Ratings house places AMP Capital Core Property Fund 'on hold'
A decision by AMP Capital Investors to pay investor withdrawal requests from its AMP Capital Core Property Fund quarterly has seen ratings house Standard & Poor’s place the fund ‘on hold’.
Commenting on the move, S&P fund services analyst Nathan Bode said the decision to extend the fund’s withdrawal periods was expected to be temporary and it was the manager’s expectation that the fund’s general practice to pay withdrawals on request would return as soon as conditions allowed.
However, he said notwithstanding the quality of the underlying portfolio of direct property assets and the well-regarded investment team, the fund would remain ‘on hold’ at least until the daily withdrawal policy was reinstated.
The ratings house said it had been advised that AMP had adopted its changed approach in response to recent market conditions in the listed and direct property markets, which had caused the asset allocation of the fund to shift to 62 per cent direct property and 38 per cent listed property.
It said this was a significant move away from the fund’s 50/50 target allocation.
AUTHOR
Mike Taylor
Recommended for you
ETF provider VanEck has announced its intention to launch a uranium and energy solution as global political agendas point to expansion in this sector.
PIMCO has announced the launch of a new active fixed-income ETF, marking its fifth active solution on the Australian market after the launch of four ETFs earlier in the year.
With the Australian advice market being a target for US private equity firms, a US advice commentator has shared lessons from his overseas experience, and why PE may be less attractive than initially expected.
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
