AMP Capital rolls out China fund
AMP Capital Investorsramped up its retail market focus today with the launch of a new China fund aimed at providing investors with the opportunity to access one of the world’s long-term growth prospects.
According to AMP Capital Investors’ investment strategy head and chief economist, Shane Oliver, real long-term growth estimates in China remain at around 8 per cent, compared with 3.5 per cent in Australia, 3 per cent in the US and 2 per cent in Europe, despite the Chinese Government’s voicing to slow the economy.
“At these rates, China will be the biggest economy in the world within a generation. Any short term volatility associated with recent efforts to slow the Chinese economy to a more sustainable pace won’t alter that,” Oliver says.
The AMP Capital China Fund will look to invest in China’s top 25 companies as indicated through the FTSE/Xinhua China 25 Index.
The new fund is part of AMP Capital Investors’ increased focus on the retail market, with the fund having a minimum investment of $5,000.
The fund will be managed by AMP Capital Investors and comes with a capital guarantee through National Australia Bank, for investors who redeem their investment after five years.
Investors who withdraw five years from the investment date will receive at least their initial investment back, after entry fees, the group says.
Oliver says the Chinese economy has experienced significant growth in recent years to see it emerge as one of the largest economies in the world, second only to the US.
The offer will open on 24 May 2004 and close on 30 July 2004 with the capital guarantee effective on 4 August 2009.
AMP Capital manages a number of structured products across the Asian markets, with the structured product investment team responsible for $4.8 billion in funds under management.
These investments include the AMP Protected Growth Fund, Growth Overlay Fund, Geared Future Directions Share Fund and four AMP Henderson Asia Bonus Payout Funds.
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