The new investment solution will provide bespoke access to global private debt investments in developed markets.
Currently, the total volume of institutional assets under management allocated to private debt is estimated to be around US$1.7 trillion globally1 of which close to A$200 billion is estimated to be Australian2.
AMP’s Alternative Debt Fund, a new standalone strategy, can be accessed by members of AMP’s Super Fund invested in the MySuper or Future Directions options range. It will be part of the Diversified Credit sector and will complement AMP’s existing range of diversified investments, providing valuable exposure to private markets. AMP will commit $300 million initially into the Fund with the assets expertly managed through two external managers providing exposure to:
Credit Risk Transfer – Purchasing Credit Risk Notes from issuing banks insuring the first loss on a diversified pool of high-quality loans, providing regulatory capital relief to the banking institution to maintain their relevant Tier 1 capital ratios.
Flexible Credit Solutions – Wide remit to take advantages of opportunities in Special Situations, Distressed Credit, Short-Term and Long-Term opportunistic lending.
The new fund’s allocation is spearheaded by AMP’s Private Markets team with its implementation supported by AMP Investments, Product and Operations teams. The strategy, which aims to generate higher long term returns with a lower correlation to the listed markets, will help set AMP’s diversified investment options up for future success.
AMP Chief Investment Officer, Anna Shelley, said:
“We’re excited to be providing our super fund members with bespoke access to global private debt investments in developed markets. This is a whole of team effort to successfully deliver a unique, new investment solution - one that will help bolster our existing range of diversified investments, providing flexibility and choice for our members.”
“By combining credit risk sharing with more of an opportunistic strategy, AMP is paving the way forward for standalone international private debt strategies that can deliver for our members and customers over the long term with valuable exposure to private markets.”
“The new funds also provide complementary exposures to the existing leveraged buyout financing and Australian-based direct credit investments AMP implemented in 2022.”
