AMP Capital takes a knock from direct property investment

The fund manager said the majority of leading indicators were pointing to a V-shape recovery amid a remarkable easing in financial market conditions where short-term funding had fallen below the average cost. The pick-up in global sentiment underpinned the gains in AMP Capital's funds, which were led by offshore property and hedged global shares, which gained 36.9% and 21% respectively.

"We are at the early stages of an economic recovery and interest rates remain low - that's normally a good combination for share markets," said Jason Wong, head of investment strategy.

Though New Zealand stocks' price-to-earnings ratio was on the expensive side when compared to the rest of the world, Wong expects them to lag behind the global rally and AMP Capital is slightly overweight on the assets.

The fund manager's balanced fund climbed 6.6% in the three months through September, and has gained 7.6% this year, while its conservative fund gained 3.5% in the quarter and 4% this year. Its growth fund surged 9.5% in the three month period, and has gained 10.4% this year.