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AIMS Fund Management advises unitholders to hold off action on winding up bid
AIMS Property Securities Fund's responsible entity (RE), AIMS Fund Management, 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 to vote on winding up the fund.
They disclosed this two days after Samuel Terry launched another attempt to wind up AIMS Property Securities Fund, less than two years after its previous bid. This time around, Samuel Terry is pairing up with another unitholder, fellow Sydney fund manager Sandon Capital Investments, to call for a winding-up vote in Sydney on Dec 10. The pair, as well as their related parties, together have a voting share of roughly 18.6 per cent.
AIMS Fund Management said on Wednesday it is seeking advice on the contents of the notice of meeting to determine its validity.
Company secretary 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 and Samuel Terry said on Monday they were unhappy that the fund is trading at a discount to net asset value (NAV), and with its investments in related parties. These include stakes in Singapore-listed Aims AMP Capital Industrial Reit and 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.
As of 10.34am, AIMS Property Securities Fund was trading at S$1.750, up five Singapore cents or 2.9 per cent.