AMP Says Bonds No Longer a Hedge, Cuts From Some Pension Funds
Bloomberg 2026-07-03 03:07:18
Context: AMP Ltd., a leading Australian asset manager, has removed bonds from some of its pension funds, citing a shift in the role of sovereign debt in investment portfolios. This decision comes as bonds, traditionally used as a hedge against stock market volatility, are no longer providing the diversification benefits they once did. As a result, AMP has begun to adjust its investment strategies.
Key Facts
- AMP Ltd., one of Australia’s top asset managers, has ditched bonds from some of its retirement funds with sovereign debt no longer offering the diversification investors have relied on for decades as a ballast against stock volatility.
- The traditional role of bonds as a hedge against stock market volatility has diminished, prompting AMP to reassess its investment allocations.
- AMP's decision reflects a broader change in the investment landscape, where the conventional benefits of bonds in balancing risk are being reevaluated by asset managers.