Structured Equity Fund (SEF)

The Structured Equity Fund is designed to provide investors with the opportunity to access an enhanced cash return through a beta transfer strategy that leverages returns from the Australian share market. Although this fund is not risk free, investors are provided a degree of capital protection, should the share market fall.

What is SEF?

SEF combines a portfolio of bank bills with options overlay strategies that leverage the return of the S&P/ASX 200 Accumulation Index. SEF invests in a number of tranches with a term to maturity of 12 months. Each tranche consists of an investment in Bank Bills plus ASX200 call spreads plus ASX200 short puts (or put spreads).

At any point in time there will be a number of tranches within the fund, each with a different risk/return structure. It is the aggregate performance of these tranches that will determine the total return for SEF. By applying this strategy, SEF aims to outperform the UBSA Bank Bill Index by 3% per annum (before fees) over the long term.

AMP Capital has employed techniques that provide investors with a degree of capital protection for each tranche. The options strategies are structured so that even though investors will not necessarily gain the full amount of an increase in the sharemarket, they will receive partial protection against falls in the share market, thus minimising potential losses.

Key Features

• Managed by our experienced Structure Products Team, who currently manages in excess of $6 billion in structured product mandates.
• Aims to achieve returns at least 3% higher than cash (over the long term) due to an exposure to equity market options.
• Exposure to a number of tranches provides diversification and therefore lowers fund volatility over time.
• A degree of capital protection is provided so that investors are not exposed to the full risks associated with share market investing.