Affluence reopens LIC fund
Boutique fund manager Affluence Funds Management has reopened its Affluence LIC Fund, which invests only in ASX listed investment companies (LICs), for just one month in December, to take advantage of the “the abundance of opportunities in the LIC market”.
With LICs trading at unusually large discounts to NTA and the sector being under-researched, it presented a significant source of opportunities, according to Affluence’s chief executive, Daryl Wilson.
The company said there were over 100 LICs in the market, with more expected to come.
Wilson also stressed that while the fund was still quite small and it only opened infrequently to new investors.
While it was only available to wholesale investors, retail investors could still access it through the Affluence Investment Fund.
“Contrary to what most people think, one of the best advantages a fund manager can have is to be managing less money, not more,” Wilson said.
“For this reason, we’re carefully managing growth and capacity in this fund. By doing this, we can invest in opportunities that larger fund managers have no chance of executing.”
The Affluence Link Fund offers quarterly distributions, targeting a five per cent income yield, has zero fixed fees (performance fees only) and says it offers easy to read investor reports.
AUTHOR
Oksana Patron
Recommended for you
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
Prime Financial Group has expanded its reach into wealth management by over 3,000 investors with a binding agreement to acquire investment research and fund management business Lincoln Indicators.
