Helping provide more certainty around retirement cash flow
For investors approaching, or already in retirement, the first goal is to have a consistent stream of money which supports needs and goals. The Future Cash Flow range is designed and managed to better enable investors in retirement to orderly drawdown on their capital. The Funds deliver known monthly cash flows, adjusted for inflation, until all income and capital is returned to investors.
The Range comprises three individual managed Funds and each provides a different level of cash flow. The Funds can be used standalone or in conjunction with one another or with other funds to deliver a desired cash flow profile.
"Assets will be managed in a way that targets a certain range of time for the cash flows to last, allowing investors to better plan their retirement. This provides a sense of comfort that their assets are being managed for a goal."Darren Beesley, Senior Portfolio Manager
Tailored cash flow amounts
The Funds can be used separately or together, as building blocks, to provide more certain cash flow in retirement.
Maximising how long cash flow lasts
The Funds invest in a diversified portfolio of growth and defensive assets. The portfolio manager has the flexibility to adopt risk management strategies to prolong the life of the Funds and the number of cash flows.
Guidance on cash flows
From inception, each Fund will have an indicative range of the life of the Fund to help investors plan how long they can expect their cash flows to last, based on our modelling and assumptions. Investors will also receive updates on a quarterly basis.
These Funds allow daily liquidity which provides flexibility and peace of mind to deal any emergency that may arise.
What are the funds in the range?
Future Cash Flow 6 Fund, Series 1
- Provides monthly cash flow of 6 cents per unit per annum, adjusted annually for inflation*
Future Cash Flow 9 Fund, Series 1
- Provides monthly cash flows of 9 cents per unit per annum, adjusted annually for inflation*
Future Cash Flow 12 Fund, Series 1
- Provides monthly cash flows of 12 cents per unit per annum, adjusted annually for inflation*
* Until all income and capital is returned to investors
How does this fund fit into your portfolio?
The fund may be suitable for those who:
- Are close to retirement and are seeking known monthly cash flows
- Like to be able to plan and budget in retirement to meet lifestyle expenses and goals
- Would like the ability to access their investment in retirement to fund life’s emergencies
What are the risks?
Risks specific to the Future Cash Flow Range may include or be associated with:
- The indicative range and estimate of the life of the Fund are not guaranteed – if investment markets move in an adverse manner that has not been reflected in our modelling and assumptions, this may result in an unanticipated decline in the value of the Fund. A reduction in the value of the Fund may result in a shortening of the life of the Fund.
- Investment approach does not guarantee delivery of the objective of the Fund – the future performance of investment markets is unpredictable and can change unexpectedly. The investment approach is not a methodology that can guarantee the delivery of the objective of the Fund, but rather it provides an investment framework for the management of the Fund.
- Risk management strategies do not guarantee delivery of the objective of the Fund – the Fund utilises asset allocation risk management strategies through diversification and the allocation to more defensive assets in certain market environments. However, there is no guarantee that these risk management strategies will preserve the capital value of the Fund in the manner anticipated.
- Asset allocation – the Fund’s asset allocation strategy does not guarantee positive investment performance at all stages of the investment cycle.
- Credit – including the risk that a credit issuer or counterparty defaults on interest payments, the repayment of capital or both.
- Interest rates – including the risk of capital loss in a rising interest rate environment.
- International investments – including losses related to currency exchange rates, hedging, and changes in the state of the Australian and world economies.
- Legal, regulatory and foreign investments – any change in taxation, corporate or other relevant laws, regulations or rules may adversely affect your investment.
- Liquidity – assets subject to liquidity risk may be difficult to trade and it may take longer for their full value to be realised, and in circumstances where the Fund’s portfolio ceases to be ‘liquid’ for Corporations Act purposes, there may be significant delays or a freeze on withdrawal requests.
- Securities lending – although engaging in securities lending may benefit the Fund by providing increased returns, there is a risk of capital loss.
- Share market investments – the value of the Fund’s investment in listed securities may decrease as a result of adverse share market movements.
AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the AMP Capital Future Cash Flow 6 Fund, Series 1, AMP Capital Future Cash Flow 9 Fund, Series 1 and the AMP Capital Future Cash Flow 12 Fund, Series 1 (‘Funds’) and the issuer of the units in the Funds. To invest in this Funds, investors will need to obtain the current Product Disclosure Statements (PDS) available from AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232 497) (AMP Capital). The PDS contains important information about investing in the Funds 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 Funds. None of 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 document. While every care has been taken in the preparation of this document, AMP Capital makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts.