For investors approaching, or already in retirement, the first goal is to have a consistent stream of money which supports needs and goals. The Future Cash Flow range is designed and managed to better enable investors in retirement to orderly drawdown on their capital. The Funds deliver known monthly cash flows, adjusted for inflation, until all income and capital is returned to investors.
The Range comprises three individual managed Funds and each provides a different level of cash flow. The Funds can be used standalone or in conjunction with one another or with other funds to deliver a desired cash flow profile.
"Assets will be managed in a way that targets a certain range of time for the cash flows to last, allowing investors to better plan their retirement. This provides a sense of comfort that their assets are being managed for a goal."
Darren Beesley, Senior Portfolio Manager
Greater certainty on cash flow
Future Cash Flow 6 Fund, Series 1
- Provides monthly cash flow of 6 cents per unit per annum, adjusted annually for inflation*
Future Cash Flow 9 Fund, Series 1
- Provides monthly cash flows of 9 cents per unit per annum, adjusted annually for inflation*
Future Cash Flow 12 Fund, Series 1
- Provides monthly cash flows of 12 cents per unit per annum, adjusted annually for inflation*
* Until all income and capital is returned to investors
Tailored cash flow amountsThe Future Cash Flow Funds can be used separately or together, as building blocks, to provide more certain cash flow in retirement.
For example, Future Cash Flow Fund 6 may be used to meet everyday expenses or Future Cash Flow 12 Fund could be used to maximise lifestyles in retirement. Alternatively they can be used together.
Maximising how long cash flow lastsThe Funds invest in a diversified portfolio of growth and defensive assets and the portfolio manager also has the flexibility to adopt risk management strategies, bespoke to each Fund, to prolong the life of the Funds and the number of cash flows.
Guidance on cash flowsFrom inception, each Fund will have an indicative range of the life of the Fund to help investors plan how long they can expect their cash flows to last, based on our modelling and assumptions. In addition, on a quarterly basis investors will receive an updated estimate of the life of the Fund which is our best estimate of the end date of the Fund and final cash flow.
Daily liquidityThese Funds allow daily liquidity which provides flexibility and peace of mind to deal any emergency that may arise.
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.
AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the AMP Capital Future Cash Flow 6 Fund, Series 1, AMP Capital Future Cash Flow 9 Fund, Series 1 and the AMP Capital Future Cash Flow 12 Fund, Series 1 (‘Funds’) and the issuer of the units in the Funds. To invest in this Funds, investors will need to obtain the current Product Disclosure Statements (PDS) available from AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232 497) (AMP Capital). The PDS contains important information about investing in the Funds 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 Funds. None of 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 document. While every care has been taken in the preparation of this document, AMP Capital makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts.