AMP Capital sees strong demand for passive funds

It already offers a range of passive funds for wholesale clients seeking low-cost exposure to listed markets.

But it said the new move for retail investors was in response to increasing demand for strategies offering broad market exposure with low operating expenses.

The new funds include the All Country Global Shares Index Fund, which aims to provide a return that closely matches the return of the MSCI All Country World Index ex Tobacco Index; the NZ Shares Index Fund, which aims to provide a return that closely matches the return of the S&P/NZX 50 Index; and the Hedged Global Fixed Interest Index Fund, which aims to provide a return that closely matches the Bloomberg Barclays Global Aggregate Bond Index (this fund also excludes Tobacco), fully hedged to the New Zealand dollar.

At the same time the minimum investment amount for retail investors has been lowered to $50 from $2000, and the funds will pay a distribution every six months. The funds are PIE-compliant.