The AMP Capital Corporate Bond Fund aims to deliver regular monthly income, whilst seeking to provide capital stability to investors over the medium term. To provide total returns (primarily income with some capital growth) above the Fund’s benchmark over a rolling 3-year basis.
The Fund performed broadly in line with the benchmark in September as credit markets remained resilient amid a volatile rates backdrop. Performance from financials was relatively neutral, with major bank senior spreads rangebound over the month and fixed rate bonds retaining their appeal as outright yields remain enticing. Tier 2 was a modest positive despite a fairly volatile month in spread terms, with positioning focused in shorter dated, high carry bonds. Corporates were broadly steady, with shorter dated auto names outperforming.
Structured securities remain a bright spot, spreads rallying further over the month and providing high quality and low beta carry for the Fund over relatively tight corporate spreads. The modest overweight duration position was a detractor from returns, though positioning is small and remains appropriate as a hedge against some of the credit risk. Higher than benchmark carry helped offset some of the instability in rates markets. Over the month, the Fund participated in transactions from issuers such as NBN Co, Royal Bank of Canada, Suncorp, Toyota, Volkswagen, WestConnex and Westpac.
What is AMP Capital Corporate Bond A AMP Capital Corporate Bond A is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Diversified Credit Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The AMP Capital Corporate Bond A has Assets Under Management of 997.44 M with a management fee of 0.6%, a performance fee of 0.00% and a buy/sell spread fee of 0.4%.
How has the investment product performed recently? The recent investment performance of the investment product shows that the AMP Capital Corporate Bond A has returned 0.39% in the last month. The previous three years have returned 2.84% annualised and 1.71% each year since inception, which is when the AMP Capital Corporate Bond A first started.
How is risk measured in this investment product? There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since AMP Capital Corporate Bond A first started, the Sharpe ratio is NA with an annualised volatility of 1.71%. The maximum drawdown of the investment product in the last 12 months is 0% and -2.68% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product? Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The AMP Capital Corporate Bond A has a 12-month excess return when compared to the Fixed Income - Diversified Credit Index of -2.28% and -0.47% since inception.
Does the investment product produce Alpha over its Peers? Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. AMP Capital Corporate Bond A has produced Alpha over the Fixed Income - Diversified Credit Index of NA% in the last 12 months and NA% since inception.
What are similar investment products? For a full list of investment products in the Fixed Income - Diversified Credit Index category, you can click here for the Peer Investment Report.
What level of diversification will AMP Capital Corporate Bond A provide? AMP Capital Corporate Bond A has a correlation coefficient of 0.73 and a beta of 0.12 when compared to the Fixed Income - Diversified Credit Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers? For a full quantitative report on AMP Capital Corporate Bond A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the AMP Capital Corporate Bond A with the Global Aggregate Hdg Index? For a full quantitative report on AMP Capital Corporate Bond A compared to the Global Aggregate Hdg Index, you can click here.
Can I sort and compare the AMP Capital Corporate Bond A to do my own analysis? To sort and compare the AMP Capital Corporate Bond A financial metrics, please refer to the table above.
Has the AMP Capital Corporate Bond A been independently verified by SMSF Mate? This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in AMP Capital Corporate Bond A? If you or your self managed super fund would like to invest in the AMP Capital Corporate Bond A please contact George's Court, 54-62 Townsend Street Dublin 2 Ireland via phone +61 2 8048 8162 or via email askamp@amp.com.au.
How do I get in contact with the AMP Capital Corporate Bond A? If you would like to get in contact with the AMP Capital Corporate Bond A manager, please call +61 2 8048 8162.
Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the AMP Capital Corporate Bond A. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The Fund outperformed the benchmark in August as Australian credit spreads marginally tightened. Financials continued to be an important driver of performance in August, with significant contribution particularly from some of the longer dated European names. The corporate sector contributed to a significant portion of the excess performance with higher beta industrials and wider-trading names narrowing materially in spread. Structured securities continued their recent robust performance with new deals providing further proof of the strong demand for high quality bank Residential Mortgage-Backed Securities (RMBS) paper. Longer than benchmark duration positioning also contributed to returns, with yields moving lower over the month. Over the month, the Fund participated in transactions from issuers such as ANZ, CBA, Westpac, NBN Co, LT 2023-1 and IDOLT 2023-1.
