AMP Capital Corporate Bond Fund

Regular income stream and defensive characteristics

We believe that success is about understanding our clients’ needs, and delivering to those needs. We recognise there’s been a fundamental change in markets over the last few years. Because of this, the ability to preserve capital and provide a steady income stream has become a more important goal than ever for many investors, particularly those who are entering or already in retirement. We believe that our ‘true to label’ corporate bond fund seeks to provide a more secure future for those investors who are looking for capital stability and a regular income from their investments.

“Our intensive stock selection and risk management approach helps enable us to deliver on our clients’ income needs and help preserve their capital through the cycle.”

Sonia Baillie, Head of Credit
  • Regular and reliable income

    The fund aims to provide regular monthly income by investing in an actively managed portfolio of high quality credit securities.

  • Line of sight on income

    The estimated monthly distribution rate is announced 6 months in advance, providing investors with an indication of the expected income.*

  • Reduce portfolio volatility

    We predominantly invest in high quality corporate bonds issued in the Australian bond market and lend to companies that are in stable industries, such as financials, utilities and telecommunications.

  • Our size is our strength

    AMP Capital’s size and scale ultimately helps our clients. Priority access to bond issuance and negotiating power on terms means we’re able to mitigate some risks within the fund.

How do we aim to provide regular, reliable income?

  • We actively manage the bonds (generally over 100 in the portfolio at one time) to minimise any risk associated with changes in interest rates. Not all fixed income funds operate this way.
  • We have the flexibility to capitalise on income opportunities in the global bond market.
  • We predominantly invest in high quality corporate bonds issued in the Australian bond market and lend to companies that are in stable industries, such as financials, utilities and telecommunications.

How does this 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 then essential needs part of a portfolio which covers fundamental items such as food, transport and housing.

 

As the fund aims to generate a regular, reliable income, this means it is well suited for investors who are looking for an investment solution that covers essential needs such as paying for food or housing. It can be used as:

  • A defensive asset allocation tilt within the essential needs part of a portfolio.

What are the risks?

All investments involve risk and you should consider investment risks before making an investment decision. The key risks of investing in the Fund include or are associated with:


Credit Risk - The fund invests in corporate bonds, which means it essentially lends money to companies for an agreed time and interest payment. For this reason there is counter-party risk, the risk that the borrower defaults on interest payments, the repayment of capital or both.


Interest rate risk – while capital gains may be earned in a falling interest rate environment, capital losses can occur in a rising interest rate environment.


International investments - the risk includes losses related to currency exchange rates, hedging, and changes in the state of the Australian and world economies


The ‘Risks of investing’ section of the Product Disclosure Statement and Incorporated Information for this Fund provides further information about the risks noted above, as well as information about other investment risks of which you should be aware.

APIR code AMP1285AU
Investment objective Primary: The AMP Capital Corporate Bond Fund aims to deliver regular monthly income, whilst seeking to provide capital stability to investors over the medium term. Secondary: To provide total returns (primarily income with some capital growth) above the Fund's benchmark over a rolling 3-year basis.
Minimum suggested timeframe 3 years
Distribution frequency Monthly
Product inception date 29 Sep 2009
Minimum investment 10,000
Risk level (1-7) 4. Medium
Benchmark AMP Capital Corporate Bond Fund Composite Index
Product status Open

* Past performance of this Fund is reported using the UBS Composite Bond Index (All Maturities) up to 28 February 2011, and the UBS Credit Index 0+ thereafter. Note that the UBS Credit Index 0+ was renamed to the Bloomberg AusBond Credit 0+ Yr Index as at 1 October 2014. Note that the benchmark has changed from the Bloomberg AusBond Credit 0+ Yr Index to Bloomberg AusBond Bank Bill Index as at 29 February 2016.

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.

Unit Prices

As at 12 Dec 2018
Buy
0.98308
Sell
0.97915

Performance

As at 30 Nov 2018
1 Month -0.07%
3 Month 0.32%
1 Year 1.96%
3 Year 2.99%
5 Year 3.40%
Since inception 5.69%
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 AMP9024AU
Investment objective Primary: The AMP Capital Corporate Bond Fund aims to deliver regular monthly income, whilst seeking to provide capital stability to investors over the medium term. Secondary: To provide total returns (primarily income with some capital growth) above the Fund's benchmark over a rolling 3-year basis.
Minimum suggested timeframe 3 years
Distribution frequency Monthly
Product inception date 23 Jun 2009
Minimum investment 10,000
Risk level (1-7) 4. Medium
Benchmark AMP Capital Corporate Bond Fund Composite Index
Product status Open

* Past performance of this Fund is reported using the UBS Composite Bond Index (All Maturities) up to 28 February 2011, and the UBS Credit Index 0+ thereafter. Note that the UBS Credit Index 0+ was renamed to the Bloomberg AusBond Credit 0+ Yr Index as at 1 October 2014. Note that the benchmark has changed from the Bloomberg AusBond Credit 0+ Yr Index to Bloomberg AusBond Bank Bill Index as at 29 February 2016.

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

Fund code
ACA02
Minimum investment
$10,000

Unit Prices

As at 12 Dec 2018
Buy
0.96386
Sell
0.96001

Performance

As at 30 Nov 2018
1 Month -0.06%
3 Month 0.36%
1 Year 2.11%
3 Year 3.15%
5 Year 3.56%
Since inception 6.21%
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:

AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the AMP Capital Corporate Bond 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. 

* Distributions for AMP Capital Corporate Bond 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.

The Lonsec Rating (assigned May 2018) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Rating is a “class service” (as defined in the Financial Advisers Act 2008 (NZ)) or is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). In New Zealand it must only be provided to “wholesale clients” (as defined in the Financial Advisers Act 2008 (NZ)). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold AMP Capital product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.  For further information regarding Lonsec’s Ratings methodology, refer to www.lonsecresearch.com.au/research-solutions/our-ratings

The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned June 2017) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on Zenith's Product Assessment’s at http://www.zenithpartners.com.au/RegulatoryGuidelines

The Professional Planner | Zenith Fund Awards are determined using proprietary methodologies. Fund Awards were issued October 9, 2015 and are solely statements of opinion and do not represent recommendations to purchase, hold, or sell any securities or make any other investment decisions. Ratings are subject to change.

The Professional Planner | Zenith Fund Awards are determined using proprietary methodologies. Fund Awards were issued October 7, 2016 and are solely statements of opinion and do not represent recommendations to purchase, hold or sell any securities or make any other investment decisions. Fund Awards are current for 12 months from the date awarded and are subject to change at any time. Fund Awards for previous years are referenced for historical purposes only.

Cookies & Tracking on our website.  We use basic cookies to help remember selections you make on the website and to make the site work. We also use non-essential cookies, website tracking as well as analytics - so we can amongst other things, show which of our products and services may be relevant for you, and tailor marketing (if you have agreed to this). More details about our use of cookies and website analytics can be found here
You can turn off cookie collection and/or website tracking by updating your cookies & tracking preferences in your browser settings.