Sydney-headquartered AMP Capital has launched the AMP Capital Global Equity Fund, a long-only fund that seeks to deliver double-digit annualised absolute returns across a market cycle, with lower volatility than equity markets.
The AMP Capital Global Equity Fund is the inaugural fund in AMP Capital’s new global equities range.
The fund will focus on absolute risk and return. It will hold between 25 and 35 stocks of companies with strong current or anticipated cash generation.
The strategy will seek tailwinds of thematic drivers and, where possible, environmental, social and governance tailwinds.
Favoured investment themes include changing demographic trends, which will drive major changes in future global patterns of consumption and healthcare, and technology.
David Allen, AMP Capital’s global chief investment officer, Equities, said: “The launch of the AMP Capital Global Equity Fund is a defining moment for AMP Capital. It represents a highly differentiated investment opportunity for clients following years of work by our team and it is also a trailblazer for how we plan to re-position our broader equity fund range over time.
“We have built a global equity capability that stands apart from its peers and is in line with what clients tell us they want: process transparency, absolute capital growth, reduced volatility and downside protection. Importantly, the fund seeks to deliver absolute outcomes as it is benchmark unaware.
“We’ve taken a high-conviction approach, investing in a small number of exceptional companies with outstanding prospects, that have dependable and persistent cash-backed returns on capital. As we are not bound to a benchmark, sector or country, these are names that we think are the best stocks globally and will deliver the performance to meet our clients’ goals.”
It is understood AMP Capital has plans to launch additional global equity funds in the coming years.
AMP Capital managed assets of A$165.40bn (€118.06bn) as of 31 December 2016.