Delivering capital growth and income with less volatility
With an estimated US$57 trillion to be invested in global infrastructure by 20301 AMP Capital expects a broad and growing range of infrastructure investment opportunities over the long term. The AMP Capital Global Infrastructure Securities Fund (Hedged) focuses on providing investors with the benefits of this expected global growth. The Fund focuses on providing a combination of capital growth and income with the option to hedge the Fund’s international investments back into Australian dollars. The Fund also offers an unhedged option.
1 McKinsey Global Institute, January 2013
"Global listed infrastructure is a young asset class with huge growth potential and strong return drivers."Giuseppe Corona, Head of Global Listed Infrastructure
By investing in both developed and emerging markets across a range of sectors, investors can participate in the economic potential of emerging markets while benefiting from the stability of existing infrastructure in developed markets.
At least 90% of each Fund is invested in ‘core and pure’ infrastructure companies at all times. In our opinion, these companies show strong monopolistic characteristics offering more stable cash flows over time.
Assets which have strong monopolistic characteristics, have little sensitivity to GDP or which have long-term contracts or stable regulation attached to them mean they are generally less volatile than other asset classes.
How does this fund fit into your portfolio?
The Funds are designed for investors seeking an investment which provides the potential for sustainable income and capital growth over the long term. They can be used to complement existing solutions in a blended portfolio. When used with existing solutions, the Funds may fit within the growth component of an investor’s overall portfolio.
What's the difference between hedged and unhedged?
With AMP Capital Global Infrastructure Securities Fund (Unhedged) (Unhedged Fund), investors are exposed to fluctuations in the Australian dollar. This can be a good thing if the Australian dollar falls relative to the currency in the country where the investments are held. For example, if you were invested in an unhedged US share fund and the value of the Australian dollar decreased relative to the US dollar, the value of your portfolio would increase. This is because you would receive more for your investment if you converted it back into Australian dollars.
However, foreign exchange can also work the other way around. As the Australian dollar increases in value, the value of an unhedged overseas portfolio would decrease when converted back into Australian dollars.
With AMP Capital Global Infrastructure Securities Fund (Hedged) (Hedged Fund), we use strategies to offset the impact of currency moves. The objective is to ensure the only factor influencing the return from the portfolio is the income and capital gains (or losses) generated by the underlying investments, stripping out the impact of currency movements.
With a fully hedged portfolio, you may be protected from the adverse impact of a rising Australian dollar but forgo the benefit of a falling Australian dollar.
Description of target market for this fund
This product is likely to be appropriate for a consumer seeking capital growth and regular income to be used as a small allocation within a portfolio where the consumer has a medium to long investment timeframe and a high risk/return profile. The fund provides daily access to capital.
Withdrawals are allowed daily. Withdrawals are normally processed within 5 business days.
The Fund may be suitable for a consumer with a higher risk profile who can accept higher potential losses (eg has the ability to bear up to 6 negative returns over a 20-year period (SRM 6)) in order to target a higher return.
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 Funds include or are associated with:
- Share market investments – adverse share market movements could result in capital losses, particularly over the shorter term
- Infrastructure investments – factors affecting direct infrastructure assets (such as a company’s ability to service debt in a rising interest rate environment) may negatively affect the value of the relevant Funds’ investments
- International investments – the relative strength or weakness of the Australian dollar against other currencies will affect the Unhedged Fund’s performance and although the Hedged Fund’s international investments are principally hedged back to Australian dollars, the Hedged Fund could incur losses related to exchange rates or hedging
- Derivatives – losses may be magnified where derivatives are used, and
- Investment management – factors such as changes to the investment team may affect the relevant Fund’s performance.
The ‘Risks of investing’ section of the Incorporated Information incorporated into the Product Disclosure Statement for the relevant Fund provides further information about the risks noted above, as well as information about other investment risks of which you should be aware.
|Investment objective||To provide total returns (income and capital growth) after costs and before tax, above the Fund's performance benchmark (Dow Jones Brookfield Global Infrastructure Index Australian Dollar Hedged) over the long term.|
|Minimum suggested timeframe||5 years|
|Product inception date||02 Jul 2010|
|Risk level (1-7)||6. High|
|Benchmark||Dow Jones Brookfield Global Infrastructure Net Accumulation Index Hedged AUD|
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.
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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.
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.
AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the AMP Capital Global Infrastructure Securities Fund (Hedged) ("the 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. 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. A target market determination has been made in respect of the Fund and is available at www.ampcapital.com/tmd.