AMP closes Dynamic Markets fund

amp/Shane-Oliver/

29 April 2021
| By Laura Dew |
image
image image
expand image

The AMP Capital Dynamic Markets fund is to close today in light of falling assets under management and poor performance while manager Nader Naemi will leave AMP after 20 years.

The $175 million fund was downgraded by research house Lonsec in February and given an ‘investment grade’ rating and AMP said it had been under review within the firm “for some time”.

It was currently managed by Nader Naemi who would now leave the business, having joined the firm in 2000 and set up its Dynamic Asset Allocation strategy.

Shane Oliver, head of investment strategy, worked on the fund on its inception in 2012 and continued to provide economic and market insight but AMP said he had not held portfolio management responsibilities for more than five years.

An AMP Capital spokesperson said: “In view of the performance relative to peers and consistent with AMP’s strategy to focus on products that are in demand and are scalable, AMP Capital has today announced it will terminate the AMP Capital Dynamic Markets Fund. 

“The fund’s assets under management have reached a low level and given the fixed operating expenses, will likely lead to an increase in management costs impacting the fund’s ability to deliver cost-effective returns. Closing the fund is in the best interests of investors.”

According to FE Analytics, the AMP Capital Dynamic Markets fund had returned 15.3% over five years to 31 March, 2021, versus returns of 28.7% by the mixed asset – flexible sector within the Australian Core Strategies universe.

Performance of fund versus sector over five years to 31 March 2021

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months ago

Commonwealth Bank has formally dropped to zero advisers following LGT Crestone’s acquisition of its advice arm – some six years on from the Hayne royal commission. ...

4 weeks ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 3 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3