Affluence opens LIC fund
Boutique fund manager, Affluence Funds Management, has announced that it has launched a new fund targeting discounted listed investment companies (LIC) listed on the Australian Securities Exchange (ASX).
The Affluence LIC Fund, which would be available to all investors in Australia and New Zealand, has delivered double-digit returns since 2016 and has around half the volatility of the ASX 200, the firm said.
According to Affluence’s chief executive, Daryl Wilson, the market segment was under-researched and had very few institutional investors, despite more than 100 LICs in the market.
“Most investors concentrate their holdings in a few of the largest LIC's,” he said.
"We’ve chosen to make the fund available because of a specific opportunity right now, where we are seeing discounts at levels not seen for years.
"It’s a very unusual situation, where you can access a wide range of very good LIC managers with impressive long-term track records, at discounts averaging around 15%.”
The Affluence LIC Fund said it held a portfolio of over 30 LICs, at an average discount to NTA of 16%.
AUTHOR
Oksana Patron
Recommended for you
Having seen inflows of US$5.6 billion to its fixed income funds in the last quarter, Janus Henderson has closed on a deal with life insurer Guardian to secure funds to boost its product development.
One of Metrics’ four managing partners is to step back from the business next year, having worked at the firm since its inception in 2011.
VanEck’s Bitcoin ETF has amassed $290 million in assets in its first year, but the ETF provider has said financial advisers remain skeptical of the asset.
State Street has rebranded its State Street Global Advisors arm, which has US$4.6 trillion in assets under management, following a series of deals with financial services firms in recent months.
