Not for distribution in the US
AMP Capital has won a A$175 million mandate from Nikko Asset Management Australia to manage a concentrated equity portfolio on behalf of its multi-manager team.
The mandate is managed by AMP Capital’s Co-Head of Australian Fundamental Equities, Gian Pandit, and is a tailored investment solution based on the highly successful concentrated equity strategy run by the AMP Capital Fundamental Equities team.
Mr Pandit said: “The portfolio is actively managed under an unconstrained framework to take advantage of all market opportunities as they arise, based on the highest conviction ideas of the team.
“Our philosophy is simple: earnings drive share prices so we try to get the earnings right and ahead of the curve to pre-empt revisions. Our process features a combination of rigorous bottom-up analysis combined with a top-down approach on the markets and we assess the risks from an earnings perspective.”
The concentrated strategy aims to provide investors with strong returns through all market environments by investing in a finite number of companies that exhibit under-appreciated earnings potential.
Mr Pandit said the concentrated equity strategy complements the objective of Nikko Asset Management Australia’s Multi Manager team to create value by sourcing alphas that are lowly-correlated. AMP Capital and Nikko Asset Management Australia have a range of such investment partnerships across their Australian and Asian investment management businesses. The funds awarded by Nikko Asset Management Australia form part of its broader Multi Manager and Portfolio Solutions business, which manages in excess of A$28 billion of assets under management.
Mr Pandit said: “Our distinct approach to delivering alpha generation and capital preservation is something our clients and advisers have found adds value to their overall portfolio structures. We have an unconstrained style and a high conviction approach, rotating between value and growth companies at the right time in the cycle while maintaining a focus on protecting our clients’ money.
“Winning this mandate is an endorsement for our true active management capability and multidimensional approach to research.”
The mandate win is one of the market’s largest in this space during the last two years and follows a strong track record for the fund, which is approaching its three-year anniversary. AMP Capital’s high alpha strategies – equity opportunities and concentrated equity – have grown to A$1.7 billion since inception in late 2011 when Mr Pandit joined the team and launched the strategies.
AMP Capital’s Fundamental Equities team has more than doubled its funds under management during the last three years from A$3.2 billion in 2011 to A$6.8 billion currently.