How did AMP’s Dynamic Markets fund perform?
As AMP closes its Dynamic Markets fund on the basis of poor performance, how has it performed over the long-term?
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”.
In a statement, 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 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 fund outperformed over the one year to 31 March, 2021, returning 25% versus returns of 13.9% by the mixed asset-flexible sector within the Australian Core Strategies universe.
The fund also underperformed over five years with returns of 15.3% versus sector returns of 28.7%. It also underperformed since inception in September 2011, having returned 61% versus returns over the same period by the sector of 75.8%.
AUTHOR
Laura Dew
Recommended for you
Evidentia’s chief investment strategist Nathan Lim has announced his retirement after a 30-year career.
GQG Partners has marked its fifth consecutive month of outflows as its AI concerns lead to fund underperformance but overall funds under management increased to US$166.1 billion.
Apostle Funds Management is actively pursuing further partnerships in Asia and Europe but finding a suitable manager is a “needle in a haystack”.
Managed account provider Trellia Wealth Partners, formed from the merger between Betashares and InvestSense, has appointed its first managing partner.
