The fund was launched in 2010 and aims to grow an investor’s wealth steadily over time by targeting a return objective of 5.5 per cent above inflation. The fund invests in a wide range of predominantly liquid assets and strategies designed to exceed the return objective with the least risk of loss possible.

AMP Capital Multi-Asset Fund Senior Portfolio Manager Matthew Hopkins said: “The Multi-Asset Fund is managed using three key principles, which combine to create the most effective way to minimise risk. The three principles are dynamic asset allocation, a process designed to adapt the fund’s asset allocation through market cycles; diversity, with an emphasis on differentiated sources of return including absolute return strategies to maximise diversification; and tail hedging, where strategies are employed to soften the impact of major market falls. The processes are working effectively and the fund has performed well during periods of market volatility.”

The Multi-Asset Fund is designed for those who want to grow their capital steadily over time. It is particularly relevant to retirees, who don’t have the capacity to experience a sharp decline in their wealth yet still need to grow their capital. Similarly, the fund’s lower volatility makes it well suited to investors focused on building wealth whether that be for specific lifestyle goals such as annual holidays or to help fund future retirement needs.

It sits within AMP Capital’s goals-based range of products. These funds have been designed to meetspecific client goals rather than outperform a benchmark.

Mr Hopkins said: “FUM has increased significantly during the last 12 months as a result of increased communication with investors and improved awareness of the benefits of multi-asset investing. Markets have also been more volatile during the last two years, which has led to many advisers and customers looking for investments that are better able to navigate the market’s ups and downs. The Multi-Asset Fund has been a good home for that capital.”

Mr Hopkins identified two key investment themes as “lower for longer”, both in terms of inflation and interest rates, and volatility.

“We expect higher volatility, due to uncertainty on potential US rate rises, political uncertainty and fluctuating levels of liquidity. The tailwinds that had supported US earnings and valuations in particular, including lower wages, low interest rates and a weaker US dollar, are increasingly likely to become headwinds. However, volatility also creates opportunity and the fund retains high liquidity to be able to take advantage of market dislocations,” he said.

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The Multi Asset Fund was launched last year to provide retail and institutional investors with a more certain investment outcome amid continuing market volatility. The Fund provides exposure to a wide set of traditional and alternative assets and strategies. It targets returns similar to those of traditional balanced funds but allows for greater flexibility to dynamically adjust levels of investment in each asset class in response to market movements.

AMP Capital Senior Portfolio Manager Matthew Hopkins said the mandate win was acknowledgement of a changing investment environment and the Fund’s ability to provide investors with strong real returns and a greater ability to mitigate risk than traditional approaches.

“AMP Capital’s Multi Asset Fund is a new approach to balanced, long term investing and was developed in response to ongoing volatile investment markets,” Mr Hopkins said.

“The Fund is designed to generate strong real returns for investors with an emphasis on protecting capital.

“The Fund has a focus on risk management and is structured to maintain effective diversification across asset classes, sectors and geographies, with the flexibility to rebalance the portfolio relevant to market conditions.”

The Tuvalu Trust Fund was established in 1987 and was set up to assist the Tuvalu Government to achieve greater financial autonomy and improve its budgetary position.

The Multi Asset Fund targets a return of CPI + 5.5 per cent over rolling five year periods.

The Fund is actively managed by a team of investment professionals and forms part of AMP Capital’s Multi Asset Group (MAG). MAG currently manages more than $53 billion across diversified and multimanager portfolios.

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