AMP Monthly Income Fund No.2
Quarterly Investment Option Update
31 December 2015
Aim and Strategy
Aim and strategy: To provide for a distribution rate of 0.75% per month and to achieve an underlying balance of
capital growth and income over the medium to long term, primarily through a diversified portfolio of shares, property,
fixed interest, and cash.
Investment Option Performance
To view the latest investment performances please visit www.amp.com.au
Availability
Top Ten Australian Shares Exposure
Distribution Rate 0.75% per month
%
Commonwealth Bank of Australia
9.29
Product name
APIR
Westpac Banking Corp
8.82
Flexible Lifetime Investment
GIO0002AU
Australia & New Zealand Banking Group Ltd
5.85
Flexible Lifetime Investment (Series 2)
AMP1443AU
National Australia Bank Ltd
5.81
Telstra Corp Ltd
5.55
BHP Billiton Ltd
3.51
Wesfarmers Ltd
3.45
Macquarie Group Ltd
2.36
CSL Ltd
2.31
Woolworths Ltd
2.00
Investment Option Overview
Investment category
Diversified - Moderately
Conservative
Suggested investment
3 - 5 years
timeframe
Relative risk rating
Low - Medium
Investment style
Active
Top Ten International Shares Exposure
%
Microsoft Corp
1.93
INTEL CORP
1.43
PayPal Holdings Inc
1.42
Asset Allocation
Benchmark Range (%)
Visa Inc
1.39
Australian Shares
44
22-50
APPLE INC
1.38
Global Shares
3
0-5
Alphabet Inc
1.35
Australian Property
8
0-15
QUALCOMM Inc
1.32
Lowe's Cos Inc
1.26
25-50
CVS Health Corp
1.25
5-15
HOME DEPOT INC
1.18
Global Property
Australian Bonds
Cash
AMP Life Limited
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34
11
Actual Allocaiton
%
Australian Equities
42.62
Australian Fixed Interest
31.82
Cash
13.22
International Shares
7.96
Listed Property
4.38
Direct Property
0.00
Investment Option Commentary and Outlook
The Monthly Income Fund No. 2 returned 2.6% for the December quarter, as the Australian equity market recovered all its losses
from the previous quarter.
Despite concerns over China and emerging markets, mixed economic data and continuing low commodity prices, Australian
equities recorded a very strong run over the period, and with almost half of the Fund invested in the sector; it made the largest
contribution to total returns. Positive performance in global developed equities also supported fund returns, as the US Federal
Reserve raised interest rates for the first time in seven years in a vote of confidence for the economy.
Almost all other sectors within the Fund’s portfolio provided positive absolute returns, led by Australian and international listed
property which has benefited greatly from investors’ continued search for yield. Fixed interest assets were the exception, weighing
on Fund returns as Australian bonds underperformed the wider market.
We maintain focused on our position in income generating assets and thus remain heavily invested in Australian equities and
bonds, with smaller tactical positions in listed property portfolios, where yields also remain relatively attractive. The Fund also
holds an above-average weight to international equities, as global valuations remain attractive compared to the local market,
which is still exposed to lower commodity prices and a subdued economic outlook.
Contact Us
Web: www.amp.com.au
Email: [email protected]
Phone: 131 267 (Mon. to Fri. 8:30am to 6:00pm AEST)
What you need to know
This publication has been prepared by AMP Life Limited ABN 84 079 300 379, AFSL No. 233671 (AMP Life). The information contained in this publication has been
derived from sources believe to accurate and reliable as at the date of this document. Information provided in this investment option update are views of the underlying
Investment Manager only and not necessarily the views of the AMP Group. No representation is given in relation to the accuracy or completeness of any statement
contained in it. Whilst care has been taken in the preparation of this publication, to the extent permitted by law, no liability is accepted for any loss or damage as a
result of reliance on this information. AMP Life is part of the AMP Group. In providing the general advice, AMP Life and AMP Group receives fees and charges and
their employees and directors receive salaries, bonuses and other benefits.
The information in this document is of a general nature only and does not take into account your financial situation, objectives and needs. Before you make any
investment decision based on the information contained in this document you should consider how it applies to your personal objectives, financial situation and needs,
or speak to a financial planner.
The investment option referred to in this publication is available through products issued by AMP Superannuation Limited ABN 31 008 414 104, AFSL No. 233060
(ASL) and/or AMP Life. Before deciding to invest or make a decision about the investment options, you should read the current Product Disclosure Statement for the
relevant product, available from ASL, AMP Life or your financial planner.
Any references to the “Fund”, strategies, asset allocations or exposures are references to the underlying managed fund that the investment option either directly or
indirectly invests in (underlying fund). The investment option’s aim and strategy mirrors the objective and investment approach of the underlying fund. An investment in
the investment option is not a direct investment in the underlying fund.
Neither AMP Life, ASL, any other company in the AMP Group nor underlying fund manager guarantees the repayment of capital or the performance of any product or
particular rate of return referred to in this document. Past performance is not a reliable indicator of future performance.
AMP Life Limited
84 079 300 379