AMP Capital's Total Return Fund, a leveraged, Multi Strategy, Global Fund of Funds with $979 million in funds under management, returned -13.21% in October, bringing 2008 YTD performance to -18.61%.
The Manager reported that the majority of underlying strategies in the fund experienced losses in October due in part to continued liquidation occurring in hedge funds globally. In particular managers in the leveraged loan market, distressed, special situations and macro strategies all contributed to the losses. On the positive side were commodity strategies and some sector specialist funds.
AMP reported they were reducing exposures to various strategies to lower risk, whilst also noting that they have adjusted their Australian dollar hedge position to act as a buffer against negative manager performance.
