AMP Capital Investors has decided to close its China Fund as a result of low demand from clients.
The China Fund was managed by the structured products team and included a capital guarantee component.
After expiry of the guarantee, many investors redeemed their money from the fund.
The fund, which had less than $30 million in funds under management, has been closed as of 16 June 2011 to both applications and redemptions.
"AMP Capital regularly reviews our product portfolio to ensure our offerings are contemporary and relevant to our investors," AMP Capital client, product and marketing director Brian Delaney said.
"There has been a poor level of investor interest in the fund and, after careful consideration, we believe this fund no longer meets the needs of investors," he said.
The fund invested in the FTSE/Xinhua 25 index, and it invested in bonds and options.
AMP Capital will pay a distribution to all investors in the China Fund, prior to the payment of wind up proceeds.
As of last Friday, AMP Capital has started to sell the assets in the fund and investors will be paid their pro-rata portion of the net proceeds.
The sale of assets may extend to months or longer, but the company expects the process will take about three months.
The measures do not affect the AMP Capital China Growth Fund, a listed fund that invests in China A-shares and which is managed by AMP Capital head of Asian equities Karma Wilson.
