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A cost-effective way to negotiate the ups and downs of the market cycle
We recognise the importance of providing investment outcomes that closely match the needs of our clients; and we understand that we need to deliver this in the most cost-effective way possible. That’s why we developed the AMP Capital Dynamic Markets Fund – a low-cost investment solution which not only aims to provide growth above inflation, but endeavours to smooth out performance over the economic cycle when used as part of a blended portfolio solution.
The Fund adopts a ‘dynamic’ and flexible approach to asset allocation which involves negotiating the ups and downs of the market cycle. Essentially, it aims to buy into underpriced opportunities, and sell out of overpriced situations. It provides particular comfort to investors who seek smoother returns over the long-term.
"Ongoing monitoring of market and macro dynamics and asset class analysis ensures that portfolio allocation decisions can be made quickly in response to changing risk/reward profiles."
Nader Naeimi, Head of Dynamic Markets
"In a world of likely constrained and volatile investment returns, focusing on asset allocation is more important than ever."
Shane Oliver, Head of Investment Strategy and Economics, Chief Economist
A fund built with these goals in mind
Aims to more closely match investors’ financial needs
By seeking to provide a return of 4.5% above inflation rather than outperforming a market index or a peer group, the Fund aims to provide an investment outcome which more closely matches the needs of the investor.
Capture opportunities at various stages of the economic cycle
We adopt an investment approach known as Dynamic Asset Allocation where we negotiate the ups and downs of the market. The aim is to sell away from overpriced situations and buy in to underpriced opportunities.
Potential for an improved risk-return outcome at a lower cost
The Fund provides a cost-effective way to access active asset allocation management. Investment in the Fund may provide an improved risk/return outcome over the investment time horizon when used as part of a blended portfolio solution.
How do we seek to generate growth?
The AMP Capital Dynamic Markets Fund uses active asset allocation to take advantages of opportunities we see arising from market mispricing. The Fund is actively managed in terms of asset allocation and currency hedging, with the flexibility to change the asset class mix and currency hedging level at any time within broad ranges.
The Fund provides investors with diversification by investing across a range of traditional asset classes such as shares, listed property, commodities, fixed income, credit and cash. The underlying asset class exposures within the Fund are achieved by investing in passively managed investments such as index funds* and exchange traded funds (ETFs), and using derivatives.
Dynamic Asset Allocation (DAA) is used to actively adjust the split of investments across asset classes in response to expected market changes. For example, when markets have fallen, the Fund may favour growth assets such as shares, whereas when markets are peaking the Fund may favour more defensive assets such as fixed income and cash.
The illustration below shows how the Fund can be flexible in altering its allocation to growth assets according to investor sentiment, which is one of the main drivers of the DAA process. Conversely, as there are signs of a recovery in share markets, the Fund can increase exposure to growth assets.
*'Index funds' does not apply to the AMP Capital Dynamic Markets Fund (Hedge Fund) ASX code: DMKT
How does this fund fit into your portfolio?
The Fund seeks to provide an improved risk-return outcome over the investment time horizon when used as part of a blended portfolio solution.
What are the risks?
There is no guarantee that the Fund’s asset allocation strategy will provide positive investment performance at all stages of the investment cycle. The Fund invests in securities that are listed on share markets around the world. This means that the Fund will be affected by any risks associated with these securities. This includes how they perform, how sustainable their earnings are, and other factors that affect the value and performance of a security, as well as those associated with international investments. Before choosing to invest in the Fund, you should read the Product Disclosure Statement and Incorporated Information, and consider factors such as the likely investment return, the risks of investment and your investment timeframe.
Risks specific to Active ETFs
- Liquidity – although the units are quoted on the AQUA market of the ASX, there can be no assurance that there will be a liquid market for units, and no assurance that there will be a liquid market for the Fund’s investments.
- ASX trading price – the trading price of units on the ASX may differ from the Net Asset Value (NAV) per unit and the indicative NAV (iNAV).
- ASX trading – in certain circumstances, the ASX may suspend trading of the units of the Fund and in that event unitholders would not be able to buy or sell units of the Fund on the ASX.
- Market making – as the Responsible Entity intends to act as a market maker in the units on behalf of the Fund, the Fund will bear the cost and risk of these market making activities.
||The Fund aims to provide a total return (income and capital growth) before costs and before tax, of 4.5% pa above inflation, the Reserve Bank of Australia inflation rate (Consumer Price Index) - trimmed mean (published on www.rba.gov.au), on a rolling 5 year basis.
||AMP Capital's dynamic asset allocation investment approach aims to achieve growth with smoother returns. It does this by negotiating the ups and downs of the market cycle.
|Minimum suggested timeframe
||23 February 2012
||A$ 10,000 - Personal Investor/Off-platform Class H
|Risk level (1 - 7)
||5. Medium to High
||CPI Trimmed Mean Benchmark + 4.5% in AUD
% change (prev day)
Bid * (delayed)
Offer * (delayed)
iNAV ^^ (18 Dec 4:14PM)
|Net Assets** ($A)
Units Outstanding** (#)
Management Cost^ (% p.a.)
* Data is delayed by at least 20 minutes.
** Estimated as of close of previous trading day.
^ Plus recoverable expenses. Certain additional costs apply. Please refer to the PDS.
^^ iNAV is an indicative net asset value per unit, updated during the ASX trading day for foreign exchange movements in the Fund's portfolio of stocks and for stocks that have live market prices during the day.
||Distribution Unit ($)
^ This is the annual distribution return to the end of the relevant distribution date. The distribution return reflects the contribution to total investment return made by the Fund's distributions. It is calculated as the difference between total Fund return and NAV return. NAV return is the change in the Fund's NAV price. Total return is the NAV return plus reinvestment of all distributions back to the Fund. Past performance not indicative of future performance.
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
||10:00 - 16:00 (AEST)
|INAV IRESS Code
Invest via any full service or online broker.
Use the ASX code to invest:
AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the AMP Capital Dynamic Markets Fund (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.