Enhanced Yield Fund

Fund at a glance

Fund aim

The Fund seeks to generate an attractive and consistent level of income through investing in high-yielding debt instruments (both listed and unlisted).

The Fund normally invests in a combination of structured high yield debt, corporate debt, hybrid, cash and cash-like securities. Structured high yield debt and hybrid securities may include, but are not restricted to government bonds, corporate bonds, high yielding securities, mortgage and asset backed securities, converting preference shares and infrastructure debt.

Investment objective

Our aim is to provide a high level of income, through a regular, distributable yield (after costs and before tax). In seeking to achieve this it may be necessary to return capital to unit holders from time to time.

Investment Style

• Structured high yield debt – The fund obtains its exposure to this sector by investing in the AMP Capital Structured High Yield Fund - which invests in a diversified portfolio of high-yielding debt assets which are spread across a range of industry sectors.
• Hybrid securities including corporate debt – Our investment process adopts a ‘top down’ approach of economic and market conditions to determine duration and appropriate industry weightings. We also undertake a ‘bottom up’ analysis of individual stocks to determine our exposure to different grades of credit, based on their relative creditworthiness.

Benchmark

UBS Composite Bond Index

Inception date

12 May 2003

Recommended investment timeframe

Minimum 3-5 years

Risk Rating

Low-Medium

Distributions

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

Hedging

The Fund may short sell shares with the aim of hedging the exposure to hybrid securities held by the Fund.

Minimum investment

A$500,000

Buy/sell spread

Nil

MER

0.6648%