AMP Diversified Funds to invest in new China fund

The AMP Diversified Funds recently invested in the new AMP Capital China Strategic Growth Fund, providing investors with further access to China’s largest share market.

In April this year AMP Capital received a US$100 million quota from China’s State Administration of Foreign Exchange (SAFE) to invest in China A shares, which will be used to launch the AMP Capital China Strategic Growth Fund. This is in addition to its existing US$200 million quota which was used to create the ASX-listed AMP Capital China Growth Fund in January 2007.

The AMP Diversified Fund options on the Flexible Lifetime Superannuation and Flexible Lifetime Allocated Pension platforms will invest the full US$100 million in the AMP Capital Strategic Growth Fund.

The Fund will be managed by Head of Asian Equities, Karma Wilson. It will be actively managed and will seek to outperform the S&P/CITIC 300 Total Return Index on a rolling 3 year basis (expressed in USD). It is expected that 95-98% will be invested in China A shares and 2-5% will be invested in the Hong Kong H share market.

AMP Capital chief economist Shane Oliver said China was presenting some attractive investment opportunities.

“While the Chinese economy is slowing in response to slowing exports to the US, the long-term outlook remains very positive on the back of strong productivity growth, rapid urbanisation and growth in consumer spending.

“The price earnings multiple is back to around cyclical lows, so this is a good time invest in the Chinese share market,” he said.

The China Securities Regulatory Commission (CSRC) and SAFE introduced the Qualified Foreign Institutional Investor (QFII) Licence to allow foreign investors to invest in China A shares. AMP Capital received its QFII licence in April 2006 and was the first Australian company to be granted the licence and the first company globally to be granted an additional top-up.

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Find more information on the Diversified Funds.