AMP opens venture capital fund to retail
AMP Asset Management has opened its $580 million private capital investment portfolio to the retail market.
AMP Asset Management has opened its $580 million private capital investment portfolio to the retail market.
Called the Direct Investment Portfolio, it is invested in unlisted assets in the re-sources, industrial and infrastructural sectors.
After 35 years experience in this field, AMP is the biggest player in Australia and ranks among the top 20 globally.
It now hopes to raise $75 million from the DIY and small corporate superannuation markets. Private capital projects for this amount have already been earmarked and the minimum investment is $50,000.
Director of client services Stephen Dunne says AMP’s portfolio offers great diver-sification benefits because its performance has a low correlation to that of Austra-lian and international equity markets, as well as cash and direct property.
Its investments are also spread across different types of business, sizes of busi-nesses and stages of business.
Assets range from power stations, roadways and aluminium smelters to copper mines and fibre optic cable networks. The names include Melbourne Airport, United Energy, Sale Prison, Tasman Building Products, Cork International and Canning Vale Weaving Mills.
Product manager Giles Craig says about 20 per cent of the exposure is offshore and this figure is expected rise.
And, in a unique move, AMP has introduced a liquidity facility for retail investors because of the long-term nature of private capital. It will allow investors to with-draw their money, if they give 12 months prior notice.
AUTHOR
Zilla Efrat
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