Not for release or distribution in the US
AMP Capital has launched its new Global Equity Fund, which aims to deliver double-digit annualised absolute returns across a market cycle, with lower volatility than equity markets.
The AMP Capital Global Equity Fund is long-only and is the inaugural fund in AMP Capital's new global equities range.
The fund will focus on absolute risk and return, not benchmarks, and invest in a concentrated portfolio of between 25 and 35 exceptional companies with strong current or anticipated cash generation. The investment time horizon will be long term, leading to low portfolio turnover.
The fund will seek tailwinds of thematic drivers and, where possible, environmental, social and governance tailwinds. Favoured investment themes include changing demographic trends, which will drive major changes in future global patterns of consumption and healthcare, and technology.
David Allen, AMP Capital's Global Chief Investment Officer, Equities, said: "The launch of the AMP Capital Global Equity Fund is a defining moment for AMP Capital. It represents a highly differentiated investment opportunity for clients following years of work by our team and it is also a trailblazer for how we plan to re-position our broader equity fund range over time. We have built a global equity capability that stands apart from its peers and is in line with what clients tell us they want: process transparency, absolute capital growth, reduced volatility and downside protection. Importantly, the fund seeks to deliver absolute outcomes as it is benchmark unaware.
"We've taken a high-conviction approach, investing in a small number of exceptional companies with outstanding prospects, that have dependable and persistent cash-backed returns on capital. As we are not bound to a benchmark, sector or country, these are names that we think are the best stocks globally and will deliver the performance to meet our clients' goals."
Mr Allen said AMP Capital's new global equity fund is underpinned by a strong and collaborative team culture.
"We believe our star team approach – rather than that of a star portfolio manager – leads to better and more sustainable outcomes for clients by managing individual behavioural biases and reducing key person risk," Mr Allen said.
The investment team is based in London and Sydney, drawing on the strength of the investment professionals in both regions and enabling coverage across time zones.
AMP Capital intends to launch additional global equity products in the coming years.
About AMP Capital
AMP Capital is a specialist investment manager with more than A$165 billion in funds under management as at 31 December 2016 and more than 250 investment professionals. AMP Capital has a heritage and strength in real estate and infrastructure, and specialist expertise in fixed income, equities and multi-asset 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.