AMP Capital (ASX:AMP) retains management of the Wholesale Office Fund

Company News

by Lauren Evans

AMP Capital (ASX:AMP), owned by financial services provider AMP, will remain as manager of the Wholesale Office Fund (AWOF) following a thorough review process to oversee its portfolio.

The trustee board for AWOF said, "it is in the best interests of unitholders as a whole for AMP Capital to continue as trustee and manager of the fund". The fund aims to provide investors with exposure to a portfolio of office assets primarily located in the markets of Sydney and Melbourne.

The decision was made by an independent advisory committee (IAC) and external legal and financial advisers, following a thorough assessment of management proposals received from AMP Capital and two shortlisted competitors.

The decision to retain AMP Capital will include several changes under its proposal, including governance changes, increased manager alignment and reduced fee arrangements.

AMP's total capital support to the real estate business ahead of the planned demerger of AMP Capital’s private markets business will be up to $500 million, the company said. 

“We acknowledge and welcome the trustee board’s decision and thank the directors and IAC for their work. AMP Capital remains committed to managing AWOF, which is leading the MSCI/Mercer office index over one, two-and three-years," said CEO Shawn Johnson.

Shares in AMP (ASX:AMP) are trading 3.3 per cent higher at $1.17.

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