AMP closes Dynamic Markets fund
The AMP Capital Dynamic Markets fund is to close today in light of falling assets under management and poor performance while manager Nader Naemi will leave AMP after 20 years.
The $175 million fund was downgraded by research house Lonsec in February and given an ‘investment grade’ rating and AMP said it had been under review within the firm “for some time”.
It was currently managed by Nader Naemi who would now leave the business, having joined the firm in 2000 and set up its Dynamic Asset Allocation strategy.
Shane Oliver, head of investment strategy, worked on the fund on its inception in 2012 and continued to provide economic and market insight but AMP said he had not held portfolio management responsibilities for more than five years.
An AMP Capital spokesperson said: “In view of the performance relative to peers and consistent with AMP’s strategy to focus on products that are in demand and are scalable, AMP Capital has today announced it will terminate the AMP Capital Dynamic Markets Fund.
“The fund’s assets under management have reached a low level and given the fixed operating expenses, will likely lead to an increase in management costs impacting the fund’s ability to deliver cost-effective returns. Closing the fund is in the best interests of investors.”
According to FE Analytics, the AMP Capital Dynamic Markets fund had returned 15.3% over five years to 31 March, 2021, versus returns of 28.7% by the mixed asset – flexible sector within the Australian Core Strategies universe.
Performance of fund versus sector over five years to 31 March 2021
AUTHOR
Laura Dew
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