AMP Capital Equity Income Generator aims to provide an income stream of around 6-8% per annum (before fees) over the long term.
Australian equities performed well in July after a torrid June quarter, with the S&P/ASX 200 and S&P/ASX 300 Accumulation Index finishing the month up 5.75% and 5.95% respectively. This was driven by improving investor sentiment as bond yields fell, US companies reporting generally positive results and slowing economic growth which softened expectations for future rate hikes.
Bond yields meanwhile fell during the month, as soft economic data in the US moderated inflation expectations. Australian 10-year yields dropped 0.60% to 3.06% and in the US, 10-year yields fell by 0.33% to 2.64%.
What is AMP Capital Equity Income Generator AMP Capital Equity Income Generator is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Large Value 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 Equity Income Generator has Assets Under Management of 130.94 M with a management fee of 0.72%, 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 Equity Income Generator has returned 1.89% in the last month. The previous three years have returned 6.76% annualised and 15.03% each year since inception, which is when the AMP Capital Equity Income Generator 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 Equity Income Generator first started, the Sharpe ratio is 0.38 with an annualised volatility of 15.03%. The maximum drawdown of the investment product in the last 12 months is -14.07% and -30.58% 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 Equity Income Generator has a 12-month excess return when compared to the Domestic Equity - Large Value Index of -2.3% and -1.54% 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 Equity Income Generator has produced Alpha over the Domestic Equity - Large Value Index of -0.22% in the last 12 months and -0.16% since inception.
What are similar investment products? For a full list of investment products in the Domestic Equity - Large Value Index category, you can click here for the Peer Investment Report.
What level of diversification will AMP Capital Equity Income Generator provide? AMP Capital Equity Income Generator has a correlation coefficient of 0.97 and a beta of 1.29 when compared to the Domestic Equity - Large Value 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 Equity Income Generator and its peer investments, you can click here for the Peer Investment Report.
How do I compare the AMP Capital Equity Income Generator with the ASX Index 200 Index? For a full quantitative report on AMP Capital Equity Income Generator compared to the ASX Index 200 Index, you can click here.
Can I sort and compare the AMP Capital Equity Income Generator to do my own analysis? To sort and compare the AMP Capital Equity Income Generator financial metrics, please refer to the table above.
Has the AMP Capital Equity Income Generator 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 Equity Income Generator? If you or your self managed super fund would like to invest in the AMP Capital Equity Income Generator please contact 33 Alfred Street, Sydney via phone +61 2 8048 8162 or via email askamp@amp.com.au.
How do I get in contact with the AMP Capital Equity Income Generator? If you would like to get in contact with the AMP Capital Equity Income Generator manager, please call +61 2 8048 8162.
Comments from SMSF Mates SMSF Mate does not receive commissions or kickbacks from the AMP Capital Equity Income Generator. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - June 30, 2022 Australian equities continued to decline in June, with the S&P/ASX 200 and S&P/ASX 300 Accumulation Index finishing the month down -8.80% and – 9.11% respectively, as tighter monetary policy pushed up real yields and pressured valuations. Investors flocked to defensive assets amid growing concerns of a global recession.
Consumer Staples (+2.2%) was the only sector with a positive return for the period, as investors sought names with defensive characteristics including Endeavour Group (+4.3%), Woolworths (+2.7%) and Coles (+1.6%). Materials (- 12.4%) was the worst performing sector, as weaker commodity prices saw resources companies underperform. Gold producers fell sharply, with Evolution Mining (-38%) down after downgrading production guidance and warning of higher costs, which impacted other gold companies.
Performance Commentary - June 30, 2022 Australian equities continued to decline in June, with the S&P/ASX 200 and S&P/ASX 300 Accumulation Index finishing the month down -8.80% and – 9.11% respectively, as tighter monetary policy pushed up real yields and pressured valuations. Investors flocked to defensive assets amid growing concerns of a global recession. Consumer Staples (+2.2%) was the only sector with a positive return for the period, as investors sought names with defensive characteristics including Endeavour Group (+4.3%), Woolworths (+2.7%) and Coles (+1.6%). Materials (- 12.4%) was the worst performing sector, as weaker commodity prices saw resources companies underperform. Gold producers fell sharply, with Evolution Mining (-38%) down after downgrading production guidance and warning of higher costs, which impacted other gold companies
Performance Commentary - May 31, 2022 April proved a weak month for global equities more broadly, as rising inflation fears fuelled concerns of a slowdown in economic growth. This was highlighted by large declines in US equities, as the US Federal Reserve (Fed) hiked interest rates which pressured equity valuations. While modestly down, Australian equities showed resilience and outperformed global equities for the third month in a row. Utilities (+9.3%) was the best performing sector as investors sought more defensive assets, this also led to transport (+5.4%) and insurance (+5.2%) outperforming. Technology (-10.4%) was the worst performing sector, as it still has the highest valuations and is impacted most by the rise in bond yields. Block Inc (SQ2, -21.7%) and WiseTech Global (WTC, -11.4%) posted double digit falls after performing strongly in Q1. A key reason Australian equities are outperforming the US this year is the smaller technology weighting in ASX indices. Health care (-2.5%) and consumer discretionary (-4.2%) also underperformed.
