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
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
