AMP CAPITAL CHINA GROWTH FUND (AGF)

I just found out that the fund is actually listed on the ASX. So instead of buying units from AMP we actually buy the shares.
In theory it should mirror the net tangible asset but it hasn't.
The net value in May was $1.56.
AMP CAPITAL CHINA GROWTH FUND (AGF) - Boardroom Radio - Putting customers and investors in touch-

I am looking into selling my Alinta shares and buy something else in next financial year (2 weeks away).

Any comment on this shares? Thanks.

 

http://www.asx.com.au/investor/pdf/lic_nta_report.pdf

http://www.asx.com.au/investor/pdf/lmi_performance.pdf

65% LVR available from my lender so it's not a dud or a star. Undervalued according to the ASX but will the market pick it up and run with it given that it pays no dividends and slips past peoples radar.

 

Thanks for the links!
I didn't realise that the ASX has the analysis.

 

You guys might like to check out the thread 'Chindia'. I've cut'n'pasted this from that thread:

Alternatively, AMP Capital's China Growth Fund (AGF on the ASX) has the only Australian license to invest directly into Chinese listed shares. Check it out...

I haven't been following it closely. It's only been listed since the start of the year, and:
From AMP Capital Investors Home page - Investing. It's what we do

What are the Fund’s investment objectives?
The Fund’s investment objectives are:
* 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).
The objectives do not include the payment of regular income to investors.

The lack of income removes it from my regular watchlists, because I'm geared and can't legitimately invest into non-income assets.

If it pays no income (it says this directly!), you will have a serious problem if the tax man asks about claiming any interest on this investment.

By all means, consider it directly, but I'd avoid it with borrowed money, unless you're right on board the China bus...

 

I think as far as the ATO concerns, you can only gear it if it will be paying a dividend in a forseable future. That's why you are still allowed to gear on mining stocks that are not paying dividend yet (or in reality will never be).
AGF might not fall into this category, I don't know for sure. But if you can't gear it, at least you still claim the interest cost when you sell it. Like buying a block of land I quess.