Patricia Montague

AMP’s award winning all-in-one super and retirement product, AMP Flexible Super, has notched up over $10 billion in assets under management (AUM), capping off a remarkable period of growth since its launch in 2010.

AMP’s Director of Contemporary Wealth Management Patricia Montague said the $10 billion milestone was testament to the products flexible structure which made it suitable to individuals regardless of their superannuation balance or stage of life.

“The success of AMP Flexible Super since its launch in 2010 has been phenomenal, and we are continuing to see strong growth with customer numbers increasing by more than 26 per cent, up from 172, 000 customers at FY 12 to 216, 000 at the end of October.

“The appeal of AMP Flexible Super is that for customers, from their first job, to having a family and through to retirement, it provides customers with one account for life at a low cost.

“AMP Flexible Super keeps up with customers changing needs as they move through different stages of their life, offering a single entry-level low cost option through to a more sophisticated option with an extensive investment menu.

“We know from our customers they want that sense of control with their finances, and AMP Flexible Super offers this, allowing customers to log on to My Portfolio at home or at work at a time convenient to them to view their super balance, insurance cover, check transactions and contributions and manage their account in line with their attitude to risk,” said Ms Montague.

Underpinning the success of AMP Flexible Super, in the last year it has picked up a suite of awards, including a five star rating in the recent CANSTAR ratings for the third year in a row, Chant West 5 apples ratings and winning the Selecting Super Personal Product of the Year Premium Choice award.

AMP Flexible Super was launched in 2010 as part of changes to streamline AMP’s superannuation offering.

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USD consistently ranking as one of top three most actively traded ETFs

BetaShares passes $120 million in AUM three months after initial product launch

BetaShares Capital Limited (BetaShares) has announced that its US dollar exchange traded fund (ASX Code: USD) has quadrupled in size in the last month reaching $50 million in assets under management. The strong demand for this product has also resulted in BetaShares reaching another milestone, surpassing $120 million in AUM in just three months post the launch of its initial products.

Listed on 1 February 2011, BetaShares U.S. Dollar ETF tracks the performance of the US dollar (US$) relative to the Australian dollar (A$) using a simple, transparent and highly cost-effective structure backed by US dollars held in a bank account with JP Morgan Chase Bank.

Drew Corbett, Head of Investment Strategy & Distribution at BetaShares said the demand for the U.S. Dollar ETF has exceeded expectations and has consistently ranked as one of the top three most traded ETFs on the Australian Securities Exchange.

“We’re continuing to see strong demand from investors looking to back their view on the US$, particularly in light of the historically high levels of the A$ versus the US$ at present” he said.

Stephen Jani, Head of FX Sales at JP Morgan Chase Bank, said investor motives vary: “There are several reasons why investors want exposure to the US$ including participating in a potential US economic recovery, hedging future cross border business obligations and diversifying portfolio exposure. Whatever the reason, investor demand for the US$ is strong as evidenced by the success of the BetaShares product and growth in funds under management,” Mr Jani said.

The strong flows in the U.S Dollar ETF have also resulted in BetaShares reaching over $120 million in AUM since listing its initial products in December 2010.

“BetaShares was set up to address product gaps in the Australian ETF market and based on the strong demand of our ETFs to date, we believe we’re well on the way to achieving that goal,” Mr Corbett said.

“When you look around at ETF markets globally, there is always a strong local player tailoring solutions for the local investor. Reaching this milestone confirms BetaShares as that local provider and we look forward to innovating and delivering further ETF options for Australian investors,” he concluded.

Further information can be found at www.betashares.com.au and the ASX website.

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Since its launch in May 2010, the Russell High Dividend Australian Shares ETF (ASX code RDV) has grown faster by assets under management than any other ETF launched in Australia, reaching $142 million in the first nine months, Russell Investments announced today.

RDV has experienced significant demand from investors hungry for income, particularly from the SMSF sector. Since launch, RDV’s assets under management have grown at an average of around 35% each month.

RDV is based on a specially formulated index, the Russell Australia High Dividend Index, which seeks to deliver a dividend stream 1% higher than the broader market from a portfolio of around 50 Australian blue chip shares. The Russell index has a bias towards those companies that have a high but sustainable expected dividend yield and also demonstrate a history of paying dividends; dividend growth and consistent earnings.

“We developed RDV with SMSFs in mind so it’s pleasing to see such strong demand from these investors who love their share investing but also want sustainable income without sacrificing growth opportunities,” said Amanda Skelly, director Australia ETF business at Russell Investments. “ETFs are a good tool for SMSFs to diversify their portfolios and can be used as a complement to their own stock picks,” she added.

Ms Skelly said Russell has also seen growing institutional take up, particularly among investors with an income focus, or who are looking for alternative ways to manage short-medium term cash. Russell is planning to launch a number of new products this year with a focus on this growing institutional interest.  “We think there are numerous ways institutions can use ETFs, including portfolio tilting and as a plug for an active manager,” said Ms Skelly.

“We are focused on creating ETFs that deliver a specific, targeted exposure and we are working on a number this year, including one we plan to release shortly, which we hope will replicate our success with RDV,” Ms Skelly concluded.

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BetaShares Capital Limited (BetaShares) today announced its newly listed US dollar exchange traded fund (ASX: USD) was one of the top 10 most traded ETFs on the Australian Securities Exchange in its first two weeks of trading with assets under management doubling in the second week of trading.

Listed on 1 February 2011, BetaShares US Dollar ETF tracks the performance of the US dollar (US$) relative to the Australian dollar (A$) using a simple, transparent and highly cost-effective structure backed by US dollars held in a bank account with JP Morgan Chase Bank.

