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AMP Capital launches new fund and is awarded $30 million mandate
AMP Capital has launched a new dynamic asset allocation fund, and has been awarded a $30 million mandate from Western Australian Local Government Superannuation Plan (WA LGSP).
According to AMP Capital, WA LGSP has over $1.5 billion in assets, and the industry fund's investment will add to the $53 billion in funds under management by AMP Capital's Multi Asset Group. The mandate follows the merger of AXA/AMP Financial Services and AMP Capital in early August.
The funds manager stated that the Dynamic Asset Allocation Fund is designed to provide investors with long-term growth by investing in stocks, managed funds, REITs, bonds, derivatives and cash. Its mix of growth and defensive asset classes over a medium term investment period will stabilise investor risk, AMP Capital stated.
"With economic and investment cycles becoming shorter and more extreme as a result of continuing volatility, a more flexible approach to asset allocation can provide unique opportunities to generate returns across a range of economic conditions," said AMP Capital senior investment strategist and portfolio manager Nader Naeimi.
With the ability to capture opportunities at various stages of the economic cycle, Naeimi said the new fund has greater flexibility to change according to market outlook compared to a standard balanced or diversified portfolio, which will often be peer-constrained.
He also said that while the new fund offering is currently targeted at institutional investors, there is the potential at expanding the offering to retail investors as well. In the current financial landscape of market volatility and low returns, asset allocation will become a major contributor for return, he added.
In relation to the mandate, AMP Capital stated that WA LGSP has over $1.5 billion in assets, and the industry fund's investment will add to the $53 billion in funds under management by AMP Capital's Multi Asset Group. The mandate follows the merger of AXA/AMP Financial Services and AMP Capital in early August.
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