AMP confident in Aust.

Press, 27 July 1988, Page 33

AMP confident in Aust.

NZPA-AAP Melbourne Australia’s largest investor, the AMP Society, has adopted a positive outlook on the prospects for Australian and other world sharemarkets. In its June quarterly report the society said that its return from Australian shares was 11.2 per cent for the period while property investments returned 6.2 per cent. Mr Alan Bertram, the manager of AMP’s sAust6.6 billion (SNZB.I4B) No. 2 fund, said economic fundamentals backed a positive view of the world economy and sharemarkets.

The current hesitancy in world markets reflected tighter monetary conditions and uncertainty in the lead up to the U.S. elections, but the 12-month outlook was positive, he said. Mr Bertram said that in the short term, equity markets were vulnerable if economic growth expectations dropped in the realisation that growth in the U.S. and Japan was lower than thought.

“The coinmodities-orien-tated Australian market is particularly vulnerable to any such shift in investor perceptions on any cutback in commodity prices,” he said.

The report said AMP’s Australian share portfolio benefited from a bias towards quality companies paying fully franked dividends, which were keenly sought after the May economic statement.

The portfolio was also helped by a full weighting in the particularly strong metals sector.

AMP’s international share portfolio was hurt by the strength of the Australian dollar, which rose 6.9 per cent against the U.S. dollar during the quarter. AMP said prospects remained encouraging.