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AMP Capital shutters dud fund, Naeimi departs

AMP Capital has shut down the AMP Capital Dynamic Markets Fund, launched by Shane Oliver in 2011, following poor performance.

A spokesperson for AMP Capital confirmed to Financial Standard that the fund will be terminated.

Dynamic Markets Fund portfolio manager Nader Naeimi will depart AMP Capital as his role is no longer required, the spokesperson confirmed.

Naeimi has been with AMP Capital for 21 years and has been portfolio manager for the Dynamic Markets Fund since 2015.

The troubled $180 million fund was recently downgraded to "investment grade" by Lonsec.

Oliver was initially involved with the fund but AMP Capital said recently his involvement has been limited to providing economic and market insights for the multi-asset fund.

He has not had portfolio management responsibilities for the fund for more than five years, since Naeimi took over.

"Launched in 2011, AMP Capital's Dynamic Markets strategy was actively managed both in terms of asset allocation and currency hedging and took advantage of market mispricing around the world to generate growth," the spokesperson said.

"Dynamic Markets Fund has been under review for some time. The fund's assets under management have reached a low level and given the fixed operating expenses, will likely lead to an increase in management costs impacting the fund's ability to deliver cost-effective returns.  Closing the fund is in the best interests of investors in Dynamic Markets Fund."

The fund performance relative to peers was cited by AMP Capital as the reason for the fund shutdown, with returning capital to investors decided as the most pragmatic course of action. It is understood that falling assets under management meant fixed costs were likely to impact investor returns.

The fund suffered in February and March 2020 but its performance had since climbed back, according to Morningstar data. The most recent fund update shows it returned 23.67% year on year in March 2021, and 5.71% gross of fees since inception for wholesale investors. Its objective was 6.47% since inception.

Read more: AMP CapitalAMP Capital Dynamic Markets FundShane OliverLonsecNader Naemi