January, 2021
The Fund had a small positive return in January. The Fund had a strong start to the month but experienced a slight setback later in the month as concerns over a possible spill over from the short squeeze in the US, together with renewed COVID19 worries, impacted the markets. Markets are early in the transitional process from dislocation to normalisation, a process which will continue to benefit the economically sensitive laggards. However, this won't happen in a clear smooth line and there will be volatility.
The setback in January in response to the increased uncertainty over the vaccine supply, distribution and mutation was a case in point. However, the recent pullback should set the springboard for the next leg higher in cyclical value relative performance. The Fund maintained its core positions over the month including: long inflation / short volatility positioning through a long position in cyclical value sectors as well as commodities, overweight equities versus underweight allocations to sovereign bonds, overweight allocations to non-US (Europe and emerging markets) versus an underweight allocation to US equities, short technology, and no exposure to defensive bond proxies. We continue to position for further curve steepening. The countertrend trend rally in the US dollar rally is maturing and we are starting to reinstate short US dollar positions.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ffs-wdaa_a.pdfasset_class: Multi-Asset
asset_category: Real Return
peer_benchmark: Multi-Asset - Real Return Index
broad_market_index: Multi-Asset Growth Investor Index
manager_contact_details: Array
ticker: AMP1932AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
Latest Performance Report
fund_features:
AMP Capital Dynamic Markets Fund aims to provide a total return (income and capital growth), before costs and before tax, of 4.5% pa above inflation (the Reserve Bank of Australia inflation rate (Consumer Price index) – trimmed mean), on a rolling 5 year basis.
- It adopts a flexible approach to asset allocation invests across a range of traditional asset classes such as shares, listed property, fixed income, credit and cash aims to produce investment returns through the use of dynamic asset allocation.
- Invests across a range of traditional asset classes such as shares, listed property, commodities, fixed income, credit and cash.
- Uses derivatives for implementing the investment objectives of the Fund and enhancing returns, and has exposure to risks including those associated with share market and international investments and derivatives.
structure: Managed Fund