AMP : Capital Multi-Asset Fund tops A$1 billion FUM

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 meetspecific 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

About AMP Capital
AMP Capital is a specialist investment manager with more than A$160 billion in funds under managementas of 30 June 2016 and more than 250 investment professionals. AMP Capital, which is headquartered in Sydney but has offices in locations such as New York, Chicago, London and Hong Kong, has a heritageand strength in real estate and infrastructure, and specialist expertise in fixed income, equities and multiasset solutions. It is a subsidiary of AMP Limited, which was established in 1849, and is one of Australia's largest retail and corporate pension providers.

AMP Capital is one of the most experienced global infrastructure managers with more than 28 years' experience and having made over 130 infrastructure equity and debt investments globally. AMP Capital was one of the first investors globally to invest in infrastructure when it participated in the financing of the Sydney Harbour Tunnel in 1988. AMP Capital today manages unlisted and listed infrastructure investments in Asia, Europe, North America, Australia and New Zealand.