AIMS Fund gets notice to hold unitholders' meeting

Singapore

AIMS Fund Management, the manager for dual-listed AIMS Property Securities Fund, has received a notice of meeting, explanatory memorandum and proxy form from boutique Australian firm Samuel Terry Asset Management calling a general meeting of unitholders.

The boutique Australian firm is launching another attempt to wind up AIMS Property Securities Fund, less than two years after a previous unsuccessful bid.

This time, Samuel Terry and fellow unitholder Sandon Capital Investments, which together control 18.6 per cent of the fund, have called for a shareholder vote in Sydney on Dec 10.

AIMS Fund Management, which is known as the responsible entity (RE) in Australian parlance, said it is seeking advice on the contents of the notice of meeting to determine its validity.

Company secretary for AIMS Fund Management Claud Chaaya said: "Accordingly, there can be no assurance that the resolution proposed to be considered at the meeting is valid. Subject to the validity of the resolution, the RE intends to provide unitholders with further information to assist unitholders to make an informed decision as to how to vote on the winding up resolution."

He also said AIMS Fund Management recommends unitholders take no action until after its detailed response is given and despatched to all unitholders.

"In particular, the RE strongly recommends that unitholders do not complete the proxy form which also accompanies the notice of meeting. Prior to any unitholder meeting, the RE also intends to provide unitholders with a separate proxy form."

Sandon Capital Investments and Samuel Terry said on Monday they were unhappy the fund is trading at a discount to net asset value (NAV) and its portfolio allocation to related-party investment, like stakes in the Singapore-listed AIMS AMP Capital Industrial Reit and the unlisted AIMS Real Estate Opportunity Fund.

"Unitholder funds have consistently been allocated to other investment products managed by the AIMS Financial Group, increasing the fees it receives," a letter from Samuel Terry to shareholders said.

"It is these fees - the quantum of which is unclear because (AIMS Property Securities Fund) refuses to disclose them - that are largely responsible for the fund continually trading well below its NAV," the letter added.

AIMS Capital Management said on Monday that "short-term opportunity investors, like Samuel Terry and Sandon Capital, have always tried hard to take advantage of our long-term unitholders' interests". It also said it does not charge AIMS Property Securities Fund any fund management fees or performance fees.

AIMS Property Securities Fund units closed up 2.9 per cent or five Singapore cents to end at S$1.75 on Wednesday.