AMP Capital Equity Income Generator

Part of AMP Capital's goals-based investing range of funds.

Do you want to maximise your after-tax income in retirement?

We understand that one of the biggest concerns facing many retirees, and people entering retirement, is how they replace their salary when they stop work. And for many of these investors, they will also be concerned that they may outlive their money. For investors who need to rely on an income stream to fund their living expenses, it’s important they consider products that not only provide a regular and reliable income, but that also provide enough capital growth to allow that income to grow with the cost of living.

“For a retiree, fully franked dividends represent the most tax efficient form of income. $1 of fully franked dividends can be worth as much as $1.43 including franking credits.”

Tom Young, Co-portfolio manager

“In a world where income is now scarce Australian Equities stand out as delivering a consistent level of income through-the-cycle.”

Dermot Ryan, Co-portfolio manager
  • Aims to provide regular and reliable income

    Aims to provide an income stream of around 6-8% per annum (before fees) over the long term. 

  • Aims to offset the cost of living

    The fund invests in stocks which we expect will maintain or grow their dividends over time. And as your capital is growing, the income should also grow in line with the cost of living.

  • Line of sight on your income

    The estimated monthly distribution rate is announced six months in advance, providing investors with an indication of the expected income.*

     

  • Focus on tax-effectiveness

    The Fund is suitable for investors on a low marginal tax rate, such as retirees who may benefit from franking credits.

How do we provide regular income plus capital growth?

We analyse and invest in companies that we expect to maintain or grow their dividends over time. We don’t just invest in shares with high dividends as we don’t believe this is a wise long term strategy. Strategies are employed to maximise dividend income from the portfolio we invest in.

 

We also aim to provide a portfolio that has lower volatility than the broader market by investing in high yielding equities which exhibit lower than average risk characteristics.

How does the fund fit into your portfolio?

Investors in retirement have very distinct goals and these can be categorised into essential needs, lifestyle wants and legacy. This fund fits within the essential needs part of a portfolio which covers fundamental items such food, transport and housing.

 

As the Fund aims to maximise after-tax income, this means it is well suited for investors who are looking for an investment solution that covers essential needs such as paying for living expenses. It can be used:

  • As a growth asset allocation tilt within the needs part of a portfolio.
  • In conjunction with the AMP Capital Income Generator which can serve as a core holding; and/or the AMP Capital Corporate Bond Fund which can provide a defensive asset allocation tilt to the portfolio

What are the key risks associated with the fund?

Returns are not guaranteed. Australian shares carry a higher level of short-term risk, particularly if you do not hold your investment for the minimum suggested investment timeframe. Other risks relate to the risk of capital loss, where future returns may differ from past returns. The level of returns may vary, the value of your investment may vary, and there may be the risk of invested capital.

In addition, a key risk associated with the Fund is market risk. The Fund will be affected by any risks associated with the shares listed, or about to be listed, on the Australian Securities Exchange. These include risks in relation to how those shares or other investments perform, how sustainable their earnings are, and other factors that affect value and performance, as well as risks associated with international investments and liquidity risks.

Risks associated with the fund may include share market investment risk, where the value of the Fund’s investment in listed securities may decrease as a result of adverse share market movements.

Other risks may include or be associated with companies, investment management, derivatives, liquidity, property investments, sector, securities lending and small companies. Before choosing to invest in the Fund, investors should read the Product Disclosure Statement and Incorporated Information, and consider factors such as the likely investment return, the risks of investing and their investment timeframe.

APIR code AMP1931AU
Investment objective The Fund aims to provide annual dividend income (including franking credits) above the dividend income of the performance benchmark.* The Fund also aims to provide a total return (including franking credits) in excess of the overall performance benchmark* on a rolling 5 year basis. * Performance benchmark adjusted to include franking credits
Minimum suggested timeframe 5 years
Distribution frequency Monthly
Product inception date 12 Dec 2013
Risk level (1-7) 6. High
Benchmark S&P/ASX 200 Accumulation Index AUD
Product status Open

The Fund's risk level is based on the estimated number of negative annual returns for the Fund over any 20 year period and is not a complete assessment of the risks of investing in the Fund. For instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than an investor may require to meet their objectives. Consequently, before choosing to invest or reinvest in the Fund, you should read the Fund's PDS and incorporated information and consider factors such as the likely investment return, the risks of investing and your investment time frame. Information about the methodology used for calculating the risk level is available here.

Fund Information

APIR code
AMP1931AU
Minimum investment
$10,000

Unit Prices

As at 19 Nov 2018
Buy
0.89700
Sell
0.89342

Performance

As at 31 Oct 2018
1 Month -5.93%
3 Month -6.44%
1 Year -1.81%
3 Year 3.51%
5 Year -
Since inception 4.20%
Past performance is not a reliable indicator of future performance.

Important note: The unit prices displayed in this section are indicative only

If unit prices are not available for today then the latest available prices will be displayed. Unit prices are not calculated on weekends or public holidays.

Our unit price discretion policy states where we may exercise certain discretions in determining the unit price of units on application or withdrawal in each investment option. View and download our Unit Pricing Discretions Policy for the types of discretions that we may exercise, in what circumstances, our policies on how we exercise the discretions and the reasons why we consider our policies are reasonable.

 

AMP Capital funds
NMFM Unit Trust funds

 

Unit prices are provided for your information only and are not guaranteed. They are based on historical data and you should not rely on the above information as the basis for making any investment, financial or other decision as past unit prices are not a reliable indicator of future unit prices.

