Investment firm AMP Capital has launched a new long-only fund that will invest in a concentrated portfolio of companies based on current or anticipated cash generation.
The AMP Capital Global Equity Fund will invest in between 25 and 35 companies, with a long-term investment horizon with low portfolio turnover, the company said.
AMP Capital global chief investment officer for equities David Allen said the fund, which will look for tailwinds and thematic drivers, “represents a highly differentiated investment opportunity” with a focus on absolute outcomes rather than a benchmark.
“We’ve taken a high-conviction approach, investing in a small number of exceptional companies with outstanding prospects, that have dependable and persistent cash-backed returns on capital,” he said.
“As we are not bound to a benchmark, sector or country, these are names that we think are the best stocks globally and will deliver the performance to meet our clients’ goals.”
AMP Capital said it intends to create more global equity products “in the coming years”, and described the AMP Capital Global Equity Fund as its “inaugural fund” in its global equities range.