The $300 billion profit-to-member fund has linked up with Oxford Properties for a portfolio of high-quality European industrial and logistics assets that it wants to expand significantly over the next three to five years.
Australia’s megafunds are looking to international asset owners for ideas on how to invest what will soon be trillions in retirement savings. But banks – with their sharp focus on efficient implementation and balance sheet management – could also be a source of inspiration.
Liquidity bites as AMP property funds delay redemptions
AMP Capital has delayed by a month the payment of applications for redemptions from two of its wholesale property trusts for applications received since March 16. And the redemption amounts to be paid will be staggered over the next year.
AMP Capital announced to unit holders last week an update to the redemption requests for the funds: NML0001AU – AMP Capital Wholesale Australian Property Fund; and NML0337AU – AMP Capital Australian Property Fund. The fund manager did not explain the delays, which are presumably due to liquidity issues. The funds have performed well for a long time.
The client note said: “AMP Capital have (sic) advised that any redemption requests from these funds received since 16 March 2020 will now be processed on 15 June 2020, rather than 15 May 2020 as previously communicated.
“For any redemption requests being processed on 15 June 2020, AMP Capital will pay amounts up to 20% of our investment in the fund on 10 August 2020, and any amounts above the 20% on 10 March 2021. This may result in requests being partially fulfilled on 10 August 2020, with the remaining proceeds received on 10 March 2021. Please note that once a request to redeem from the fund(s) have been submitted to North [the administration platform], we’re unable to cancel the request.”
To AMP Capital’s credit, it is clear from the PDS for the two funds that liquidity would not necessarily allow for immediate access to the funds. They are long-term investments and have paid a healthy liquidity premium in the past few years. But, of course, zealous sales people often overlook those parts of a document while pitching to clients and prospects.
One wonders whether Senator Andrew Bragg, the NSW Liberal backbencher who has been attacking not-for-profit super funds over potential liquidity issues due to the Government’s early access to super scheme – attacks which have been roundly disputed – has seen the AMP notice. He has more-than dabbled in property himself, having paid $4.675 million for a house in Paddington, Sydney, shortly after being elected last year. We’re all in this together aren’t we?
– G.B.
