8th Feb 2019
Introduction
We have recently reviewed the strategic asset allocation (SAA) of our Responsible Investment Leaders diversified funds. This was to incorporate recent economic, market and industry developments, and to ensure portfolio returns are maximised for the level of risk taken. The benchmark allocations are formally reviewed every three years. However, enhancements may still occur at other times should market conditions, regulatory settings or modifications to AMP Capital’s global outlook bring about a significant change to our risk or return forecasts.
Summary of changes
A review undertaken in the last quarter of 2018 has resulted in the following changes to the AMP Capital diversified funds:
- > The allocation to growth assets in the RIL Balanced Fund has been increased to 65%, funded by a reduction in the allocation to income assets, specifically global and New Zealand fixed interest.
- > A small allocation to ‘alternative assets’ has been introduced. ‘Alternatives’ include assets with a lower correlation to traditional equities and bonds, or which express an ESG investment theme.
- The underlying investment vehicle for Australian equities will change to the AMP Capital Responsible investment Leaders Australian Share Fund.