Investment manager AMP Capital has started its new Dynamic Asset Allocation Fund with a $30 million mandate from the WA Local Government Superannuation Plan.
The new fund is targeted at the institutional market and was established in response to increasing market volatility.
It offers a flexible allocation between growth and defensive asset classes over a medium-term investment period.
The fund aims to provide investors with long-term growth by investing in stocks, including developed and emerging markets, managed funds, real estate investment trusts, bonds, derivatives and cash.
Dynamic asset allocation enables investors to stabilise risk over time with its ability to diversify its asset mix in order to enhance returns.
The dynamic asset allocation investment solution harnesses the market views of AMP Capital's multi-asset group.
"AMP Capital's dynamic asset allocation process employs a diversified framework across several drivers of market return, and asset allocations have a greater flexibility to change according to market outlook compared to a typical diversified portfolio," AMP Capital senior investment strategist and portfolio manager Nader Naeimi said.
"It utilises the research which has been developed over the past 10 years, employed across a range of diversified mandates."
The WA Local Government Superannuation Plan has more than 43,000 members and $1.5 billion in assets.
