AMP reviews strategic asset allocation

22 May 2013

AMP reviews strategic asset allocation

AMP’s review of its strategic asset allocation of AMP diversified funds marks another milestone in creating one AMP following the merger with AXA, and is a critical input to creating a consistent investment philosophy across the AMP product offering.

Key changes already implemented as a result of a recent strategic asset allocation review are the addition of exposures to global listed infrastructure and commodities. As part of the current changes, the AMP KiwiSaver Scheme Default Fund will reduce its cash allocation and increase its holdings in New Zealand and global bonds.

For AMP KiwiSaver Scheme non-Default members, this means they now have a dedicated stake in airports, railways, and pipelines around the world. It also means their investments are more widely diversified, which is a point of difference from those KiwiSaver schemes that are heavily exposed to the New Zealand market,” said Jack Regan, Managing Director, AMP New Zealand.

On 21 February, AMP announced a proposal to transfer its AMP Wealth KiwiSaver Scheme members to an enhanced AMP KiwiSaver Scheme which leverages the strengths of both schemes. This proposal is subject to approval by the Financial Markets Authority (FMA), and if approved, is expected to take place in August 2013.

“In addition to aligning AMP’s underlying investment approach across the AMP product offering, we continue to focus on preparing to communicate with our AMP Wealth KiwiSaver members in June about the detail of the proposed transfer of members to the AMP KiwiSaver Scheme,” said Mr Regan.

AMP has more than 260,000 KiwiSaver Scheme members across its two KiwiSaver schemes, 16 per cent market share of KiwiSaver funds under management, and is the market leader in workplace savings in New Zealand.

“With our core focus on investment, our extensive network of professional qualified advisers, and the scale to invest in product and service development to meet the needs of members, AMP is well-positioned for ongoing leadership in KiwiSaver,” said Mr Regan.

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