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AMP CAPITAL CHINA GROWTH FUND (AGF)

Discussion in 'Managed Funds & Index Funds' started by tropic, 22nd Jun, 2007.

  1. tropic

    tropic Well-Known Member

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    WA
  2. bundy1964

    bundy1964 Well-Known Member

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  3. tropic

    tropic Well-Known Member

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

    Rod_WA Well-Known Member

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    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...
     
  5. tropic

    tropic Well-Known Member

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    WA
    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.