In September 2010, Australian Unity Investments (AUI) acquired the previous responsible entity and renamed the fund. Since then, it has clearly articulated its investment strategy and has focused on reducing fund gearing, improving portfolio diversification, reintroducing periodic (albeit limited) liquidity, and undertaking a discounted public offer. In late 2010, AUI provided the first limited liquidity offer to investors in over two years, and will offer additional liquidity in 2011.

“We continue to have a high opinion of AUI’s collective direct property team. For this fund, the property team is led by the experienced Peter Lambden and diversified property portfolio manager Nikki Panagopoulos, who will work closely with trust portfolio manager Vincent Stranges. We see Mr. Lambden and Ms. Panagopoulos and their team as critical to the fund’s future success due to its very active asset management strategy, which aims to reposition the property portfolio mix to address three key risks—tenant, sector, and geographic concentration,” said S&P Fund Services analyst Kelly Napier.

Our positive view of the team is tempered by the portfolio concentration risks, the fee structure, and uncertainty surrounding the fund’s future capital structure. The latter hinges on the success of the present discounted offer and there is also uncertainty surrounding the composition of the fund’s eventual property portfolio after a combination of asset sales and acquisitions.

Ms. Napier added: “On balance, we have conviction in AUI’s quality property management and strategy capability, but note there is strategy execution risk. We also think the fund represents a reasonable risk/return proposition for investors seeking a direct property investment portfolio and capital structure representing a moderate risk profile. Pleasingly, the fund has headroom against debt covenants to provide capital flexibility to execute the strategy to deliver unit-holder value and is not solely reliant on inflows. As a direct property fund, any investment should be approached as a long-term and illiquid one. While the manager intends to offer periodic liquidity, investors should not rely on it.”

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The fund affected by this announcement is:

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Advisers will also soon be able to validate risk premium estimates for AMP products provided by XPLAN’s Risk Researcher by pre-populating easyquote and/or requesting a real-time binding quotation from AMP in Risk Researcher.

AMP Director IFA and Alliance Distribution Dan Powell said AMP continues to enhance its offering to IFAs through investment in technology.

“AMP has worked closely with IFAs to ensure easyquote adds real value to their businesses. Our aim is to make the risk quoting system easy to use and responsive to their particular needs.

“Advisers will also notice the navigation and look and feel of Adviser Online has improved making it a lot easier for advisers to access market-leading resources and support available to them,” Mr Powell said.

Easyquote enables advisers to obtain quotations for AMP risk products using a simple and responsive user interface. Advisers who wish to proceed with an easyquote quotation can automatically pre-populate and lodge the application without the need to re-key large amounts of data.

With technology as the theme, AMP is hosting a series of nationwide risk seminars for IFAs from 15 to 24 February. The seminars will take place in Parramatta, Adelaide, Perth, Melbourne, Sydney and Brisbane and will include a breakfast. Lunch will be provided at the Gold Coast event.

The seminars will focus on how technology can be used as a key driver for future business growth and how it can make a difference to a bottom line.

Technology adviser Mike Walsh, Chief Executive Officer of the consumer innovation research agency Tomorrow, will discuss the practical business implications within the technology maze.

Dan Powell will give AMP’s perspective on the current regulatory environment and AMP Head of Wealth Protection Sales Graham Burnard will explain how AMP Wealth Protection’s current technology capability can assist adviser businesses.

Information about the seminars, including how to register, can be found at www.registration2011.com.au

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