Objective:

The AGPI Fund Series (the “Fund”) is an umbrella unit trust fund established in Singapore. The investment objective of its sub-funds is to provide medium to long-term capital appreciation via direct or indirect lending and/or through investment in listed equities, bonds, fixed income instruments, exchange-traded funds and other investments. Depending on which sub-funds you decide to invest in, certain sub-funds aim to generate an income distribution of around 14% over a rolling two-year period and the income generated by the relevant sub-fund will be distributed annually. Certain sub-funds aim to generate an income distribution of 15% over a rolling two-year period and the income generated by the relevant sub-fund will be distributed at the end of the two-year period. The principal amount invested by each Holder in the relevant sub-fund will be distributed to the Holders at the end of the two-year period.   

Strategy:

To achieve the sub-funds’ investment objectives, the Manager shall invest in a portfolio of property bonds in Germany. The issuers of the property bonds will acquire old heritage buildings in Germany for conservation purpose.   

Following the collapse of the Berlin Wall, it became evident that many historically significant buildings in old East Germany are in dilapidated condition and in need of restoration. Germany enacted urban planning laws which require these heritage buildings to be conserved. To support the private sector conservation initiative, the German government provides income tax offset to German buyers of these old heritage buildings amounting to 100% of the total refurbishment costs over a 12-year period*.

We are convinced that this approach will enable the sub-funds to achieve their targeted returns.

*Source: “Preserving Germany’s cultural heritage through legislation” by Royal Institute of Chartered Surveyors (RCIS), November 2007