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Corporate Bond Fund

A diversified investment grade corporate bond portfolio aiming to provide regular income over a fixed term

Regular income and access to your money

Many SMSFs want alternatives to term deposits when interest rates fall. Corporate Bonds can play a role as a defensive asset within your portfolio and offer a regular income stream over a fixed term. With our fund you have access to over 100 investment grade corporate bonds1 that aren’t always easy for smaller investors to buy directly.

With average total returns of 6.70% per annum since inception*, the Fund can be an attractive alternative to term deposits, albeit with a different risk profile.

Past performance is not a reliable indicator of future performance.

*Inception date: 29 September 2009. Performance as at 31 July 2016. Performance figures are calculated using exit prices, are net of management fees, ongoing fees and expenses, assume distributions are reinvested and tax is not deducted.
^Distributions paid are based on the income earned by the Fund and the number of units you hold at the end of the distribution period. You should be aware that although the Fund aims to pay distributions quarterly, the amount of each distribution may vary or no distribution may be payable in a quarter.
1As at 30 October 2015.

Key Stats

Performance is annualised for periods greater than 1 year.

Performance as of:
31 August 2016
1 month
0.59%
3 month
1.29%
1 year
2.97%
2 year
3.07%
3 year
4.14%
5 year
5.58%
Since inception
6.71%
View performance report
Investment value AUD ($'000)
Benchmark
Fund
Past performance is not a reliable indicator of future performance.

Frequently asked questions

What am I buying when I invest in the fund?

When you invest in the Corporate Bond Fund you are investing in a diversified portfolio of typically more than 100 corporate bonds. The Fund focuses on Australian investment grade companies and also has exposure to global bond markets. Investments are diversified across a range of industries such as financials, utilities and telecommunication providers.

Examples of the companies include*;
- Westpac Banking Corporation
- National Australia Bank Ltd
- Commonwealth Bank of Australia
- Bank of America Corp
- Morgan Stanley
- Ausnet Services Holdings
- Credit Suisse / Sydney
- Australian Government
- Downer Group Finance Pty
- Goldman Sachs Group Inc

Will I have access to my money?

A key benefit of the Corporate Bond Fund is ease of access to your money. You can submit a withdrawal request in writing, at any time. A minimum withdrawal amount of $5,000 applies and a balance of $30,000 is generally required to keep your investment open.

We aim to process withdrawal requests within 10 business days of receipt but withdrawal requests may take up to 30 days, or longer in some circumstances, such as if there is insufficient cash available in the Fund to meet withdrawal requests within the 30 day period.

When will income be paid?

The Fund aims to pay income (distributions) monthly. The distributions paid are based on the income of the Fund and the number of units you hold at the end of the distribution period. You should be aware that although the Fund aims to pay distributions monthly, the amount of distribution may vary or no distribution may be payable in a month.

What is the recommended investment timeframe?

Minimum 3 years as per Corporate Bond Fund Product Disclosure Statement.

What risks should I consider?

The Fund has a different risk profile to investing in term deposits. It invests in corporate bonds, which means it is essentially lending money to companies for an agreed time and interest payment. For this reason the key risks associated with investing in the Fund relate to counter-party risk.

There is the risk that the borrower defaults on interest payments, the repayment of capital or both. There is also risk associated with interest rate movements. While capital gains may be earned in a falling interest rate environment, capital losses can occur in a rising interest rate environment.

With international investments the risk includes losses related to currency exchange rates, hedging, and changes in the state of the Australian and world economies.

What is the redemption process?

Withdrawal requests can be submitted by completing the withdrawal request form.

We can accept the request by fax if proceeds are being paid to the nominated bank account on file. For all non-nominated accounts an original signed request must be received by post. Our daily processing cut off time is 1pm to receive the unit price issued for that day, any requests received after this time will receive the unit price of the following day.

Proceeds will generally be made available within 10 business days of your request being received.

What is the funds performance history?

The AMP Capital Corporate Bond Fund has a consistent track record, delivering strong monthly income for investors even during periods of market turbulence. The average total return of the Fund since its inception is 6.70% per year after fees.*

*As at 31 July 2016. Inception date 29 September 2009. Performance is annualised for periods greater than 1 year .Performance figures are calculated using exit prices, are net of management fees, ongoing fees and expenses, assume distributions are reinvested and tax is not deducted.

What are the fees?

