Below is copied and pasted from The Australian if anyone missed...

Below is copied and pasted from The Australian if anyone missed it..

Now it’s AMPexit

We’ve had Brexit, now there is “AMPexit”, the big battle to wind up the $500m AMP Capital China Growth Fund.

In the next couple of days, AMP will release its explanatory memorandum for the July 28 meeting that will consider two motions: the AMP sweetener package in which it offers a range of shareholder-friendly initiatives to boost support for its continued mandate and a wind-up motion from British hedge fund LIM Advisors.

Like Brexit, many of the people on the exit side of the fence including LIM say they don’t really want the fund broken up, just a better deal from AMP.

On Monday, AMP sought a court action to ensure 36 per cent holder AMP Life can’t vote at the meeting.

At face value, you would think AMP would want AMP Life on its side in the meeting but then again, if AMP Life had an independent streak and decided to vote for the redemption, then it would have been game over.

Far better than to have AMP Life on the outside looking in and leave it to the rest of the shareholders to decide the fate of the fund.

The China fund is close to 10 years old and, like all the other China A share funds run by HSBC and Morgan Stanley, trades at a discount to its net asset value and this discount has averaged 20 per cent.

LIM wants to wind up the fund or get a better deal to close the gap.

AMP has offered a range of inducements, such as cutting its fee from 1.65 per cent to 1.35 per cent, as well as redemption of some units and a buyback of up to 5 per cent of the fund.

The naysayers want a bigger buyback of up to 50 per cent or, more to the point, to give all unitholders the right to sell if they want.

The exit camp is sitting close to getting enough votes to force full redemption: LIM’s 10 per cent, Gramercy’s 11.5 per cent and Wilson Asset Management’s 3.5 per cent brings the total to 25 per cent.

Thirty-two per cent would be enough to overturn AMP and force its hand and that is the game LIM is playing now as it tries to get enough votes.

Like Brexit, AMP is saying be careful what you wish for because it may take up to two years to get your money out of China and that would be disastrous for small shareholders.

The fund itself was one of the first launched by AMP when it was the first Australian fund to win coveted status as a qualified foreign investor, or QFI.

The expected release of the explanatory memorandum either today or tomorrow will be the next round of the battle and right now AMP exit is too close to call.