 

During the time it takes to process an application or redemption application, the unit price may vary and the actual unit prices applying to applications and redemptions may differ from those displayed in this section. Actual unit prices can be confirmed on receipt of a completed application or redemption form.

 

None of AMP Capital Funds Management Limited (ABN 15 159 557 72, AFSL 426455), AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497), National Mutual Funds Management Limited (ABN 32 006 787 720, AFSL 234652), or any company within the AMP Group makes any representation or warranty as to the reliability, completeness or accuracy of the unit price information or accepts any responsibility arising in any way (including by reason of negligence) for errors in or omissions from the unit price information.

The information in this section is not an offer or recommendation of securities or other financial products offered by the AMP Group and is not an invitation to take up securities or other financial products. Investors should consider the relevant PDS available from us for the relevant fund before making any decision regarding the product.

Important notes: Past Performance

Past performance is not a reliable indicator of future performance.

Performance is annualised for periods greater than one year. Total returns are calculated using the unit price which uses the net asset values for the relevant month end. This price may differ from the actual unit price for an investor applying for or redeeming an investment. Actual unit prices will be confirmed following any transaction by an investor. Returns quoted are before tax, after fees and costs, and assume all distributions are reinvested.

APIR code AMP9025AU
Investment objective The Fund aims to provide annual dividend income (including franking credits) above the dividend income of the performance benchmark.* The Fund also aims to provide a total return (including franking credits) in excess of the overall performance benchmark* on a rolling 5 year basis. * Performance benchmark adjusted to include franking credits
Minimum suggested timeframe 5 years
Distribution frequency Monthly
Product inception date 08 Dec 2014
Risk level (1-7) 6. High
Benchmark S&P/ASX 200 Accumulation Index AUD
Product status Open

The Fund's risk level is based on the estimated number of negative annual returns for the Fund over any 20 year period and is not a complete assessment of the risks of investing in the Fund. For instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than an investor may require to meet their objectives. Consequently, before choosing to invest or reinvest in the Fund, you should read the Fund's PDS and incorporated information and consider factors such as the likely investment return, the risks of investing and your investment time frame. Information about the methodology used for calculating the risk level is available here.

mFund Information

Product code
ACA01
Minimum investment
$10,000

Unit Prices

As at 19 Nov 2018
Buy
0.88487
Sell
0.88134

Performance

As at 31 Oct 2018
1 Month -5.91%
3 Month -6.39%
1 Year -1.60%
3 Year 3.72%
5 Year 3.25%
Since inception 4.37%
Past performance is not a reliable indicator of future performance.

Important note: The unit prices displayed in this section are indicative only

If unit prices are not available for today then the latest available prices will be displayed. Unit prices are not calculated on weekends or public holidays.

Our unit price discretion policy states where we may exercise certain discretions in determining the unit price of units on application or withdrawal in each investment option. View and download our Unit Pricing Discretions Policy for the types of discretions that we may exercise, in what circumstances, our policies on how we exercise the discretions and the reasons why we consider our policies are reasonable.

 

AMP Capital funds
NMFM Unit Trust funds

 

Unit prices are provided for your information only and are not guaranteed. They are based on historical data and you should not rely on the above information as the basis for making any investment, financial or other decision as past unit prices are not a reliable indicator of future unit prices.

 

During the time it takes to process an application or redemption application, the unit price may vary and the actual unit prices applying to applications and redemptions may differ from those displayed in this section. Actual unit prices can be confirmed on receipt of a completed application or redemption form.

 

None of AMP Capital Funds Management Limited (ABN 15 159 557 72, AFSL 426455), AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497), National Mutual Funds Management Limited (ABN 32 006 787 720, AFSL 234652), or any company within the AMP Group makes any representation or warranty as to the reliability, completeness or accuracy of the unit price information or accepts any responsibility arising in any way (including by reason of negligence) for errors in or omissions from the unit price information.

The information in this section is not an offer or recommendation of securities or other financial products offered by the AMP Group and is not an invitation to take up securities or other financial products. Investors should consider the relevant PDS available from us for the relevant fund before making any decision regarding the product.

Important notes: Past Performance

Past performance is not a reliable indicator of future performance.

Performance is annualised for periods greater than one year. Total returns are calculated using the unit price which uses the net asset values for the relevant month end. This price may differ from the actual unit price for an investor applying for or redeeming an investment. Actual unit prices will be confirmed following any transaction by an investor. Returns quoted are before tax, after fees and costs, and assume all distributions are reinvested.

Important information:

* Distributions for AMP Capital Australian Income Fund are preannounced six months in advance. It is important to note that the final annualised distribution yield will not be known until the end of the financial year, that the distribution yield estimate is not guaranteed, and that it may change due to market conditions.AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the AMP Capital Australian Equity Income Fund, known as the AMP Capital Equity Income Generator (Fund) and the issuer of the units in the Fund.

To invest in the Fund, investors will need to obtain the current Product Disclosure Statement (PDS) from AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232 497) (AMP Capital). The PDS contains important information about investing in the Fund and it is important that investors read the PDS before making a decision about whether to acquire, or continue to hold or dispose of units in the Fund. Neither AMP Capital, AMPCFM nor any other company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this information. Past performance is not a reliable indicator of future performance. While every care has been taken in the preparation of this information, AMP Capital makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. This content has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of this information, and seek professional advice, having regard to their objectives, financial situation and needs. 

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