AMP Hendersonhas launched a new yield targeted fund giving retail investors access to private debt investments for the first time, completing a bevy of six product launches in six months from the manager.
The AMP Henderson Enhanced Yield Fund combines investments in structured high yield investments, or unlisted debt, hybrid securities, listed property trusts and cash.
AMP Henderson says that the vehicle pulls together the manager’s core capabilities and experience, and will aim for yield rather than capital growth in the vicinity of 1.5 per cent to 2 per cent above cash.
AMP Henderson director client and marketing Stephen Dunne says the ability to access private debt for retail investors for the first time is due to liquidity support, enabling them to withdraw funds quickly.
Dunne says the creation of a yield-based product comes from the belief that markets will be relatively volatile going forward, and yields will become the driving consideration in investing over the period.
He says that the fund is particularly suitable for investors, such as retirees or late accumulation phase investors, who are looking for this type of steady diversified income.
AMP Henderson hopes to have between $50 million and $60 million in funds under management by the end of the year, with an upper target of about $750 million within five years.
