Business & Finance
AMP Says Bonds No Longer a Hedge, Cuts From Some Pension Funds
Key Points
AMP Says Bonds No Longer a Hedge, Cuts From Some Pension Funds AMP Ltd., one of Australia’s top asset managers, has ditched bonds from some of its retirement funds with sovereign debt no longer offering the diversification investors have relied on for decades as a ballast against stock volatility. The fund manager, which oversaw A$162 billion ($112 billion) as at February, no longer holds the securities in its retirement portfolios for younger investors and has cut allocations across other...
AMP Says Bonds No Longer a Hedge, Cuts From Some Pension Funds
AMP Ltd., one of Australia’s top asset managers, has ditched bonds from some of its retirement funds with sovereign debt no longer offering the diversification investors have relied on for decades as a ballast against stock volatility.
The fund manager, which oversaw A$162 billion ($112 billion) as at February, no longer holds the securities in its retirement portfolios for younger investors and has cut allocations across other funds over the past six to 12 months, according to Chief Investment Officer Anna Shelley. Instead, it has shifted toward corporate credit while seeking greater exposure to commodities and agriculture to better diversify portfolios.