NEWS UPDATE: AMP fund placed 'on hold'
Ratings house Standard & Poor’s (S&P) has placed a key AMP fund ‘on hold’ after AMP announced late last week that it had extended the fund’s withdrawal period from 30 days to 12 months.
S&P said it had placed the AMP Capital Enhanced High Yield Fund ‘on hold’ following the redemption change, noting that AMP had previously sought to pay all redemption requests within 10 business days with a maximum payment period of 30 days.
Commenting on the move, S&P Fund Services analyst David Erdonmez said the fund had provided investors with an exposure to traded high-yield and private-debt securities with the benefit of liquidity.
“Removing the liquidity benefit does alter the makeup of the fund sufficiently to warrant the fund being placed ‘on hold’,” he said.
S&P will review the ‘on hold’ rating after it meets with AMP.
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