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Rebate Offer
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4.1% (100%)
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Minimum Initial Investment
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$30,000
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Expected Close Date
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Ongoing
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The AMP Capital Corporate Bond Fund provides access to investment grade rated corporate bonds in the Australian market, seeking fixed interest securities from companies with strong balance sheets and high quality management diversified across industries and securities. The Fund aims to provide investors with regular monthly income, and has produced regular income since its inception in November 1997^.
A corporate bond is characterised by a higher return profile due to perceived higher risk, relative to government bonds. Many bonds are independently rated by companies such as Standard & Poor's on their ability to repay the principal on its debt as well as interest. AMP Capital Corporate Bond Fund is actively managed to mitigate the risk of default. The AMP Capital Fixed Income team undertakes their own shadow-rating assessment of credit securities with limited reliance on external ratings. Active management also has the potential to add value through sector and stock selection. And in a changing market environment, it allows tactical allocation within sectors, with the potential for value add between cyclical versus non-cyclical industries or investment-grade versus non-investment grade bonds.
Key Benefits:
- Regular income: Corporate bond investors typically have a higher security of income than ordinary shareholders. In the event of financial difficulties, interest payment to bond investors may receive higher priority than dividends to shareholders.
- Diversification: Across over 50 industry sectors and thousands of securities both locally and internationally.
- Higher returns than government bonds: Corporate bonds often offer higher returns than government bonds due to higher risk.
AMP Capital's scale and size in the Australian market means that they are considered for participation in many new bond issues. They often have first or exclusive access to deal flow enables them to directly negotiate favourable prices, terms and conditions for investors. Further, in response to recent adverse market conditions, bond issuers are being more responsive to the needs of their lenders by way of improved covenants and underwriting standards.
| Fee Disclosure | | 2020 DIRECTINVEST will waive the 4.1% entry fee that would normally be charged by financial advisers on investments in the AMP Capital Corporate Bond Fund. 2020 DIRECTINVEST may receive a trailing commission of up to 0.227% pa. This is paid by the fund manager and is NOT an additional charge to the investor. |
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Past performance is not a reliable indicator of future performance. |
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