Asian infra investors fuel AMP Capital’s AUM growth

Asian investors’ appetite for infrastructure has been a key factor in driving up AMP Capital’s total assets under management.

Between June 2015 and June 2018, Asian-based investors drove the firm’s AUM up by A$4.5 billion ($3.2 billion; €2.8 billion). More than a third of that growth was related to infrastructure debt and equity strategies, according to the firm.

“Asian investors have played an important role in the fundraising of our infrastructure equity strategy, and there continues to be a strong interest [in the asset class],” Craig Keary, AMP Capital’s director, Asia-Pacific, told Infrastructure Investor.

According to AMP Capital, commitments from Asian investors represent 9 percent of the firm’s total AUM of A$189 billion, or about A$17 billion. The figure amounts to two-thirds of the overall A$25.4 billion the firm manages for global investors based outside Australia and New Zealand.

“Due to the search for stable returns among Asian investors, and the continued maturing of pension systems across the region, there is a really strong demand for real assets across the board, both for debt and equity,” Keary said.

“They recognise the role that real assets have to play in the portfolio, and I don’t see the demand slowing down at any moment,” he added.

Keary said AMP Capital’s “main investors [in the region]” were from Korea and Japan, adding that the firm is starting to see interest coming out of Malaysia as well.

“We try to operate in partnership with our clients. For some of our Korean clients, we have provided not only investment insights, but also given them insights into the evolution of the wealth management industry in Australia,” Keary said, highlighting one of the key drivers in the firm’s regional growth.

In 2013, AMP Capital established China Life AMP Asset Management jointly with China Life, the largest listed life insurer in the world. As of February 2018, CLAAM’s AUM stood at A$36 billion, according to AMP Capital’s website.

AMP Capital invests both in infrastructure equity and debt, and ranks among the top investors in the asset class. Its latest strategy, AMP Capital Global Infrastructure Fund II, aims to raise $3 billion to invest in projects in Europe, North America, and other OECD countries. Last month, Infrastructure Investor reported the fund had held a first close on $1.6 billion.

AMP Capital’s portfolio includes stakes in London’s Luton Airport, New Zealand’s electricity and gas distribution firm Powerco, and Angel Trains, the largest rolling stock company in the UK.