.jpg)
AMP Capital has announced the launch of a new Global Companies Fund, stating that its New Zealand client base is now looking for “something different” following a tangible downturn in returns. The launch comes following AMP’s announcement of a slew of transactions involving its wealth protection and mature life businesses last week.
The new fund is long-only, and will focus on a concentrated portfolio of 25-35 companies with a solid track record of wealth creation. According to AMP Capital New Zealand managing director Grant Hassell, the primary focus of the fund will be to deliver cashflows until the market can stabilise.
“We’ve been seeing very strong investment returns across all asset classes in New Zealand for about 15 years,” Hassell told Insurance Business.
“Our client base here is now looking for something a little different so that we can pass the baton when there’s a bit of a downturn, and we’ve had a hint of that starting to happen in the last couple of months. Our clients have been keen to look for some innovative products, strategies and ideas to be generated offshore, that we can pull back into the New Zealand market for them to use. I think this is a really good place to start.
“The idea is that we can have a bit of a team of specialists who are getting intimately involved in the companies,” he explained. “They’re analysing and putting together a very concentrated portfolio so that they can mostly concentrate on the cashflows and deliver good returns when the market starts to stabilise.”
Companies within the fund include several robotic and surgical businesses, and Hassell says AMP has already received interest from investors looking to diversify their equities exposure across markets.
“We’re pleased that this has connected with our client base,” he stated. “Typically when new products come to market, investors are looking for a long track record of returns. We’ve had 10 investors step up with just an 18 month track record, which is confirmation for us that people are looking for something a little bit different and something with more concentration.”
