AMP Capital Corporate Bond A (AMP0557AU) Report & Performance

What is the AMP Capital Corporate Bond A fund?

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.

  • It is a reasonable option for investors seeking diversified Australian credit exposure, but multiple changes over a prolonged period make it hard to recommend.
  • Opportunistic high-yield exposures and global credit opportunities have been added over the past several years to enhance returns, although it’s not clear whether AMP Capital has an edge in this space relative to peers.
  • As of 31 Dec 2019, duration is roughly half a year, typical for this strategy, reflecting its cash benchmark.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For AMP Capital Corporate Bond A

AMP Capital Corporate Bond A Fund Commentary September 30, 2023

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.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
AMP Capital Corporate Bond AAMP0557AUManaged FundsFixed IncomeDiversified CreditFixed Income - Diversified Credit IndexGlobal Aggregate Hdg Index997.44 M0.6%0.00%0.4%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
AMP Capital Corporate Bond A0.58%1.44%5.27%1.7%4.76%0.71%1.13%1.75%0%-2.46%-2.68%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
AMP Capital Corporate Bond AFixed Income - Diversified Credit Index-1.57%-0.46%0.06%0.06%0.06%0.182.13%1.49%0.60.73

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
AMP Capital Corporate Bond AYesGeorge's Court, 54-62 Townsend Street Dublin 2 Ireland+61 2 8048 8162https://www.amp.com.auaskamp@amp.com.au

Product Due Diligence

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 0.58% in the last month. The previous three years have returned 1.7% annualised and 1.75% 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 1.37 with an annualised volatility of 1.75%. 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 -1.57% and -0.46% 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 0.06% in the last 12 months and 0.06% 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 0.18 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.

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Historical Performance Commentary

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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