A resolution to wind up the AMP Capital China Growth Fund is likely to be passed at an extraordinary general meeting (EGM) in Sydney this morning, says AMP Capital.
In a statement released ahead of today's meeting, AMP Capital said that based on valid proxy votes received, unitholders would vote in favour of winding up the China Growth Fund (AGF).
Unless unitholders who have submitted proxies attend the EGM and change their vote, the LIM Advisors resolution to wind up AGF will receive approval from the required 50 per cent majority of eligible unitholders, the statement said.
Equally, the resolution of the fund's responsible entity (AMP Capital Funds Management) that enhancements be made to AGF will not receive approval from a majority of unitholders, it said.
"At the end of the day, our role is to reflect the wishes of unitholders and we thank them for taking the time to vote on the future of their fund," AMP Capital Funds Management chairman Adam Tindall said.
"Investors were given a choice and the majority has advised us they wish to wind up the fund. What has been made clear is that there were two views on the future of AGF.
"There were investors – largely institutional – who wanted the fund to be wound up. There were also a large number of retail investors who wanted the fund to continue. As responsible entity, we respect both views," he said.
"Following [the] EGM, where the wind-up outcome is likely to be confirmed, we will consider the best and fairest way to implement the decisions made at the meeting, working on behalf of all unitholders to get their funds back to them as quickly as possible."
The statement noted tax advice from KPMG that suggested the return of capital to unitholders from China is likely to take between nine and 18 months.
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