Australia’s AMP Capital launches Asia quant strategy

21 May 2014   Category: News, Asia, Australia, Global   By Daniel Shane

AMP Capital, the Australian investment manager with over A$142 billion (US$132.13 billion) in AUM, has launched a quantitative investment fund targeting Asian markets.

The market neutral AMP Capital Asia Quant Fund has launched with US$25 million in assets and will have an investible universe of more than 800 equities across five countries. It will be run by the team behind AMP Capital’s Australian multi-strategy funds, which manages more than US$14 billion in assets across strategies including value, active quant, enhanced index and long/short.

AMP Capital said that during market testing the Asia quant fund had established a two-year track record of long/short investing in Hong Kong, Singapore, Taiwan and South Korea.

“AMP Capital’s point of difference is that we combine the quant technique of seeking alpha from long-standing behavioural biases with fundamental insights,” said AMP Capital co-head of multi strategy equity funds Mark McClatchey in a statement. “This hybrid approach allows us to capture the returns from value and momentum signals but we also take into account the stock-specific risks that traditional quant investors tend to overlook. This approach delivers the best risk-adjusted outcomes for our investors.”

AMP Capital added that the quant fund would be targeted at institutional investors such as family offices, pension funds and sovereign wealth funds seeking alpha in Asian markets.

According to the findings of a study commissioned by BlackRock last year, quantitative investment strategies are increasing in popularity among Asia’s institutional asset owners, although lesser so than in the US.

The report, conducted alongside Greenwich Associates, found that one-third of a sample of 44 institutional asset owners use these investment strategies, compared with 82% in the US. The research noted though that they are expected to increase their usage in the next three years.