When you invest in the Corporate Bond Fund you have access to AMP Capital’s fixed interest investment expertise at a competitive cost.

There is no application fee, no contribution fee, no withdrawal fee and no termination fee. Management costs of 0.77% per year applies and for every $50,000 you have in the Fund you will be charged $385 each year. Full details are outlined in the Product Disclosure Statement.

How much do I need to invest in the fund?

The minimum amount required for an SMSF investor to invest in the Corporate Bond Fund is $10,000. You can make subsequent investments of at least $5,000, and you can elect to have a monthly saving plan with a $500 minimum.

What are the benefits of investing in the Fund?

The Corporate Bond Fund gives you access to diversified portfolio of typically more than 100 corporate bonds. With falling term deposit rates, the Fund offers the potential for higher returns and diversification across industries.

You will also benefit from AMP Capital’s major presence and track record in the Australian fixed income market, including a depth of experience managing corporate bonds.

What is the size of the fund?

The Corporate Bond Fund currently has a strategy size of $1,619.34 million*.

*As at 30 June 2016

A diversified portfolio of investment grade corporate bonds

The Corporate Bond Fund seeks to primarily invest in companies with strong management and balance sheets that display characteristics such as sufficient liquidity and low levels of gearing.

Diversification is achieved mainly through investment in securities across a range of industries such as financials, utilities and telecommunication providers.

The top 10 holdings as at 31 July 2016 included:
4.68%
Westpac Banking Corporation
4.07%
National Australia Bank Ltd
2.90%
Commonwealth Bank of Australia
2.65%
Mirvac Group Finance Ltd
2.28%
Goldman Sachs Group Inc
2.04%
Austnet Services Holdings
2.03%
Morgan Stanley
2.01%
Credit Suisse / Sydney
1.99%
Downer Group Finance Pty Ltd
1.96%
Australian Government

Meet the manager - David Carruthers

David is the Head of Credit and Core, Global Fixed Income at AMP Capital

  • With over 20 years' experience managing fixed income, he has been closely involved in the management of the Corporate Bond Fund since 2001
  • David leads the Global Fixed Income team's credit and core bond fund capabilities and is responsible for macro credit strategy
  • Previously, David was the Senior Portfolio Manager within Credit Markets from 2013 and led the Credit Portfolio Management stream as well as macro credit strategy.

What are the risks?

The Fund has a different risk profile to investing in term deposits. It invests in corporate bonds, which means it is essentially lending money to companies for an agreed time and interest payment. For this reason the key risks associated with investing in the Fund relate to counter-party risk.

There is the risk that the borrower defaults on interest payments, the repayment of capital or both. There is also risk associated with interest rate movements. While capital gains may be earned in a falling interest rate environment, capital losses can occur in a rising interest rate environment.

With international investments the risk includes losses related to currency exchange rates, hedging, and changes in the state of the Australian and world economies.

Invest Now

Prepare for your application

Make sure you have the following details ready:

  • Contact details
  • Drivers licence
  • TFN

Complete the application


To be eligible you must:

  • Be over 18 years of age
  • Submit this application within Australia
  • Read the entire PDS for the relevant fund

AMP's Australian operations are bound by the current Australian privacy legislation which outlines how organisations should manage and use personal information collected and held about their customers. AMP Privacy Policy
AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the Corporate Bond 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.
Issuer and responsible entity: AMP Capital Funds Management Limited ABN 15 159 557 721, AFSL 426455. AMP Capital Funds Management Ltd is a member of the AMP Group which includes AMP Capital Investors Limited ABN 59 001 777 591, ASFL 232497 ("AMP Capital", "we" or "us").
The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned July 2015) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on Zenith's Product Assessment’s http://www.zenithpartners.com.au/RegulatoryGuidelines
The Professional Planner | Zenith Fund Awards are determined using proprietary methodologies. Fund Awards were issued October 9, 2015 and are solely statements of opinion and do not represent recommendations to purchase, hold, or sell any securities or make any other investment decisions. Ratings are subject to change.
[1] Distributions for AMP Capital Corporate Bond Fund are preannounced twelve months in advance. It is important to note that the final annualised distribution yield will not be known until the end of the financial year, that the distribution yield estimate is not guaranteed, and that it may change due to market conditions.

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AMP's Australian operations are bound by the current Australian privacy legislation which outlines how organisations should manage and use personal information collected and held about their customers. AMP Privacy Policy
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