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AMP Capital China Growth Fund


Fund wind up information

How the fund works

The AMP Capital China Growth Fund aims to achieve long-term capital growth for investors by investing in China A shares, which are shares in companies listed on China’s Shanghai or Shenzhen stock exchanges; and outperform the S&P/CITIC 300 Total Return Index (expressed in Australian dollars).

The AMP Capital China Growth Fund was launched in 2006 when AMP became the first Australian institutional investor to receive a Qualified Foreign Institutional Investor quota to invest in China. AMP Capital used this quota allocation to offer Australian retail and institutional investors unprecedented access to the growing China A-share market by listing the fund on the ASX. The fund remains the only actively-managed fund listed on the ASX which offers Australian investors direct exposure to China A-shares and allows them to benefit from China’s growth story.

The AMP Capital China Growth Fund is listed on the Australian Securities Exchange (ASX) so investments in the fund can only be made through a stock broker.

History of the Fund

In 2006, AMP Capital launched the China Growth Fund (AGF) when AMP became the first Australian institutional investor to receive a Qualified Foreign Institutional Investor quota to invest in China.

In 2008, AMP was granted an additional quota to invest in China. These quotas have allowed AMP Capital to offer Australian retail and institutional investors unprecedented access to the growing China A share market. AGF remains the only actively-managed ASX-listed fund offering Australian investors direct exposure to China A shares and allowing them to benefit from China’s growth story.

AGF’s investment objective is to achieve long-term capital growth with a focus on investing in China A shares and to outperform the S&P/CITIC 300 Total Return Index (expressed in Australian dollars).

In 2011, the Responsible Entity of AGF, AMP Capital Funds Management Limited, changed the composition of its board following a review of board appointments across the AMP group. It was determined that, given the complex nature of AGF and the in-depth knowledge and skills required to manage the fund, it was in the best interest of investors for AGF to follow the format of the other funds and investment structures established and managed by AMP Capital.

In 2012, AMP Capital moved its team of experienced investment professionals managing AGF from Sydney to Hong Kong to be closer to the companies the fund invests in, appointing Patrick Ho as fund manager.

In 2013, a Managed Investment Scheme Compliance Committee, with a majority of independent directors, was established to ensure all fund activities are undertaken in the best interest of investors and to ensure the fund complies with its Corporations Act requirements.

In 2015, the Responsible Entity of AGF conducted a strategic review of the fund, which concluded it is in the best interests of all investors to retain the fund with some strategic and operational enhancements. The enhancements include the implementation of Shanghai-Hong Kong Stock Connect trading platform, daily net asset value (NAV) estimates, establishing an ongoing Advisory Committee, altering the Dividend Reinvestment Plan, improving the marketing of the fund, and adopting a reference point to monitor the level of the discount to NAV at which the fund trades.

How does the fund meet investor needs?

Access to China A shares

Access to China A shares

The offer provides a rare opportunity for Australian investors to access the China A share market via an Australian fund listed on the ASX.

Investment in a high-growth economy

Investment in a high-growth economy

The fund provides investors with exposure to China’s growing economy.

Return potential

Return potential

The fund’s key investment objective is to achieve long-term capital growth for investors by investing in China, with a focus on the China A share market. It is managed by an experienced manager with a strong track record.

Net asset value

Current net asset value as at 31 October 2016

NAV per unit (ex distribution) $0.3617

Distribution History

Year Distribution (per unit)
2015 A$0.33575
2014 A$0.03883
2013 A$0.01922
2012 A$0.02345
2011 A$0.02057
2010 A$0.02593

About China A Shares

China A shares are Renminbi (RMB) denominated shares issued by companies registered in mainland China and listed on the Shanghai or Shenzhen stock exchanges. They are only available to domestic investors, Qualified Foreign Institutional Investors (QFII) licence holders and approved foreign investors under the strategic investment scheme. (This scheme permits foreign business entities to take a minimum approved 10% stake in A share companies, but holdings must be held for at least three years).

AMP Capital's QFII licence

The China Securities Regulatory Commission (CSRC) and China’s State Administration of Foreign Exchange (SAFE) introduced the Qualified Foreign Institutional Investor (QFII) Licence to allow foreign investors to invest in China A shares.

In July 2006, AMP Capital was announced as the first Australian company to be granted a QFII licence by the CSRC. SAFE granted AMP Capital a quota of US $200 million.

Under the licence, AMP Capital can gain access to China’s largest share market. Access to these shares has traditionally been restricted to domestic Chinese investors.

Fees

Type of fee or cost Amount How and when paid

Base fee

Base fee of 1.652% per annum (inclusive of GST, less any input tax credits)

The base fee is calculated on the Fund assets as at the last day of each month and is payable quarterly in arrears on the final day of each quarter.

The base fee is payable to us out of the Fund either as a cash payment or by way of an issue of Units in the Fund.

Estimated recoverable expenses

Estimated ongoing Fund expenses of 0.12% per annum (inclusive of GST, less any input tax credits).

From time to time due to extraordinary activities AMP Capital Investors Limited may recover additional expenses from the Fund.

Expenses associated with operating the Fund will be paid or reimbursed by the Fund when incurred.

Performance fee

20% of outperformance above the Benchmark

The performance fee (if any) is payable quarterly in arrears on the final day of each quarter.

The performance fee is payable to us out of the Fund either as a cash payment or by way of an issue of Units in the Fund.

What are the key risks associated with the fund?

Risks specific to the fund include or are associated with payment of distributions, tax, currency, service provider, related parties and asset allocation risks. Please refer to the fund’s Product Disclosure Statement for more information.

Contact Details

Investor enquiries

AMP Capital Client Services

1800 658 404

+61 2 8048 8230

clientservices@ampcapital.com

www.ampcapital.com.au/china


Media enquiries

Catherine Woods

+61 2 9257 5615

+61 477 320 333

Catherine.Woods@ampcapital.com

www.ampcapital.com.au/china

How to invest

As this Fund is listed on the Australian Securities Exchange (ASX), trading of units must be conducted through an ASX registered stockbroker. The ASX website can provide further details on ASX registered stockbrokers.

AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the AMP Capital China Growth Fund and the issuer of the units in the Fund. To invest in the Fund, investors will need to obtain the current Product Disclosure Statement (PDS) from AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232 497) (AMP Capital). The PDS contains important information about investing in the Fund and it is important that investors read the PDS before making a decision about whether to acquire, or continue to hold or dispose of units in the Fund. Neither AMP Capital, AMPCFM nor any other company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this information. Past performance is not a reliable indicator of future performance. While every care has been taken in the preparation of this information, AMP Capital makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. This content has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of this information, and seek professional advice, having regard to their objectives, financial situation and needs.

 

About the PDS:

You will find the following offer documents for this fund:

  • PDS
  • Incorporated information (the information incorporated by reference in the PDS, and which forms part of the PDS)

Before making a decision about investing or reinvesting, you should read both documents. These documents can also be obtained by contacting us on 1800 188 013.