Hi Brent,
The issue comes down to the holdings of AFI as it does with all investment vehicles/fund managers. This $9.57bn company has underperformed its benchmark (the ASX300 Accum Index) during most timeframes.
This listed investment company (LIC) has a reputation as a low cost, diversified and conservatively managed portfolio that pays out regular fully franked dividends, though, performance remains the key to any manager, AFI is no different. Total returns over a 10 year period shows a total under performance of 25% over that time period. On a shorter-term view (1-year), AFI has booked a total return (inclusive of dividends) of 12.43%, which over ~10% below the market, as shown below.
- We like to eat our own cooking, so our money is invested in the MM Portfolios, including the Active Growth and Active Income Portfolios.