• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • Subscribe
  • Twitter
  • RSS Feed

Investment News NZ

Investment News provides financial advisers news stories from the financial industry in New Zealand. Subscribe to our free weekly newsletter.

  • Home
  • News
  • Kiwisaver
  • Subscribe
  • About
  • Advertise
  • Contact
You are here: Home / Investment News / NZ commodities funds shutter

NZ commodities funds shutter

February 14, 2021

Rebekah Swan: AMP Capital NZ managing director

AMP Capital NZ is to wind up its approximately $90 million Commodities Fund after nine years in operation.

Launched in 2012, the AMP Capital Commodities Fund has faced stiff market headwinds almost since launch for the alternative asset class with many investors ultimately folding after years of negative returns.

While the AMP Capital commodities strategy consistently outperformed its Bloomberg benchmark, the index returned -3.24 per cent over the five years to the end of last September and almost -10.2 per cent over the annual period.

According to the latest Melville Jessup Weaver (MJW) investment survey, since inception the AMP Commodities Fund is down -3.8 per cent. The fund has about halved in size since July 2018 when it held over $171 million.

The manager has closed the commodities product to new investment pending “completion of the wind up process”, slated for May 6 this year.

In a note to investors, AMP Capital NZ managing director, Rebekah Swan, said the commodities exit followed “a strategic review which shows that it is no longer viable to continue to run this Fund”.

Investors can cash-out of the commodities fund any time up until close-of-business May 6 (incurring a 0.15 per cent spread) when all remaining units will be redeemed.

Boutique manager, Pathfinder, also recently closed its long-running commodities fund for similar reasons. Prior to disestablishment, the Pathfinder commodities product had dropped well below $1 million in funds under management.

Ironically, the exit of the two NZ-based commodities funds from the market coincides with an uptick in the asset class itself.

The AMP Capital fund, for instance, notched up one of its best quarters in many years during the last three months of 2020, up over 10.3 per cent in the period and almost 5.5 per cent in the month of December alone. According to the September 30 fund update, the AMP Capital commodities strategy had allocated over 15 per cent to cash.

Last week Bloomberg reported the commodities sector was primed for a “consumption boom, piling pressure on precarious supply chains and boosting raw material prices” as economies emerged out of pandemic conditions.

“Commodities have been on a tear since March, and have surged to the highest level in more than six years, with rallies in everything from iron ore to soybeans, copper and corn,” the Bloomberg report says. “Goldman Sachs Group Inc., Bank of America Corp, and Ospraie Management LLC are among institutions that have endorsed raw materials as investment plays and predict they have more room to climb.”

 

Print Friendly, PDF & Email
Twitter0
LinkedIn0
Google+0
Facebook0

Read More » Investment News

Recent articles

  • Buyer interest tipped for AMP Capital listed funds; Nikko Australian sale leaves NZ untouched March 7, 2021
  • Mixed doubles: MSCI and Microsoft partner for investment service game March 7, 2021
  • Licensing splurge adds 400 in last dash for FSLAA March 7, 2021
  • Vanguard wakes up to bond benchmark ESG exclusion error March 7, 2021
  • Bloomberg opens new chapter on female influence in Australasian asset management March 7, 2021
  • NZ Super goes up the alternatives spectrum, cuts Israeli banks, dampens return expectations, changes guard March 7, 2021
  • Metrics cooks up credit PIE for NZ wholesale market March 7, 2021
  • Harbour takes beta fund full passive; Dimensional cuts fees again, wins over ETF fans March 7, 2021
  • Salt economist warns on inflation shake-out March 7, 2021
Finished reading? Why not subscribe? To receive a weekly email enter your email address here.

Primary Sidebar

WEEKLY NEWSLETTER

Sign up here to receive our weekly newsletter.
Learn More »

Investment News

  • Buyer interest tipped for AMP Capital listed funds; Nikko Australian sale leaves NZ untouched March 7, 2021
  • Mixed doubles: MSCI and Microsoft partner for investment service game March 7, 2021
  • Licensing splurge adds 400 in last dash for FSLAA March 7, 2021
  • Vanguard wakes up to bond benchmark ESG exclusion error March 7, 2021
  • Bloomberg opens new chapter on female influence in Australasian asset management March 7, 2021
  • NZ Super goes up the alternatives spectrum, cuts Israeli banks, dampens return expectations, changes guard March 7, 2021
  • Metrics cooks up credit PIE for NZ wholesale market March 7, 2021
  • Harbour takes beta fund full passive; Dimensional cuts fees again, wins over ETF fans March 7, 2021
  • Salt economist warns on inflation shake-out March 7, 2021
  • KiwiSaver soars close to $80bn in December quarter, boutiques fly high March 7, 2021

Search by Keyword

Most Recent Investment News

Buyer interest tipped for AMP Capital listed funds; Nikko Australian sale leaves NZ untouched

March 7, 2021

Mixed doubles: MSCI and Microsoft partner for investment service game

March 7, 2021

Licensing splurge adds 400 in last dash for FSLAA

March 7, 2021

Vanguard wakes up to bond benchmark ESG exclusion error

March 7, 2021

Bloomberg opens new chapter on female influence in Australasian asset management

March 7, 2021

Investment News Archive

Most Popular Articles

  • NZ share-trading splurge could trigger tax alarms… posted on October 5, 2020
  • Westpac NZ flags retail advice sale to Forsyth Barr posted on October 19, 2020
  • Flint set to spark platform competition posted on August 17, 2020
  • The horror year in technicolour: free KiwiSaver 13 report released posted on September 30, 2020
  • Four to the core: Smartshares to expand, rearrange and reprice ETFs posted on June 22, 2020
  • Kitset KiwiSaver scheme set to unwrap in spring posted on April 27, 2020
  • NZ Funds directors back on board posted on April 24, 2016
  • Funds eye bargains, self-shoppers hoard cash, KiwiSavers turn conservative posted on March 15, 2020

Sponosored Content

David-Boyle

Jumping lessons: what all investors can learn from GameStop loss

What do ‘Kiwi’ experts see for 2021?

David-Boyle

On the industry play-list: four chart-topping regulations for 2021

David-Boyle

Charge of the lite (advice) brigade

Quick-links to Popular News

  • FAP Compliance
  • Coronavirus
  • New Appointments
  • Financial Markets Authority (FMA)
  • Kiwisaver
  • Climate Change
  • Crypto Currency
  • Blockchain
  • Insurance

Secondary Sidebar

Recent News

  • Buyer interest tipped for AMP Capital listed funds; Nikko Australian sale leaves NZ untouched March 7, 2021
  • Mixed doubles: MSCI and Microsoft partner for investment service game March 7, 2021
  • Licensing splurge adds 400 in last dash for FSLAA March 7, 2021
  • Vanguard wakes up to bond benchmark ESG exclusion error March 7, 2021
  • Bloomberg opens new chapter on female influence in Australasian asset management March 7, 2021
  • NZ Super goes up the alternatives spectrum, cuts Israeli banks, dampens return expectations, changes guard March 7, 2021
  • Metrics cooks up credit PIE for NZ wholesale market March 7, 2021
  • Harbour takes beta fund full passive; Dimensional cuts fees again, wins over ETF fans March 7, 2021
  • Salt economist warns on inflation shake-out March 7, 2021
  • KiwiSaver soars close to $80bn in December quarter, boutiques fly high March 7, 2021

Footer

Copyright ©2020 InvestmentNews.co.nz — All Rights Reserved ·— Terms & Conditions