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AMP Capital Global Infrastructure Bond Strategy

Seeking to offer investors diversification and strong risk adjusted returns

Invests in US dollar denominated bonds issued by infrastructure-related companies from around the world, that provide essential services necessary for people’s daily lives in the utility, communication, energy and transportation sectors.

Global strength in managing infrastructure bonds

AMP Capital's Global Fixed Income team's experience spans over eight years managing global infrastructure bonds backed by internationally awarded team members located in Sydney, Chicago and London. Our belief is that the characteristics of global markets require local expertise. Consequently, our team of on-the-ground credit analysts operate across key sectors, adopting a single integrated approach.

  • Targeting strong risk adjusted returns
    Targeting strong risk adjusted returns

    Seeks to deliver higher returns with defensive characteristics in stressed markets.

  • Portfolio diversification
    Portfolio diversification

    Seeks to deliver higher returns with defensive characteristics in stressed markets.

  • Reliable long-term returns
    Reliable long-term returns

    Generally lower default rate and higher recovery driven by low cashflow volatility.

  • Seeking higher yields
    Seeking higher yields

    Infrastructure bonds can be higher yielding compared with broader corporate bond indices given long dated nature of infrastructure asset base.

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 strategy include or are associated with:

Credit Risk - The strategy 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

Investment approach

Our investment approach is of a fundamental credit manager which generates alpha primarily through stock selection of what we believe are improving and robust credit stories, and sector tilt / rotation to express a preference for one industry over another.

 

In both above scenarios, relative valuation of securities within an industry and of industries themselves is the foundation of our investment style and alpha generation. Duration and curve management is an optional lever and dependent on each mandate.

 Benchmark Customised market weighted average of the Barclays Capital US Aggregate Corporates sectors of Utility, Communications, Energy and Transportation
Active return levers Sector selection / stock selection / interest rate management
Key guidelines
  • Duration limit +/- 2 years relative to the benchmark
  • Securities must be rated Investment Grade
  • 5% maximum exposure to single issuer relative to the benchmark

Please note that this strategy is currently only available as a separately managed mandate to wholesale clients. If you are interested in this strategy, please contact us.

Important Information:

While every care has been taken in the preparation of this information contained in this website, neither AMP Capital Investors Limited (ABN 59 001 777 591)(AFSL 232497) nor any member of the AMP Group make any 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 only, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of the information on this website, and seek professional advice, having regard to their objectives, financial situation and needs. This content is not intended for distribution or use in any jurisdiction where it would be contrary to applicable laws, regulations or directives and does not constitute a recommendation, offer, solicitation or invitation to invest.

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