Floating Rate Income Fund

Fund aim

The Fund seeks to provide returns above inflation and cash over the short to medium term. Through exposure to credit securities (e.g. corporate bonds), the Fund endeavours to achieve a higher return than would normally be available through investing in the securities in the UBS Bank Bill Index, whilst seeking to minimise interest rate risk.

Investment objective

We aim to provide a total return, after costs and before tax, higher than the return from the benchmark on a rolling 12 months basis.

Benchmark

UBS Bank Bill Index

Investment style

The Fund invests in a combination of interest rate derivatives and the AMP Capital Australian Corporate Bond Fund. The Fund may also hold cash for liquidity and interest rate management purposes.

• The AMP Capital Australian Corporate Bond Fund will aim to construct a portfolio, which is diversified by industry and issuer.
• Interest rate derivatives will be used to negate the maturity profile of investments in the AMP Capital Australian Corporate Bond Fund and will substitute the maturity profile of the UBS Bank Bill Index. In doing this, we will aim to have an interest rate risk profile close to that of the UBS Bank Bill Index.

Inception date

17 June 2004

Recommended investment timeframe

Minimum 3 years

Risk rating

Low-Medium

Distributions

Quarterly and can be paid in cash or re-invested in the fund.

Minimum investment

A$10 million

Buy/sell spread

Nil

Management expense ratio (MER)

0.3075%