Activist sets sights on AMP Capital’s AGF

Miles Staude

Global Value Fund

For eight years unitholders in AMP Capital China Growth Fund (ASX:AGF) have suffered from a substantial discount on their unit price relative to the underlying value of their fund. This discount has persisted through both buoyant and weak financial market conditions. Indeed, the Board has presided over a fund with one of the worst discount records of any in its peer group. In this open letter to the Responsible Entity we seek to hold the mirror up to the Board and highlight our concerns with the corporate governance at the fund to date. Since this fund was floated on the ASX its benchmark has increased by a total of 271% through to the end of April 2015. Over this same period unitholders have seen the price of their units rise by just 50%, whilst receiving dividends equal to 39% of the start of period value. For this underperformance AMP Capital has been paid over $42 million in investment management and Responsible Entity fees. The full letter is attached (VIEW LINK)

Miles Staude
Portfolio Manager
Global Value Fund

Miles has over 19 years’ of experience in trading, investment management and research, covering a wide range of financial markets. He is the Portfolio Manager of the Global Value Fund (ASX: GVF) and serves as a Director on the Global Value Fund Board

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