AMP launches alternative debt fund

AMP has launched an alternative debt fund to provide exposure to global private debt.

Part of the firm’s Diversified Credit sector, the fund can be accessed via members of AMP’s super fund in the MySuper or the Future Directions options range.

The strategy on offer aims to generate higher long-term returns with a lower correlation to the listed markets, AMP said.

AMP will initially commit $300 million into the fund which will provide exposure via two external managers to credit risk transfer and flexible credit solutions.

• Purchasing credit risk notes from issuing banks insuring the first loss on a diversified pool of high-quality loans, providing regulatory capital relief to the banking institution to maintain their relevant Tier 1 capital ratios.
• Wide remit to take advantage of opportunities in Special Situations, Distressed Credit, Short-Term and Long-Term opportunistic lending.

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AMP chief investment officer, Anna Shelley, said: “We’re excited to be providing our super fund members with bespoke access to global private debt investments in developed markets. This is a whole of team effort to successfully deliver a unique, new investment solution – one that will help bolster our existing range of diversified investments, providing flexibility and choice for our members.

“By combining credit risk sharing with more of an opportunistic strategy, AMP is paving the way forward for standalone international private debt strategies that can deliver for our members and customers over the long term with valuable exposure to private markets.

“The new funds also provide complementary exposures to the existing leveraged buyout financing and domestic-based direct credit investments AMP implemented in 2022.”