Grant Hassell

The AMP Capital Diversified Infrastructure Trust (ADIT) and AMP Capital Core Infrastructure Fund (CIF) have attracted their first New Zealand investors, reflecting growing interest locally in the asset class.

The funds have appealed to New Zealand investors, including a number of Iwi Trusts, due to a strong track record of long-term stable returns and low volatility.

The ongoing investor demand for these funds reflects continued investment by AMP Capital in its infrastructure investment capabilities, providing investors global exposure to sectors including transport infrastructure, utilities and energy.  For example, both ADIT and CIF hold stakes in the New Zealand electricity and gas distributor Powerco.

AMP Capital New Zealand Managing Director Grant Hassell said: “I’m delighted to welcome our first New Zealand investors into ADIT and CIF.  Infrastructure is an asset class that continues to go from strength to strength globally due to its stable long-term returns and defensive qualities.

“New Zealand investors are increasingly seeking to increase their exposure to the asset class and they are particularly interested in funds and assets that have strong ESG credentials.  ADIT and CIF are actively managed against a rigorous ESG framework, which has caught the attention of a number of New Zealand investors,” he said.

Environmental, social and governance (ESG) policies are used to guide investment decisions and ongoing management of the funds. ADIT has been ranked by GRESB’s infrastructure ratings as the best in the world for ESG for the last two years, and Powerco ranked number one globally for energy and utility companies.

AMP Capital Diversified Infrastructure Trust

Established in 1995 ADIT is one of the longest-running infrastructure funds in the world, and invests in a diversified portfolio of core infrastructure assets in Australia and New Zealand. The fund primarily targets mature unlisted assets with diversified exposure to transport links, transport nodes, energy and utilities, and social infrastructure.

The addition of the first New Zealand investors has continued the momentum for ADIT after a strong 2017, which included the successful refinancing of one of the fund’s assets, Australian rolling stock public private partnership Reliance Rail, and a strong capital raising.

ADIT now has approximately 25 institutional investors across the world, with funds under management around $1.3 billion.

ADIT Fund Manager Michael Cummings added: “In terms of our strategy for 2018, we have a number of key pipeline opportunities in sectors such as student housing and energy as we look to deploy capital opportunistically and gain greater diversity across the portfolio. ESG remains a top priority for us as strong ESG credentials provide a positive correlation with comprehensive risk management policies and sustainable financial performance.  ADIT is the number one performing unlisted Australian infrastructure fund over a one and five-year period, according to the Mercer Investment Performance Survey.”

AMP Capital Core Infrastructure Fund

CIF provides smaller investors access to both listed and global unlisted infrastructure assets, typically only available to large institutional investors. The fund provides diversified exposure to multiple sectors, OECD regions and asset types including airports, transport infrastructure, water, gas, and electricity.

Since its inception in 2007, CIF has grown to $540 million in funds under management and has a broad client base of investors from Australia, Asia and now New Zealand.

CIF Fund Manager John Julian commented: “Infrastructure has been a strong performing asset class and we’re seeing continued interest from investors who want to access unlisted infrastructure investments not usually available to smaller investors. We’re pleased with the continued growth of the fund and will continue to selectively invest across sectors and regions where we see the best risk-adjusted opportunities for our investors.”

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Grant Hassell

AMP Capital has launched three new passively-managed index fund options for New Zealand retail investors to make it easier for them to access additional cost-effective capabilities.

AMP Capital already offers a range of passive funds for wholesale clients seeking low-cost exposure to listed markets. In response to increasing demand for strategies offering broad market exposure with low operating expenses, three new funds are now available to retail investors.

The new funds include the All Country Global Shares Index Fund, which aims to provide a return that closely matches the return of the MSCI All Country World Index ex Tobacco Index; the NZ Shares Index Fund, which aims to provide a return that closely matches the return of the S&P/NZX 50 Index; and the Hedged Global Fixed Interest Index Fund, which aims to provide a return that closely matches the Bloomberg Barclays Global Aggregate Bond Index (this fund also excludes Tobacco), fully hedged to the New Zealand dollar.

At the same time the minimum investment amount for retail investors has been lowered to $50 from $2,000, and the funds will pay a distribution every six months. The funds are also PIE-compliant, which may provide a tax advantage for some investors on higher income tax rates.

Tax efficiency has also been an important consideration in structuring the global funds. The All Country Global Shares Index (underlying funds), NZ Shares Index Fund and the Hedged Global Fixed Interest Fund have segregated mandates with the underlying investment managers in New Zealand allowing for any foreign and New Zealand tax credits to flow through to the New Zealand vehicle. This also provides control over the investment guidelines, allowing the funds to be easily set up to exclude prohibitive investments including tobacco, which is excluded under AMP Capital’s ethical framework.

Grant Hassell, Managing Director & Chief Investment Officer, said: “AMP Capital is committed to delivering both active and passive capabilities that match our clients’ needs as we recognise the role they both play in a diversified portfolio. Introducing the three additional index funds to retail investors enables us to offer these capabilities to a wider universe of clients seeking low-cost exposure to these asset classes.

“The new funds complement our diverse range of actively-managed funds available to retail investors. We now offer 26 funds for retail investors seeking access to high-quality assets such as global property and global infrastructure, alongside traditional asset class such as corporate bonds and equities.”

The funds are available on AMP Capital’s direct investment platform from 1 December 2017, and InvestNow from mid-December.

