AMP's Core Property Fund has been awarded a five star badge from Standard & Poor's - a sustained rating since S&P conducted its review 12 months ago.

The AMP Core Property Fund (ACPF) is a hybrid property fund that invests in global and domestic wholesale direct-property funds and global listed property funds, all of which AMP Capital Investors (AMPCI) manages. The fund also invests in an externally managed domestic listed-property fund, and a directly held industrial asset.

"The core property fund has a number of standout features among S&P's rated peer group, including low gearing, a sustainable distribution policy, a high-quality underlying investment portfolio, strong diversification, a competitive fee structure, and well-regarded investment and property-management teams," said S&P Fund analyst Kelly Napier.

Since its last review 12 months ago, the fund has remained true-to-label and experienced strong inflows, despite the recent market conditions, said the ratings house. The investment team of Damian Fitzpatrick and Michael Winnel continues to be responsible for the fund.

S&P's product report noted that the fund holds a "high quality underlying property portfolio", along with low levels of overall fees and a flexibility to take advantage of actual or expected changes in the relative performance between direct and listed property.

"We positively view the continuation of the six-monthly revaluation cycle for the majority of underlying assets in softening market conditions, and the fund operates under a strong risk-management framework," according to the report.

"The fund's rating reflects our very high conviction in this fund's ability to deliver risk-adjusted returns relative to peers. [It] also reflects our confidence in AMP Capital Investors' ability to manage the fund in the best interests of investors in what is currently a difficult market environment," said Napier.