Sydney headquartered AMP Capital’s Dynamic Markets Fund has grown to A$1 billion in funds under management, reaching the milestone in less than five years.

The fund, which is run by AMP Capital Head of Dynamic Asset Allocation Nader Naeimi and supported by Head of Investment Strategy and Chief Economist Shane Oliver, was established in March 2011 to meet the needs of investors concerned about achieving their investment goals in the face of increasing market volatility.

A lower cost and lower volatility alternative to broader equity markets, the fund’s asset allocation is dynamic and flexible, moving with markets across a range of asset classes with the aim of delivering more stable returns over time. Its transparent reporting structure and engaging communication approach means advisers and clients can see how the fund changes investment strategy in response to moving markets.

AMP Capital Head of Dynamic Asset Allocation Nader Naeimi noted: “The fund’s dynamic and flexible approach to asset allocation involves negotiating the ups and downs of the market cycle. Essentially, it aims to buy into under-priced, unloved opportunities and sell out of overpriced, over-loved situations. This provides particular comfort to investors who may be concerned about market volatility and seek smoother returns over the long term.

“Markets that are undervalued, under owned and oversold tick our box. The aim isn’t to buy good assets and sell bad assets but to buy assets well and sell assets well. Sometimes things can be so good they’re bad, and sometimes they can be so bad they’re good. You have to have the process and conviction, but you also have to have the art to see what matters when.”

The Dynamic Markets Fund attracted its first institutional mandate in October 2011 and was made available to retail investors in March 2014. The fund has attracted around $600 million in retail FUM since it was launched last year.

AMP Capital Head of Investment Strategy and Chief Economist Shane Oliver said: “I’m thrilled the Dynamic Markets Fund has reached this milestone in such a short amount of time. We established the fund because clients told us they were looking for new and different ways of investing more in line with meeting their investment goals. Through DMF, we have been able to present an alternative to traditional funds for both institutional and retail investors and it has been successful in both markets.”