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
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