Colonial First State Australian
Share
Quarterly Investment Option Update
31-March-2015
Availability
The strategy of the portfolio is to generally invest in high quality
companies with strong balance sheets and earnings. The
portfolio predominantly invests in Australian companies and
therefore does not hedge currency risk.
Product name
APIR
AMP Flexible Super – Choice (Retirement)
AMP1341AU1
AMP Flexible Super – Choice (Super)
AMP1470AU1
CustomSuper
AMP0766AU1
Flexible Lifetime – Allocated Pension
AMP0625AU1
Suggested Investment Timeframe: 5+ years
Flexible Lifetime – Investments (Series 1)
AMP0833AU1
Relative Risk Rating: High
Flexible Lifetime – Investments (Series 2)
1
AMP1406AU
Investment category: Australian equities
Investment Style: Growth
1
Flexible Lifetime – Super
AMP0766AU
Flexible Lifetime – Term Pension
AMP0918AU1
MultiFund Flexible Income Plan
AMP0763AU1
Signature Super
AMP0791AU1
Signature Super – Allocated Pension
AMP1145AU1
Asset Allocation
Benchmark (%)
Range (%)
Australian Shares
100%
90-100%
Cash
0%
0-10%
1
This option is closed to new investors only.
Investment Option Performance
Investment performances are subject to product fees and
where relevant tax as outlined in the product PDS. Therefore
investment performance may differ between products. In
addition, activity on your account such as contributions and
deductions will also impact the investment performance specific
to you. To view the latest investment performances for each
product, please visit www.amp.com.au. You can also view the
last investment performance specific to you by visiting your My
Portfolio account.
Holdings
Industry Exposure
%
Financial Ex Property
34.29%
Materials
19.34%
Industrials
8.65%
Consumer Discretionary
8.50%
Health Care
8.50%
Telecommunication Services
6.03%
Consumer Staples
5.98%
Energy
3.67%
Contact Us
Property
2.73%
Web: www.amp.com.au
Information Technology
2.37%
Email: [email protected]
Phone: 133 267 (Mon. to Fri. 8:30am to 6:00pm AEST)
Overview
Aim & Strategy: To provide long term capital growth with some
income by investing in a broad selection of Australian
companies. The investment manager’s “Growth” approach is
based on the belief that, over the medium-to-long term, stock
prices are driven by the ability of management to generate
excess returns over their cost of capital in their chosen industry.
AMP Life Limited
ABN 84 079 300 379
Top Ten Securities
%
Commonwealth Bank of Australia
10.45%
Westpac Banking Corp
8.85%
BHP Billiton Limited
8.09%
ANZ Banking Group
5.69%
CSL Ltd
5.63%
Transurban Group
4.51%
Westfarmers Ltd
4.48%
National Australia Bank Ltd
4.28%
Telstra Corp Ltd
3.88%
James Hardie Industries NV
3.27%
rallied in the second half of January following a
positive second-quarter results announcement.
Outlook
Balance sheets remain strong on the whole; an average
net debt to equity ratio below 40% among ASX-listed
companies is low relative to history. As a result,
companies can consider acquisitions in order to drive
growth – TPG Telecom’s takeover approach for iiNet,
for example – or pursue capital management initiatives
such as share buybacks or special dividends. Both
strategies should underpin valuations for well
capitalised companies.
Australian equities performed well in the March quarter
of 2015, with the S&P/ASX 300 Accumulation Index
rising in value by more than 10%.
The direction of the Australian dollar is likely to have a
stock-specific bearing on market sentiment. Companies
with offshore-denominated earnings, such as
Henderson Group, Aristocrat and ResMed, are
benefiting from currency weakness. This trend could
continue if Australian interest rates are lowered and
monetary policy starts being tightened in the US, as
anticipated later in 2015.
Most ASX-listed companies published their results for
the six or 12 months ending 31 December 2014 during
February. As anticipated, only a few companies
announced significant revenue improvements. There
remains a heightened focus on cost control among
Australian businesses, which is supporting a modest
level of earnings growth in the market as a whole.
The weaker Australian dollar continues to encourage
foreign capital into the equity market, particularly
following quantitative easing programs in Europe and
Japan. It is also encouraging overseas corporates to
look for acquisition targets among ASX-listed
companies, as seen in February when Japan Post
made a takeover bid for Toll Holdings.
Market Commentary
Dividends remained reasonably high and some
companies used balance sheet strength to return cash
to shareholders. Amcor, Boral, Orica and Rio Tinto, for
example, announced share buyback programs, while
Leighton Holdings and Oil Search announced special
dividends.
Investment Option Commentary
The Fund’s overweight position in global investment
management company Henderson Group was the top
contributor to relative performance. The company
followed European equity markets higher, as they were
boosted by the start of the European Central Bank’s
quantitative easing policy, lower bond yields and
tentative signs of improved economic conditions in core
countries.
Gaming machine company Aristocrat Leisure made a
valuable contribution to relative performance. The
company held an investor day at the end of March,
where management reiterated an upbeat outlook for the
company. Aristocrat continues to increase its share of
recurring revenue in North America and is gaining
exposure to the growing gaming market in Asia.
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
Health Care company ResMed was among the top
contributors to relative performance. The share price
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
ABN 84 079 300 379