AMP (ASX:AMP) shuts down ETFs

Not enough people are interested, so AMP Capital and Betashares are liquidating the funds. Here's the lowdown on these three ETFs.

| More on:
shutdown relating to asx shares and etfs represented by road sign stating shutdown ahead

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

AMP Limited (ASX: AMP) is decommissioning its entire range of exchange-traded funds (ETFs).

The company announced to the ASX on Wednesday that the following ETFs would be shut down, with their last day of trading on 4 December.

  • AMP Capital Global Infr Sec Fund (Unhedged) (ASX: GLIN)
  • AMP Capital Dynamic Markets Fund (Hedge Fund) (ASX: DMKT)
  • AMP Capital Global Prop Sec Fund (Unhedged) (ASX: RENT)

AMP Capital partners with Betashares to operate the funds. 

It seems these ETFs just failed to attract enough investor interest in the four years of their existence.

"BetaShares and AMP Capital have decided to terminate AMP Capital's three Active ETF funds due to the lack of scale achieved," an AMP Capital spokesperson said.

"Rationalisation of our funds is a normal part of our business. AMP Capital regularly reviews its product set to ensure products remain competitive and they meet the ongoing needs of investors."

At the time of writing on Thursday, the AMP share price is down 0.9% to $1.65.

Has AMP given up on ETFs?

The AMP Capital spokesperson said the company realises ETFs are "a large and growing market segment".

"While we have made the decision to terminate the Active ETFs, we may launch new Active ETFs in the future should the conditions be right and there is strong investor interest."

But for now, customers who wished to buy into these ETFs could instead invest in their unlisted equivalents, according to the spokesperson:

  • AMP Capital Global Property Securities Fund 
  • AMP Capital Global Infrastructure Securities Fund 
  • AMP Capital Dynamic Markets Fund

What to do if you own shares of these ETFs

AMP offered two choices for shareholders of the three ETFs.

First choice is they could simply sell off their shares via the ASX on or before 4 December.

The alternative is to hold onto their shares and participate in the wind up process. This will result in a final distribution payment that includes a final dividend plus a split of the liquidated assets.

"It is important to note that investors who hold their units and participate in the fund's winding up will be subject to market movements until the fund's assets have been realised."

Betashares and AMP expect that wind-up shareholders will receive their final distribution amount by the end of the year.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A businessman stacks building blocks.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares hit a new record high today.

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why Auckland Airport, Australian Ethical, Breville, and Clarity shares are charging higher

These shares are having a better day than most on Thursday. But why?

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Fallers

Why 29Metals, CAR Group, DroneShield, and Santana Minerals shares are falling today

These shares are missing out on the good times on Thursday. But why?

Read more »

Cheerful businessman with a mining hat on the table sitting back with his arms behind his head while looking at his laptop's screen.
Broker Notes

Macquarie tips 50% upside for this ASX 200 miner, and it's not BHP!

Unheralded miner poised to surge?

Read more »

A woman sits at a table with notebook on lap and pen in hand as she gazes off to the side with the pen resting on the side of her face as though she is thinking and contemplating while a glass of orange juice and a pair of red sunglasses rests on the table beside her.
Share Market News

Will these ASX 100 shares surge or sink in July?

These are two ASX favourites to watch closely this month. 

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Share Market News

3 ASX ETFs for smart investors

Let's see what makes these funds top picks for Aussie investors.

Read more »

A woman sits on sofa pondering a question.
Broker Notes

Guess which ASX All Ords media stock Macquarie expects to rise 17% over the next 12 months?

The broker is expecting big things from this media company.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Share Market News

5 things to watch on the ASX 200 on Thursday

It looks set to be a good session for Aussie investors on Thursday.

Read more »