Australian Investors Podcast Step by step guide to selecting a managed fund
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May 19, 2025 Daryl Wilson, from Affluence Funds Management, shares insights into effectively selecting managed funds and constructing portfolios. He breaks down the nuances of strategic and tactical asset allocation, discussing when to adapt exposure based on market conditions. Daryl emphasizes the importance of aligning fund managers' interests with investors’ goals while recognizing value versus growth styles. He also offers a contrarian perspective on investing in small-cap opportunities amidst market shifts, making the complex world of fund management accessible and engaging.
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Perth REIT Purchase Compared To GFC
- Daryl describes buying REIT GDI on a 9–10% yield from Perth office buildings as a low-risk wait for returns.
- He compares current property pricing to levels seen after the Global Financial Crisis.
Large vs Small Cap Valuation Split
- Current market shows a stark valuation divergence: large caps expensive, small and micro caps extremely cheap.
- Cheap small-cap names can deliver high returns with modest improvements because expectations are already low.
Amico Example Shows Small-Cap Edge
- Daryl uses Amico as an example of a small-cap mining services stock trading on a PE of 7–8.
- He argues such low valuations allow double-digit returns with only modest earnings growth or occasional takeover upside.