Not for release or distribution in the US
AMP Capital’s Multi-Asset Fund has exceeded A$1 billion in funds under management (FUM), with customer and adviser interest in the fund increasing significantly during the last 12 months amid market volatility.
The fund was launched in 2010 and aims to grow an investor’s wealth steadily over time by targeting a return objective of 5.5 per cent above inflation. The fund invests in a wide range of predominantly liquid assets and strategies designed to exceed the return objective with the least risk of loss possible.
AMP Capital Multi-Asset Fund Senior Portfolio Manager Matthew Hopkins said: “The Multi-Asset Fund is managed using three key principles, which combine to create the most effective way to minimise risk. The three principles are dynamic asset allocation, a process designed to adapt the fund’s asset allocation through market cycles; diversity, with an emphasis on differentiated sources of return including absolute return strategies to maximise diversification; and tail hedging, where strategies are employed to soften the impact of major market falls. The processes are working effectively and the fund has performed well during periods of market volatility.”
The Multi-Asset Fund is designed for those who want to grow their capital steadily over time. It is particularly relevant to retirees, who don’t have the capacity to experience a sharp decline in their wealth yet still need to grow their capital. Similarly, the fund’s lower volatility makes it well suited to investors focused on building wealth whether that be for specific lifestyle goals such as annual holidays or to help fund future retirement needs.
It sits within AMP Capital’s goals-based range of products. These funds have been designed to meet specific client goals rather than outperform a benchmark.
Mr Hopkins said: “FUM has increased significantly during the last 12 months as a result of increased communication with investors and improved awareness of the benefits of multi-asset investing. Markets have also been more volatile during the last two years, which has led to many advisers and customers looking for investments that are better able to navigate the market’s ups and downs. The Multi-Asset Fund has been a good home for that capital.”
Mr Hopkins identified two key investment themes as “lower for longer”, both in terms of inflation and interest rates, and volatility.
“We expect higher volatility, due to uncertainty on potential US rate rises, political uncertainty and fluctuating levels of liquidity. The tailwinds that had supported US earnings and valuations in particular, including lower wages, low interest rates and a weaker US dollar, are increasingly likely to become headwinds. However, volatility also creates opportunity and the fund retains high liquidity to be able to take advantage of market dislocations,” he said.
For more information on the AMP Capital Multi Asset Fund, visit ampcapital.com.au/goals/multi-asset
This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.