Performance Commentary - July 31, 2023 The Portfolio outperformed the benchmark in July as Australian credit spreads rallied towards their 2023 tights. Within senior financials offshore banks contributed the most, with strong rallies from European names in particular. The underweight position in longer-dated major banks also contributed to returns as they lagged the broader spread rally. Tier 2 also performed well into the new financial year, with an improved supply outlook and market technicals contributing to a near 30bp rally in recent deals. Select corporate names outperformed, with higher beta sectors and wider-trading names moving tighter. Utilities were arguably the strongest sector, as recent well-received deals provided a number of price points and spreads subsequently rallied. Structured securities continued their recent rally, moving another 5- 10bps tighter over the month as secondary flows were heavily skewed towards buying. Longer than benchmark duration positioning also contributed to returns, with yields rallying over the month. Over the month, the Portfolio participated in a transaction from CNH Industrial Capital
Performance Commentary - June 30, 2023 The Portfolio underperformed the benchmark in June as protection duration positioning detracted from performance. Credit positioning provided a partial offset with senior financials contributing the most to performance as the curve bull-flattened. Subordinated financial paper also helped drive performance as spreads tightened uniformly across the curve. Corporates provided solid performance across most sectors and the recently issued deals especially in the utility sector such as Ausnet 10-year senior led the strong performance from the sector. Structured securities were a large positive contributor with spreads marked tighter over the month. The Portfolio continued to benefit from higher than benchmark carry. Over the month, the Portfolio participated in transactions from issuers such as Harvey 2023-1, Lion 2023-1, Westpac Banking Corporation, QBE Insurance Group, AGI Finance and Transpower New Zealand.
Performance Commentary - May 31, 2023 The Portfolio performed broadly in line with the benchmark in May with credit spreads relatively rangebound. Financials were a positive contributor to performance while corporates provided solid performance particularly in the utilities space as several primary deals set firm spread levels and led to a broad-based sector rally. Structured securities again contributed to Portfolio returns with spreads at historically wide levels. However, this was offset by the detraction from the modest protective duration position given the material move wider in rates. Over the month, the Portfolio participated in transactions from issuers such as Ausnet, Credit Agricole, Bendigo and Adelaide Bank, National Australia Bank and Suncorp.
Performance Commentary - April 30, 2023 The Portfolio outperformed the benchmark in April despite ongoing US regional bank troubles. Financials were the largest contributor to the outperformance as spreads tightened in major bank senior and subordinated paper. The Portfolio’s focus on shorter dated corporate credit was a positive for returns with long-end bonds underperforming. Structured securities again contributed to performance, with a small amount of tightening over the month in AAA spreads despite ongoing supply. Over the month, the Portfolio participated in transactions from issuers such as Apollo 2023-1 and Worley.
Performance Commentary - February 28, 2023 The Fund outperformed the benchmark in February as Australian credit spreads outperformed global peers. Excess returns were driven by BBB credits and higher beta corporates, with further credit curve flattening as the market digests a lack of issuance and higher all-in yields. Senior financials moved tighter despite heavy supply, with Tier 2 bonds also benefitting performance with primary not able to satisfy investor demand particularly in fixed rate tranches. Structured securities were a strong contributor, with spread tightening of over 20bps over the month and very strong demand from investors. Higher than benchmark carry also benefitted the Fund. Over the month the Fund participated in transactions from issuers such as Westpac Banking Corporation, MUFG Bank, FPTT 2023-1 and TRTN 2023-1.
Performance Commentary - December 31, 2022 The Fund outperformed the benchmark in December as Australian credit spreads edged tighter. With five-year major bank senior debt steady at around 100bps over the month, the higher beta names and sectors contributed to most of the outperformance. Tier 2 was a solid contributor, with spreads around 20bps tighter on the month as longer dated lines outperformed. Structured securities remain a strong contributor to excess returns, with issuance at historically wide levels and seasoned lines in high demand in the secondary market. After a significant 20bp rally in rates markets at the beginning of the month, interest rate duration was trimmed. Higher than benchmark carry also aided the outperformance. Over the month the Fund participated in transactions from issuers such as Suncorp and CONQ 2022-1.
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