Identifying and investing in opportunities, not just markets
With markets continually changing and evolving it can be difficult to know when and where the opportunities lie - but we do know that research has shown that asset allocation is the main driver of returns. A strategy that regularly adjusts its allocation across markets and asset classes can help ensure investors have the appropriate exposure at the most opportune time.
"Ongoing monitoring of market and macro dynamics and asset class analysis ensures that portfolio allocation decisions can be made quickly in response to changing risk/reward profiles."Nader Naeimi, Head of Dynamic Markets
By seeking to provide a return of 4.5% above inflation* rather than outperforming a market index or a peer group, the Fund aims to provide an investment outcome which more closely matches the needs of the investor.
The Fund actively adjusts the split of investments across asset classes where we have the strongest conviction based on our dynamic asset allocation investment process and in response to expected market changes.
We pick markets from around the world - not individual stocks - and we don't have a bias towards a specific asset class.
Implementing our views through ETFs and futures helps keep the portfolio liquid and low cost
*Before costs and before tax on a rolling 5 year basis. Inflation means the Reserve Bank of Australia inflation rate (Consumer Price Index) - trimmed mean (published on rba.gov.au)
How do we seek to generate growth?
The AMP Capital Dynamic Markets Fund uses active asset allocation to take advantages of opportunities we see arising from market mispricing. The Fund is actively managed in terms of asset allocation and currency hedging, with the flexibility to change the asset class mix and currency hedging level at any time within broad ranges.
The Fund provides investors with diversification by investing across a range of traditional asset classes such as shares, listed property, commodities, fixed income, credit and cash. The underlying asset class exposures within the Fund are achieved by investing in passively managed investments such as index funds* and exchange traded funds (ETFs), and using derivatives.
Dynamic Asset Allocation (DAA) is used to actively adjust the split of investments across asset classes in response to expected market changes. For example, when markets have fallen, the Fund may favour growth assets such as shares, whereas when markets are peaking the Fund may favour more defensive assets such as fixed income and cash.
How does this fund fit into your portfolio?
The Fund seeks to provide an improved risk-return outcome over the investment time horizon when used as part of a blended portfolio solution.
What are the risks?
There is no guarantee that the Fund’s asset allocation strategy will provide positive investment performance at all stages of the investment cycle. The Fund invests in securities that are listed on share markets around the world. This means that the Fund will be affected by any risks associated with these securities. This includes how they perform, how sustainable their earnings are, and other factors that affect the value and performance of a security, as well as those associated with international investments. Before choosing to invest in the Fund, you should read the Product Disclosure Statement and Incorporated Information, and consider factors such as the likely investment return, the risks of investment and your investment timeframe.
|Investment objective||The Fund's investment objective is to provide excess returns (before fees & tax) above the performance benchmark over a rolling 5 year period.The performance benchmark of the Fund is the RBA Trimmed Mean CPI (annual percentage change) + 450 bp before fees.|
|Minimum suggested timeframe||5 years|
|Product inception date||23 Feb 2012|
|Risk level (1-7)||5. Medium to High|
|Benchmark||CPI Trimmed Mean Benchmark + 4.5% in 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.
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 Dynamic Markets Fund ("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.