Morningstar downgrades AMP fund
Ratings House Morningstar has given a qualified endorsement to the decision by AMP to extend the redemption arrangements on the AMP Enhanced Yield Fund describing it as “sensible” but “a last resort move”.
The fund has been downgraded by Morningstar to ‘investment grade’.
AMP changed the redemption arrangements on the Enhanced Yield Fund last Friday with withdrawal requests extended beyond the original 10 to 12 days to up to 12 months. Morningstar noted that the change had followed the manager noting higher than usual withdrawal requests that had not been matched by incoming investments.
“This is a last resort move, but a sensible one, showing commitment to looking after remaining investors,” the Morningstar analysis said.
The ratings house paid tribute to the depth of knowledge of the specialist investment teams running the fund, but said that given the restricted liquidity it could no longer recommend the strategy alongside other preferred multi-strategy income options and had therefore downgraded the product to ‘investment grade’.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