Drew Corbett, Head of Investment Strategy & Distribution at BetaShares said the average trade size of $15,000 indicates strong retail appetite for foreign exchange investment opportunities that were previously unavailable to them.

“Exorbitant fees and poor exchange rates in foreign currency bank accounts mean retail investors have been effectively shut out of the foreign exchange markets up until now. Heavy trading by retail investors in the USD ETF suggests a high level of pent up demand for cost effective and simple foreign exchange investment opportunities,” Mr Corbett said.

“In addition, we are finding that there are a significant number of investors who are investing in this product as a simple way to get exposure to the potential recovery of the U.S. economy”, he continued.

The launch of the USD ETF comes at a time of historic strength for the Aussie dollar, which is currently trading at about 40% above its long run average value. The ETF enables investors to capitalise on any potential weakening in the A$ relative to the US$. For example, if the US$ appreciates 10% against the A$ (i.e. if the A$ falls in value), the price of the ETF should go up 10% too.

This exposure comes at a fraction of the cost of current mechanisms available to most investors. Investing A$10,000 in a US dollar bank account can cost an individual up to $700 over a six month period due to fees, costs and poor exchange rates. The superior rates provided by BetaShares mean the same investment in its ETF would cost around A$70.

BetaShares has also reported strong interest from small to medium business owners which have large US dollar capital expenditures planned in the future and are looking to hedge against a fall in the Australian dollar.

The US Dollar ETF is the third ETF listed by BetaShares after the Resources Sector ETF (ASX: QRE) and Financial Sector ETF (ASX: QFN) listed on the ASX in mid December. The product launch is further evidence of BetaShares’ commitment to provide Australian investors with ETFs tailored to the Australian market.

Further information can be found at www.betashares.com.au and www.asx.com.au.

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BetaShares Capital Limited (BetaShares) today announced its initial two ETFs have reached more than $70 million in assets under management in their first month of trading, making it one of the most successful ETF debuts on the Australian Securities Exchange. BetaShares intends to add to its product offering over 2011, with Australia’s first currency ETF on track for launch in the coming weeks.

Listed on 15 December 2010, BetaShares two initial ETFs are as follows:

• BetaShares Financials Sector ETF (ASX Code: QFN) – tracks the performance of the S&P/ASX 200 Financials Index (excluding Property Trusts)
• BetaShares Resources Sector ETF (ASX Code: QRE) – tracks the performance of the S&P/ASX 200 Resources Index

Global ETF veteran and BetaShares Head of Investment Strategy & Distribution Drew Corbett said the successful launch highlights strong ETF investor appetite.

“Our debut surpassed expectations and confirms that the Australian market has been starved of real choice in quality home grown products from a strong local provider, creating significant latent demand that BetaShares is ready to fill,” said Mr Corbett. “In addition, we have received strongly positive feedback from our investors on the tight trading spreads and liquidity of our products on the Exchange,” he continued.

As the largest Australian specialist ETF provider, BetaShares is committed to providing investors with a wide choice in ETF products with plans to substantially add to its range of ETF products in the coming year, including Australia’s first US Currency ETF in early 2011.

Australian ETF market growth over the past two years has been the fastest yet and BetaShares is looking to capitalise on this growth.

“Our pipeline of products will finally provide Australian investors of all types – from set and forget investors to more sophisticated active traders – with a range of products that support a wide number of investing and trading strategies. Increasingly ETFs are being used as the building blocks of portfolio construction in international markets and our goal is to support the Australian market in making this successful transition.”

“Our sole focus is on the Australian market and tailoring products for the local investor which will drive further growth in the ETF industry. The strong early inflows have established BetaShares as a significant Australian ETF issuer – we aim to build on our success over 2011,” Mr Corbett concluded.

All BetaShares ETFs are traded on the ASX and can be bought and sold by investors like any share.

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From mid December, each member’s initial account, which total approximately A$200 million of unimpaired assets overall, will be transferred to AMP SignatureSuper in tranches and invested in an investment profile comparable to their previous investment. The fund will be known as the Alliance Superannuation Plan.

AMP Director Product Manufacturing Paul Sainsbury said he was pleased AMP was selected as the preferred ongoing superannuation provider, following a rigorous assessment process by ACT Super.

“AMP SignatureSuper is a strong product which offers its members a choice of 69 investment options and value for money, backed by a pre-eminent brand,” Mr Sainsbury said.

AMP is one of Australia’s largest superannuation providers and one of the country’s top investment managers with A$111 billion (as at 30 June 2010) in assets under management and more than 3.8 million customers.

SignatureSuper, AMP’s flagship corporate superannuation product is one of Australia’s largest super funds with approximately $6.4 billion (as at 30 June 2010) in assets.

On 16 December 2009 APRA appointed ACT Super as the acting Trustee of the Trio superannuation funds when it went into liquidation.

The Trio superannuation funds include: Astarra Superannuation Plan, Astarra Personal Pension Plan and My Retirement Plan, including Seagrims Retirement Plan, TIC Super and Titanium Retirement Fund.

“Our aim is to make the transition process straight forward while also ensuring our new members can access their account as soon as possible following the transfer of assets and appropriate reconciliation,” Mr Sainsbury said.

All the typical features of AMP SignatureSuper such as call centre, administration and on-line access will be available to these members. Once funds are fully transferred to SignatureSuper members will be able to update details, make contributions, investment switches or withdrawals.

AMP will be communicating with individual members shortly, initially providing a detailed information kit and access to online services through Member Central and MyPortfolio.

Members requiring further information about this transition to AMP SignatureSuper can call AMP direct on 1300 506 445.

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