Select how you would like to invest
Are you looking for a regular and reliable income stream that can also reduce the volatility of your overall portfolio?
We believe that success is about understanding our clients’ needs, and delivering to those needs. We recognise there’s been a fundamental change in markets over the last few years. Because of this, the ability to preserve capital and provide a steady income stream has become a more important goal than ever for many investors, particularly those who are entering or already in retirement.
We believe that our ‘true to label’ corporate bond fund provides a more secure future for those investors who are looking for capital stability and a regular income from their investments.
"We assess credit markets from multiple perspectives, which helps us to identify potential risks and improve the capital stability of the fund."
Simon Warner, Global Chief Investment Officer, Fixed Income
A fund built with these goals in mind
Line of sight on your income
The estimated monthly distribution rate is announced 6 months in advance, providing investors with an indication of the expected income.*1
Our size is a strength
AMP Capital’s size and scale ultimately helps our clients. Priority access to bond issuance and negotiating power on terms means we’re able to mitigate some risks within the fund.
Receive regular, reliable income
The fund aims to provide regular monthly income by investing in an actively managed portfolio of credit securities.
Reduce the volatility of your overall portfolio
With more than 100 securities typically held at any one time, this helps to minimise risk and broaden the opportunity set. We predominantly invest in high quality corporate bonds issued in the Australian bond market and lend to companies that are in stable industries, such as financials, utilities and telecommunications.
How do we aim to provide regular, reliable income?
- We predominantly invest in high quality corporate bonds issued in the Australian bond market and lend to companies that are in stable industries, such as financials, utilities and telecommunications.
- We actively manage the bonds in the portfolio to minimise any risk associated with changes in interest rates. Not all fixed income funds operate this way.
- We have the flexibility to capitalise on income opportunities in the global bond market.
How does this fund fit into your portfolio?
Investors in retirement have very distinct goals and these can be categorised into essential needs, lifestyle wants and legacy. This fund fits within then essential needs part of a portfolio which covers fundamental items such as food, transport and housing.
As the fund aims to generate a regular, reliable income, this means it is well suited for investors who are looking for an investment solution that covers essential needs such as paying for food or housing. It can be used as:
- A defensive asset allocation tilt within the essential needs part of a portfolio
What are the risks?
Credit Risk
The fund invests in corporate bonds, which means it essentially lends money to companies for an agreed time and interest payment. There is the risk that the borrower defaults on interest payments, the repayment of capital or both. Historically, the fund has very low levels of default.
Interest rate risk
While capital gains may be earned in a falling interest rate environment, capital losses can occur in a rising interest rate environment.
Fund facts
| APIR code |
AMP1285AU |
| Investment objective |
Primary: The AMP Capital Corporate Bond Fund aims to deliver regular monthly income, whilst seeking to provide capital stability to investors over the medium term. Secondary: To provide total returns (primarily income with some capital growth) above the Fund's benchmark over a rolling 3-year basis. |
| Minimum suggested timeframe |
3 years |
| Distribution frequency |
Monthly |
| Inception date |
29 September 2009 |
| Minimum investment |
A$ 10,000 - Personal Investor/Off-platform Class H |
| Risk level (1 - 7) |
4. Medium |
| Benchmark |
AMP Capital Corporate Bond Fund Composite Index |
| Status |
Open |
| Investment objective |
Primary: The AMP Capital Corporate Bond Fund aims to deliver regular monthly income, whilst seeking to provide capital stability to investors over the medium term. Secondary: To provide total returns (primarily income with some capital growth) above the Fund's benchmark over a rolling 3-year basis. |
| Minimum suggested timeframe |
3 years |
| Distribution frequency |
Monthly |
| Minimum investment |
A$ 10,000 - R unit class |
| Risk level (1 - 7) |
4. Medium |
| Benchmark |
AMP Capital Corporate Bond Fund Composite Index |
The Fund's risk level is based on the estimated number of negative annual returns for the Fund over any 20 year period and is not a complete assessment of the risks of investing in the Fund. For instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than an investor may require to meet their objectives. Consequently, before choosing to invest or reinvest in the Fund, you should read the Fund's PDS and incorporated information and consider factors such as the likely investment return, the risks of investing and your investment time frame. Information about the methodology used for calculating the risk level is available here.
* Past performance of this Fund is reported using the UBS Composite Bond Index (All Maturities) up to 28 February 2011, and the UBS Credit Index 0+ thereafter. Note that the UBS Credit Index 0+ was renamed to the Bloomberg AusBond Credit 0+ Yr Index as at 1 October 2014. Note that the benchmark has changed from the Bloomberg AusBond Credit 0+ Yr Index to Bloomberg AusBond Bank Bill Index as at 29 February 2016.
How to invest
3
Make note of the ASX mFund code in order to invest on the ASX site
ACA02
The Professional Planner | Zenith Fund Awards are determined using proprietary methodologies. Fund Awards were issued October 9, 2015 and are solely statements of opinion and do not represent recommendations to purchase, hold, or sell any securities or make any other investment decisions. Ratings are subject to change.
The Professional Planner | Zenith Fund Awards are determined using proprietary methodologies. Fund Awards were issued October 10, 2014 and are solely statements of opinion and do not represent recommendations to purchase, hold, or sell any securities or make any other investment decisions. Ratings are subject to change.
[1] Distributions for AMP Capital Corporate Bond Fund are preannounced twelve months in advance. It is important to note that the final annualised distribution yield will not be known until the end of the financial year, that the distribution yield estimate is not guaranteed, and that it may change due to market conditions.
AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the AMP Capital Corporate Bond Fund and the issuer of the units in the Fund. To invest in the Fund, investors will need to obtain the current Product Disclosure Statement (PDS) from AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232 497) (AMP Capital). The PDS contains important information about investing in the Fund and it is important that investors read the PDS before making a decision about whether to acquire, or continue to hold or dispose of units in the Fund. Neither AMP Capital, AMPCFM nor any other company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this information. Past performance is not a reliable indicator of future performance. While every care has been taken in the preparation of this information, AMP Capital makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. This content has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of this information, and seek professional advice, having regard to their objectives, financial situation and needs.