paid in cash each month. 

We compare AIT with bank hybrids across yield, income frequency, diversification and risk. We also and explain why investors seeking regular income and diversification beyond the banks may want to take a closer look. 

Fund In Focus

Affluence Income Trust

Are you looking for an investment option that targets decent, regular income, but without the risk associated with stock markets? Our Affluence Income Trust might be worth a look.

The Fund aims to provide you with:

• A minimum distribution equal to the RBA Cash Rate plus 3% per annum, paid monthly.
• Preservation of capital over rolling 3 year periods after payment of distributions.
• Access to a highly diversified portfolio of fixed income assets, with a focus on maximising returns with low volatility.

The current distribution rate is 7.35% per annum. Returns since inception have averaged 7.5% per annum*.

The Affluence Income Trust invests in a highly diversified fixed income portfolio, with a focus on maximising returns with low volatility. The Fund has a flexible investment mandate. This allows us to take advantage of what we believe to be the best risk adjusted investment opportunities within the fixed income asset class at any given time.

We aim for the portfolio to be diversified within the fixed income asset class by sub-sector, underlying manager, investment strategy, credit risk, liquidity, and investment structure.

The Fund is designed for use as up to a Core Component of an investment portfolio for those investors seeking Income and Capital Preservation with a one year or longer investment timeframe, a Low risk/return profile and needing access to capital Monthly or less often.

You can learn more about the Fund from the Fund Page on our website which you can access by clicking below.

Let us know if you would like us to call you to discuss the Fund in more detail.

Things we found interesting

Video Of the Month

Legendary investor Seth Klarman did something he rarely does earlier this month. He spoke publicly. This 25 minute interview at the Global Alts New York conference is compulsory viewing for value investors. 

Topics include the AI bubble debate, value investing in a 40x PE market, AI agnostic plays, commercial real estate, distress, the credit cycle, US debt, and why the risk free asset is starting to look risky. Watch it.

Vaguely interesting facts.

Astound your friends with these morsels of knowledge:

• Trees can communicate with each other through underground fungal networks (“wood wide web”). 
• The Titanic had a scheduled safety drill the day it sank—but it was cancelled
• Your brain shrinks slightly during the day and regrows overnight. 
• There are over 7,000 languages spoken today
• The smell of rain is called “petrichor.” *

* The term Petrichor, the earthy smell that often accompanies rain, was coined in 1964 by Australian scientists, Isabel Joy Bear and Richard Thomas. It’s a combination of Petra (Greek for “stone”) and Ichor (the mythical fluid that flowed in the veins of the Greek gods). 

What’s causing the smell? During dry periods, plants release oils into soil and rocks. Certain soil-dwelling bacteria produce a compound called geosmin. When rain hits the ground, tiny air bubbles become trapped and then burst, launching microscopic droplets containing these compounds into the air.  Our noses are very sensitive to geosmin. Scientists believe our sensitivity may be evolutionary. For our ancestors, the smell of rain often signalled the arrival of fresh water and changing weather conditions.

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