AMP Capital has also announced changes to the investment strategy for the AMP Capital Hedged Global Fixed Interest Fund. This follows the completion of a review into AMP Capital’s multi-manager global fixed interest strategy.

The fund will now be managed to specific ‘responsible investment’ criteria, which encourages investment in companies with strong environmental, social and governance (ESG) characteristics. The underlying managers will be governed by AMP Capital’s Responsible Investment Charter.

The integration of ESG factors will increase the responsible investment focus of the fund and leverage AMP Capital’s expertise in this area. This will help provide greater insights into the areas of potential risk and opportunity that can impact the value, performance (risk and/or return) and reputation of the fund’s underlying investments.

The new strategy will also see the inclusion of an AMP Capital Australia global sovereign bond mandate alongside existing manager Colchester. Diversifying the global sovereign bonds segment between two equally-weighted managers provides greater diversification and a smoother return profile.

A weighted composite benchmark is also being introduced to replace the current Bloomberg Barclays Global Aggregate Index. This composite benchmark will align benchmark weightings with the underlying managers’ objectives and strategies.

These changes take effect from 30 November 2017.

Product Disclosure Statements for the Index Funds (the Index Funds Product Disclosure Statement) and the Hedged Global Fixed Interest Fund (the Cash and Fixed Interest Funds Product Disclosure Statement) are available from the AMP Capital website www.ampcapital.co.nz. The manager and issuer of the Index Funds and the Hedged Global Fixed Interest Fund is AMP Investment Management (N.Z.) Limited, a wholly owned subsidiary of AMP Capital.

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Grant Hassell

AMP Capital has transitioned the first of its retail products to the new regulatory  regime under the Financial Markets Conduct Act 2013 (FMC Act) a year ahead of  the required deadline. From yesterday, new compliance obligations will apply to the offer, distribution and governance  of the 24 funds in the AMP Capital Investment Funds product suite.

The FMC Act introduces a number of changes for companies providing managed  investment schemes, including a licence requirement, a new compliance regime  and product disclosure statements for financial products.  Market participants have until December 2016  to transition to the new regime.

Grant Hassell, AMP Capital Managing Director and Head of Fixed Income, reaffirmed AMP  Capital’s commitment to the new investor-focused regulations.

“As a strong supporter of financial market reform, we fully support the FMC Act’s  intent to improve investor outcomes. AMP Capital is proud to be one of the first fund managers in New Zealand to be  granted a licence under the Act, and now one of the first to transition its  retail product range to the new regime.” Mr Hassell said.

“One  of the principal objectives of the FMC Act was to ensure investors and their  advisers have better and clearer information allowing them to make confident  and informed decisions.  Previous long  and highly technical prospectus and investment statements have been replaced by  a product disclosure statement tailored to retail investors.  In practical terms, this means the AMP Capital Investment Funds investment statement will be replaced by six product  disclosure statements, each covering funds on a thematic basis.

“We  are pleased with the improved compliance and governance we have put in place  following extensive consultation with the Financial Markets Authority and  remain committed to providing investors with excellent investment management products and services.”

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Ms Swan joined AMP Capital in 2001 and has been Senior Relationship Manager since 2009.

Based in Wellington, Ms Swan will be responsible for leading the Distribution team in New Zealand and working with clients to develop investment solutions that meet their needs.

She will report to AMP Capital Head of Australia and New Zealand Clients Craig Keary and work closely with AMP Capital New Zealand Managing Director Grant Hassell to grow the business.

Mr Keary said: “I’m delight to appoint Rebekah to the role of Head of New Zealand Distribution after an extensive internal and external recruitment search. During the past 14 years, Rebekah has been a passionate advocate for delivering outstanding outcomes to clients and for the AMP Capital New Zealand business. She also has a keen interest in socially responsible investing and helping improve the financial wellbeing of New Zealand women through her involvement as Chair of New Zealand Women in Super.”

Mr Hassell added: “Rebekah has a compelling vision for how we can deliver an even better experience for clients in New Zealand and both Craig and I look forward to working with her to bring this vision to life.”

AMP Capital is now recruiting for another Relationship Manager for the New Zealand team.

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“Grant is highly regarded in the New Zealand market for his leadership of AMP Capital’s consistently award-winning Fixed Income team. His appointment as Managing Director enables this leadership capability to be extended across the business,” says Stephen Dunne, AMP Capital CEO and Chairman, AMP Capital New Zealand.

“I want to acknowledge the outstanding stewardship of Graham Law as Managing Director over the past six years, successfully steering the business through many challenges and opportunities post the Global Financial Crisis and spearheading significant changes that have positioned the business for the future.

“Graham has also made an important contribution to nurturing leadership capability within AMP Capital’s wider New Zealand leadership team that has enabled a smooth succession at the right time,” says Mr Dunne.

As incoming Managing Director and Head of Fixed Income, Mr. Hassell’s immediate priority will be to build on AMP Capital’s market-leading position in key investment capabilities and deliver on its growth strategy as it continues to meet the needs of existing and prospective clients.

Mr Hassell has been AMP Capital New Zealand’s Head of Fixed Income since 2006, having first joined AMP Capital 28 years ago. He has also been a longstanding member of the AMP Capital New Zealand Leadership Team and a Director of AMP Investment Management.

– See more at: http://media.amp.com.au/phoenix.zhtml?c=219073&p=irol-newsArticle&ID=2034649#sthash.d2iIFgvd.dpuf

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