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Want to take advantage of growth and mispriced market opportunities?
While Australian shares continue to offer investors attractive yields compared to term deposits, active management will remain critical in the current environment. The AMP Capital Australian Equity Opportunities Fund has been designed for investors seeking strong capital growth potential over the long term.
The Fund primarily invests in a portfolio of Australian companies listed, or about to be listed, on the Australian Securities Exchange (ASX). The aim of the Fund is to provide investors with strong returns (capital growth and income) over the long term by taking advantage of growth and mispriced market opportunities.
"We focus on picking the the right stocks at the right time in the market cycle. Getting the earnings right and ahead of the market is key to generating strong returns and preserving our customers' capital."
Richard Colquhoun, Senior Portfolio Manager
A fund built with these goals in mind
Provides strong returns over the long-term
The Fund’s unconstrained approach offers the opportunity to capitalise on companies which we believe will either outperform or underperform relative to others.
Minimising risk in falling markets
By holding short positions, the Fund is designed with the aim of minimising potential loss in falling markets. We maintain a clear focus on preserving our investors’ capital through the management of short positions.
Takes advantage of opportunities in the market through active management
By actively managing the Fund, we are able to act on market opportunities as they arise. We take advantage of growth and mispriced market opportunities and maintain a portfolio relevant to the current market environment.
The Fund invests in both long and short positions that are diversified by industry, geographical coverage and sources of earnings. Diversification remains one of the most important principles investing for long term growth.
How does this fund fit into your portfolio?
The fund is designed for investors seeking an an investment which provides the potential for strong capital growth over the long term. It can be used to complement existing solutions in a blended portfolio or it can be used individually. When used with existing solutions, the fund fits within the growth component of an investor’s overall portfolio.
How does the fund add value to investors?
The Fund aims to add value by focusing on the future earnings potential of companies. In essence, we aim to understand whether a company’s earnings are likely to rise or fall in the current and future market environment. While many of our competitors rely on broker forecasts for earnings, our analysts carry out their own research, including face-to-face meetings with management to determine the intrinsic value of a company’s share price. We also draw ideas from our colleagues in global equities, investment strategy, real estate and credit markets. By sharing our knowledge, we gain a deeper insight into the companies in which we invest.
The Fund adopts a long-short investment approach which means we are fully able to express our views on individual stocks. With this approach, we can source profits not only when share prices rise, but also when they fall. If our research indicates a company is valued greater than our analyst’s estimates, we go ‘short’. If we believe a company is undervalued, we go ‘long’. For more information on long-short equity investing, click here.
A dedicated team of analysts conduct detailed research on over 200 stocks across the market, through regular dialogue with company management, their customers, suppliers and competitors to uncover the most compelling investments. Often, these are found in the lesser known names in the market. While many other funds in the market will track the index taking the bulk of their bets on the top 20 stocks, we take significant positions across the market spectrum. This expanded opportunity set enhances the potential to add value for our investors.
What are the risks?
The Fund invests in companies that are listed on the Australian Stock Exchange. This means that the Fund will be affected by any risks associated with these companies, such as how they perform, their strategy, management, how sustainable their earnings are, and other factors that affect the value and performance of a company. Being listed on a stock market also means that the value of the share prices for these companies can move up and down significantly because of market sentiment, world and economic events, and other types of information that can move markets. By short selling, the potential amount of loss to the Fund may be greater than for funds which only buy and hold investments over the long term. Please refer to the fund's Product Disclosure Statement for more information.
Fund Carbon Footprint
Operational emissions come from the operations of a company whereas equity emissions come from the assets owned by a company. This distinction is particularly important in the extractive industries where one company may operate mines or oil and gas reserves for another. It is not always possible to identify equity emissions and in this case the operational emissions of a company is used.
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||To provide total returns (income and capital growth), after costs and before tax, above the Fund's performance benchmark on a rolling 3 year basis.
|Minimum suggested timeframe
||01 March 2012
||A$ 10,000 - Personal Investor/Off-platform Class H
|Risk level (1 - 7)
||S&P/ASX 200 Accumulation Index AUD
The Fund's risk level is based on the estimated number of negative annual returns for the Fund over any 20 year period and is not a complete assessment of the risks of investing in the Fund. For instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than an investor may require to meet their objectives. Consequently, before choosing to invest or reinvest in the Fund, you should read the Fund's PDS and incorporated information and consider factors such as the likely investment return, the risks of investing and your investment time frame. Information about the methodology used for calculating the risk level is available here.
How to invest
The Lonsec Rating (assigned June 2016) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Rating is a “class service” (as defined in the Financial Advisers Act 2008 (NZ)) or is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). In New Zealand it must only be provided to “wholesale clients” (as defined in the Financial Advisers Act 2008 (NZ)). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold AMP Capital product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: www.lonsecresearch.com.au/research-solutions/our-ratings.
AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the Australian Equity Opportunities Fund and the issuer of the units in the Fund. To invest in the Fund, investors will need to obtain the current Product Disclosure Statement (PDS) from AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232 497) (AMP Capital). The PDS contains important information about investing in the Fund and it is important that investors read the PDS before making a decision about whether to acquire, or continue to hold or dispose of units in the Fund. Neither AMP Capital, AMPCFM nor any other company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this information. Past performance is not a reliable indicator of future performance. While every care has been taken in the preparation of this information, AMP Capital makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. This content has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of this information, and seek professional advice, having regard to their objectives, financial situation and needs.