Nader Naeimi

AMP Capital’s Dynamic Markets Fund has grown to A$1 billion in funds under management, reaching the milestone in less than five years.

The fund, which is run by AMP Capital Head of Dynamic Asset Allocation Nader Naeimi and supported by Head of Investment Strategy and Chief Economist Shane Oliver, was established in March 2011 to meet the needs of investors concerned about achieving their investment goals in the face of increasing market volatility.

A lower cost and lower volatility alternative to broader equity markets, the fund’s asset allocation is dynamic and flexible, moving with markets across a range of asset classes with the aim of delivering more stable returns over time. Its transparent reporting structure and engaging communication approach means advisers and clients can see how the fund changes investment strategy in response to moving markets.

AMP Capital Head of Dynamic Asset Allocation Nader Naeimi noted: “The fund’s dynamic and flexible approach to asset allocation involves negotiating the ups and downs of the market cycle. Essentially, it aims to buy into under-priced, unloved opportunities and sell out of overpriced, over-loved situations. This provides particular comfort to investors who may be concerned about market volatility and seek smoother returns over the long term.

“Markets that are undervalued, ­under owned and oversold tick our box. The aim isn’t to buy good assets and sell bad assets but to buy assets well and sell assets well. Sometimes things can be so good they’re bad, and sometimes they can be so bad they’re good. You have to have the process and conviction, but you also have to have the art to see what matters when.”

The Dynamic Markets Fund attracted its first institutional mandate in October 2011 and was made available to retail investors in March 2014. The fund has attracted around $600 million in retail FUM since it was launched last year.

AMP Capital Head of Investment Strategy and Chief Economist Shane Oliver said: “I’m thrilled the Dynamic Markets Fund has reached this milestone in such a short amount of time. We established the fund because clients told us they were looking for new and different ways of investing more in line with meeting their investment goals. Through DMF, we have been able to present an alternative to traditional funds for both institutional and retail investors and it has been successful in both markets.”

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• The recent rebound in equities has been dismissed by many as a rally driven by central bank liquidity, and the slide in commodity prices have been cited as evidence of falling demand and ineffective central bank policy.
• Analysing the structural factors driving the commodity bull market over the past decade reveals that the recent weakness does not suggest economic doom and gloom.
• In fact, rather than demonstrating weakening economic growth, the fall in commodity prices represents the movement of commodities to a ‘back seat’ role with positive economic implications. 

To read the paper, click here.

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• The political backdrop has become a significant contributor to short-term market volatility, but the increased volatility is creating enormous opportunities for investors with times horizons beyond the very short-term.
• While it makes sense to expect poor returns from equities and other growth assets given the ominous macro backdrop, the fact that the challenges to growth are so widely known should provide little guidance to future returns.
• The increased scrutiny of macro and political dynamics is providing fuel to the emotional and reactive investment decision making. The silver lining is that volatility and the herd behaviour is creating significant profit opportunities for those who are willing to accept short-term volatility and stay objective in making investment calls.

To read the full article, please click here.

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