AMP Capital has launched a Luxembourg-domiciled UCITS platform, which will offer UCITS versions of its Global Listed Infrastructure Fund and Global Real Estate Securities Fund to UK and European institutional investors.
A UCITS (Undertakings for Collective Investment in Transferable Securities) platform is an investment vehicle that enables fund managers to more easily distribute their products across Europe and Asia to offshore investors. According to the European Fund and Asset Management Association, UCITS product structures represent 71 per cent of the total European funds management industry.
The platform has been launched with US$156 million in assets under management, which will be split equally between the two strategies.
The UCITS-compliant funds deploy the same investment approach and strategy as AMP Capital's existing listed infrastructure and real estate funds. They have been added to the newly-launched UCITS platform following increasing demand from global institutional clients for pooled fund exposure to these capabilities. The funds will be available to investors in the UK, the Netherlands and Luxembourg initially, with plans to expand into other jurisdictions in Europe and Asia.
AMP Capital CEO International and Head of Global Clients Anthony Fasso said:
"AMP Capital has more than 25 years' experience investing in both real estate and infrastructure. The establishment of a UCITS platform is a key step in our continued commitment to further develop AMP Capital's offering in Europe given UCITS is the dominant investment structure in this region. We are pleased to bring the AMP Capital Global Listed Infrastructure Fund and the AMP Capital Global Real Estate Securities Fund to a broader investment audience in response to investor demand."
AMP Capital's UK Institutional Director Louisa Yeoman added:
"The launch of the UCITS platform with an initial focus on these two asset classes reflects the increase in allocations to alternatives, particularly real assets, by global institutional investors. We are in advanced discussions with a number of institutional investors to support this launch and anticipate continued momentum as investors increasingly look for investments with the potential for capital growth and predictable, consistent, yields. We plan to add further strategies to our UCITS platform over time."
The AMP Capital Global Listed Infrastructure Fund and the AMP Capital Global Listed Real Estate Securities Fund both provide investors with access to a global portfolio of securities that are diversified across regions and sectors.
The infrastructure fund, which has US$897 million in funds under management (as at 31 March 2014) and a three-year track record, focuses on energy infrastructure (including electricity transmission and distribution, and oil and gas transportation and storage); transportation infrastructure (including toll roads, airports and ports); communications infrastructure (satellites and mobile communications towers) and water infrastructure. The investment team is located in London, Chicago and Sydney.
Meanwhile, the real estate fund provides access to a global portfolio of real estate investment trusts and listed property securities and is focused on Europe, the Americas and Asia Pacific. The fund has US$5.9 billion in funds under management (as at 31 March 2014) and a 12-year track record. Its investment team is located in London, Chicago, Hong Kong and Sydney.