Performance Commentary - April 30, 2022 April proved a weak month for global equities more broadly, as rising inflation fears fuelled concerns of a slowdown in economic growth. This was highlighted by large declines in US equities, as the US Federal Reserve (Fed) hiked interest rates which pressured equity valuations. While modestly down, Australian equities showed resilience and outperformed global equities for the third month in a row. Utilities (+9.3%) was the best performing sector as investors sought more defensive assets, this also led to transport (+5.4%) and insurance (+5.2%) outperforming. Technology (-10.4%) was the worst performing sector, as it still has the highest valuations and is impacted most by the rise in bond yields. Block Inc (SQ2, -21.7%) and WiseTech Global (WTC, -11.4%) posted double digit falls after performing strongly in Q1. A key reason Australian equities are outperforming the US this year is the smaller technology weighting in ASX indices. Health care (-2.5%) and consumer discretionary (-4.2%) also underperformed.
Performance Commentary - February 28, 2022 Australian shares bucked the global trend of market falls in February, with the S&P/ASX 200 index rising 2.14%, on a total-return basis for the month.
Reasons for the relative optimism likely included a comparatively dovish central bank still sounding cautious on future rate rises; geographic isolation and lack of significant direct economic ties to Russia; strong commodity prices strengthening Australia’s terms of trade and continued economic reopening; and social and border restrictions being rolled back further during February.
Inflation, which is arguably still the prime market concern in Australia and overseas, remains elevated, though is currently lower than in many other advanced economies. Corporate earnings reports were also generally strong in February, with dividends rising and outlook statements becoming somewhat clearer. At a sector level, materials and energy stocks were strong performers as commodity prices continued to swell. Information technology stocks meanwhile were weak on the back of negative sentiment emanating from global markets.
Performance Commentary - January 31, 2022 Australian shares fell in January, with the S&P/ASX 200 index returning -6.35%, on a total return basis. The pullback was driven by global markets, which experienced a marked bearish turn of sentiment amid compounding inflationrelated fears, particularly with regard to interest rate normalisation against a background of record high debt levels. Meanwhile, the Reserve Bank of Australia has signalled an impending end to its quantitative easing program, while it weighs up when to initiate rate hikes. The COVID-19 pandemic appears to be having a diminishing impact on shares, with some light at the end of the tunnel apparent as a number of overseas nations have begun to drop all virus-related restrictions.
While most sectors were negative for the month, information technology had a particularly tough time on the back of a global selloff of the segment, particularly given the growth-dependant nature of many of these businesses, in many cases combined with high earnings multiples. Utilities unsurprisingly saw some strength given the turn away from growthfocussed stocks, although energy stocks were the top performers against a background of continued strong demand, along with a falling Australian dollar.
Performance Commentary - December 31, 2021 Despite a strong international lead, Australian shares range-traded for much of the December quarter against a backdrop of mixed sentiment, before a small Santa Claus rally at year-end led the S&P/ASX 200 index to finish up by 2.09% on a total return basis with our fund strongly outperforming that. Economic data released throughout the quarter was generally consistent with a strong bounce-back following the removal of various Delta-wave lockdowns and restrictions prior to the period, though inflation continued to rise. The latest new COVID-19 variant, Omicron, meanwhile added uncertainty, though state governments have so far been somewhat more restrained with reintroducing restrictions amid high vaccination rates, as well as growing fatigue towards restrictions in general from the public. Given the global inflationary environment, speculation on future interest rate rises was a theme, which impacted sentiment towards some sectors. At a sector level, materials and utilities were the clear outperformers, likely owing respectively to rising commodity prices and a growing search for shelter from inflation. Energy and information technology (IT) meanwhile pulled back over the period, as some pessimism spilled over from global markets amid ongoing supply constraints as well as some specific overseas IT company issues
Product Snapshot
Product Overview
Performance Review
Peer Comparison
Product Details