Diversified financial services company Aland Equity Group (ASX: AEG) continued to progress the expansion of its funds management business into the property sector during the three months to end March.
The company worked with its advisors and landowners to finalise a structure for the launch of a new property funds platform, which it sees as a compelling opportunity to drive long-term shareholder value.
During the period, Aland commenced a distribution strategy to accelerate growth in funds under management within the Aland Australian Equities Fund (AAEF) (formerly known as the Equity Story Growth Fund).
This was achieved via an external research rating that broadened the fund’s access to distribution across investment platforms, and saw the start of related investor meetings and engagement activities.
Increased Market Volatility
The AAEF applies CTM methodology—a proprietary blend of fundamental and technical analysis—to achieve strong investment outcomes, with results for the quarter impacted by the conflict in Iran and increased market volatility.
“The unpredictability, uncertainty, and sudden decisions by the conflict’s main actors saw the risks of global growth slowdown, higher inflation, and energy supplies be put into spotlight,” the company said.
“Energy security became the theme with no clear objectives or endgame to suggest things will settle back to normal in the short term.”
“The momentum swings between themes has enabled the fund’s managers to reposition the portfolio to capture the upside on any market recovery, stay defensive, and invest where there is positivity.”
Aland’s long-term strategy is bearing fruit, with cumulative returns since inception sitting at 42.66%—outperforming the benchmark by 22%—and 11.55% per annum annualised returns, compared to 5.84%p.a. for the All Ordinaries Index.
Equity Story Reset
Aland’s Equity Story subscription business underwent a strategic reset to a scalable, low-cost digital subscription model in January.
This resulted in an increase from 800 to 1,200 members during the quarter, on the back of targeted marketing campaigns and revised pricing.
The company expects the new model to continue building a scalable base of recurring revenue to support funds under management and distribution growth across Aland’s equities and property funds platforms.
Aland’s membership revenue for the three months to end March totalled $38,000 (compared to $67,000 in the December quarter), while cash receipts from membership fees totalled $44,000 (compared to $131,000).
