Professional High Growth
Quarterly Investment Option Update
30 June 2015
AIM AND STRATEGY
To provide high returns over the long term through a diversified portfolio investing mostly in Australian and
international shares with some exposure to alternative assets and property.
This option aims to achieve a rate of return above inflation after costs over a 7 year or longer period, and to
provide a total return, after costs and before tax, higher than the return from the relevant benchmark mix index
of the underlying investments.
This option also aims to exceed the Chant West Multi-Manager Survey (High Growth) Median (competitor
universe) on a pre-tax basis.
INVESTMENT OPTION PERFORMANCE*
To view the latest investment performances please visit www.amp.com.au
INVESTMENT OPTION OVERVIEW
Investment category
Diversified – Aggressive
Suggested
investment
timeframe
7 + years
Relative risk rating
High
Investment style
Multi Manager
Vinva Australian Equitised Long-Short Fund
21.44%
Commonwealth Bank of Australia
6.47%
Westpac Banking Corp
4.96%
Telstra Corp Ltd
4.63%
Australia & New Zealand Banking Group Ltd
4.39%
National Australia Bank Ltd
3.89%
BHP Billiton Ltd
2.77%
Macquarie Group Ltd
2.28%
1.83%
1.79%
Asset Allocation
Benchmark (%)
Range (%)
Wesfarmers Ltd
International shares
35.74
20-60
Ramsay Health Care Ltd
Australian shares
41.6
20-60
Alternative assets
(growth)
16.66
0-40
4
0-40
Top Ten International Securities
Direct property
Listed property
Alternative assets
(defensive)
2
0-15
International fixed interest 0
0-15
Australian fixed interest
0
0-15
Cash
0
0-15
Top Ten Australian Securities
AMP Life Limited
ABN 84 079 300 379
%
%
Apple Inc
2.18%
Exxon Mobil Corp
1.03%
Wells Fargo & Company
0.90%
Google Inc
0.79%
Microsoft Corp
0.75%
Nestle SA
0.72%
Johnson & Johnson
0.69%
JPMorgan Chase & Co
0.67%
Procter & Gamble Co/The
0.67%
Novartis AG
0.67%
PORTFOLIO SUMMARY



The Fund returned -2.4% in an unusually difficult quarter for markets.
We reduced the position held in Australian shares favouring Asian share markets during the quarter.
The Fund continues to prefer cash, as opposed to bonds, in the defensive component of the portfolio.
INVESTMENT OPTION COMMENTARY
The Future Directions High Growth Fund returned -2.4% for the June quarter as most major markets sold off
in response to global volatility and macro concerns. Despite retreating markets, the Fund outperformed its
neutral benchmark by 0.5%, with manager selection and dynamic asset allocation decisions adding value.
The Fund’s Australian shares portfolio explained the majority of the Fund’s negative absolute return for the
quarter, as the local market fell around 6.5% in response to falling commodity prices and bank share price
weakness, with nothing positive domestically to offset these influences. However, the downside potential from
domestic shares was restricted by the decision to hold the sector well below benchmark levels. The above
benchmark level allocation to emerging market, specifically Chinese, shares contributed very positively
despite falling late in the quarter. Dynamic allocation decisions in international shares dragged on relative
performance due to the bias towards European shares within the Fund.
Manager selection within the Fund’s alternative asset holdings, in particular, our investment in direct
infrastructure and private equity provided support in the challenging return environment. Direct infrastructure
had the most significant impact during the quarter, largely due to a valuation uplift in our Angel Trains
investment; which recorded a substantial increase since the last off-cycle revaluation in February 2015, up
+104.5%.
OUTLOOK
The Fund’s dynamic asset allocation positions reflect our outlook for markets. In terms of the portfolio’s growth
assets, we continue to prefer international shares, where monetary conditions remain supportive and
economic fundamentals are steadily improving. This is at the expense of Australian shares; the local market is
exposed to lower commodity prices and a subdued economic outlook. We also maintain an above average
weight to absolute return growth strategies; as we seek to provide the Fund with exposure to differentiated
sources of return compared to traditional markets such as shares and bonds. In the defensive component of
the portfolio, we retain our preference to cash and foreign currency on expectations that the Australian dollar
will continue to retreat over the medium term.
Contact us
Web: www.amp.com.au
Phone: 133 267 - Monday to Friday 8.00am to 8.00pm EST
Email: askamp@amp.com.au
What you need to know
This publication has been prepared by AMP Life Limited ABN 84 079 300 379, AFSL No. 233671 (AMP Life). The information contained in this publication
has been derived from sources believe to accurate and reliable as at the date of this document. Information provided in this investment option update are
views of the underlying Investment Manager only and not necessarily the views of the AMP Group. No representation is given in relation to the accuracy or
completeness of any statement contained in it. Whilst care has been taken in the preparation of this publication, to the extent permitted by law, no liability is
accepted for any loss or damage as a result of reliance on this information. AMP Life is part of the AMP Group. In providing the general advice, AMP Life and
AMP Group receives fees and charges and their employees and directors receive salaries, bonuses and other benefits.
The information in this document is of a general nature only and does not take into account your financial situation, objectives and needs. Before you make
any investment decision based on the information contained in this document you should consider how it applies to your personal objectives, financial
situation and needs, or speak to a financial planner.
The investment option referred to in this publication is available through products issued by AMP Superannuation Limited ABN 31 008 414 104, AFSL No.
233060 (ASL) and/or AMP Life. Before deciding to invest or make a decision about the investment options, you should read the current Product Disclosure
Statement for the relevant product, available from ASL, AMP Life or your financial planner.
Any references to the “Fund”, strategies, asset allocations or exposures are references to the underlying managed fund that the investment option either
directly or indirectly invests in (underlying fund). The investment option’s aim and strategy mirrors the objective and investment approach of the underlying
fund. An investment in the investment option is not a direct investment in the underlying fund.
Neither AMP Life, ASL, any other company in the AMP Group nor underlying fund manager guarantees the repayment of capital or the performance of any
product or particular rate of return referred to in this document. Past performance is not a reliable indicator of future performance.
AMP Life Limited
ABN 84 079 300 379