The most important thing for managed funds is long-term performance
Investing Differently
The Affluence Investment Fund is built on a philosophy of doing things differently.- We aim to invest with the best investment managers in Australia. They are usually boutique fund managers who are often unknown by the greater investing community.
- We aim to pay monthly distributions. We understand that regular income is very important to many investors, and target a distribution yield of 5% per annum.
- We don’t charge any fixed management fees. Just a performance fee. 12.5% of positive returns. Any negative performance must be recovered first.
- We use some alternative strategies. Alternative strategies can perform much better in falling markets, which can help to limit falls and smooth returns over time.
We are Highly Rated
The Affluence Investment Fund has achieved a 5 Star Morningstar Rating for both 5 Years and Overall.
The rating is based on the historical risk-adjusted performance for the Fund.
We have Met our Fund Objectives
| Fund Objective | Achieved | As at 31 March 2020 |
|---|---|---|
| Minimum distribution yield of 5% per annum, paid monthly | ✓ | The Fund currently distributes 5.52 cents per unit per annum, paid monthly. This is equivalent to 5.8% on the current unit price. |
| Total annualised return of at least inflation plus 5% | Since inception in December 2014, the Fund has returned 5.5% pa compared to the return target 7.0% pa. This has been impacted by the extreme market falls in March 2020. | |
| Access to a diversified portfolio | ✓ | The Fund provides exposure to over 30 unlisted funds and more than 25 LIC's. |
| Deliver volatility of returns which is less than 50% of the ASX 200 | ✓ | Since inception in December 2014, the Fund had volatility of returns of 5.5% compared to the ASX 200 of 14.5%. |
Performance has been Strong
Affluence Investment Fund Performance
| To 31 March 2020 | 1 month | 1 year | 3 years | 5 years | Inception | Volatility |
| Income Distributions | 0.4% | 4.9% | 6.1% | 6.6% | 6.3% | |
| Capital Growth | (9.1%) | (8.6%) | (3.9%) | (1.5%) | (0.8%) | |
| Total Return | (8.7%) | (3.7%) | 2.2% | 5.1% | 5.5% | 5.5% |
| Benchmark - Inflation + 5% | 0.6% | 7.8% | 7.1% | 7.0% | 7.0% | |
| Outperformance against Benchmark | (9.3%) | (11.5%) | (4.9%) | (1.9%) | (1.5%) |
Fund Performance has exceeded the Benchmark
Return on $100,000 Investment
We have Outperformed in Negative Share Market Periods
The graph below shows the performance of Affluence Investment Fund in the ten worst months for the ASX200 index since the Fund began. The Fund has performed better than the ASX200 index in all ten worst months, and delivered positive returns in four of them.
We have Outperformed Similar Funds
Performance Comparison
| To 29 February 2020 | APIR | 3 years | 5 years | Volatility (3 year) |
|---|---|---|---|---|
| Affluence Investment Fund | AFX0001AU | 5.5% | 7.3% | 4.1% |
| MLC WS Inflation Plus - Assertive | MLC0667AU | 5.7% | 4.5% | 5.0% |
| BMO Pyrford Global Absolute Return | PER0728AU | 5.5% | 3.7% | 3.9% |
| Perpetual Diversified Real Return W | PER0556AU | 4.6% | 3.7% | 2.9% |
| Schroder Real Return CPI+5% | SCH0047AU | 4.0% | 3.4% | 2.7% |
| MLC WS Inflation Plus - Moderate | MLC0920AU | 3.6% | 3.3% | 2.8% |
| AMP Capital Multi-Asset A | AMP1685AU | 2.9% | 3.3% | 4.3% |
| Russell Inv Multi-Asset Growth Strat A | RIM0098AU | 3.7% | 3.1% | 3.9% |
| PineBridge Global Dynamic | PER0731AU | 3.7% | 2.8% | 7.5% |
| AMP Capital Australian Dynamic Markets A | AMP1932AU | (0.6%) | 0.0% | 6.5% |
| Fulcrum Div Absolute Return Fund | ETL0424AU | 1.5% | N/A | 5.6% |
In the table above we have compared the Affluence Investment Fund against the ten largest funds in its Morningstar category, Multisector Flexible. The Affluence Investment Fund is currently 1 out of 53 funds over 5 years in its Morningstar category.
Volatility refers to the historical standard deviation of returns. A lower number is considered better as it represents more consistent, stable returns.
Risk Disclosure
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
As set out in the product disclosure statement dated 14 March 2017 (“PDS”), key risks include concentration risk, economic and market risk, legal and regulatory risk, manager and key person risk, liquidity risk, leverage risk and currency risk. AFM aims, where possible, to actively manage risks. However, some risks are outside our control.
(c) 2018 FE. All Rights Reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of FE, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by FE, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete, or accurate. FE shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. FE does not guarantee that a fund will perform in line with its FE Crown Fund Rating as it is a reflection of past performance only. Likewise, the FE Crown Fund Rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for making any investment decision.
