LONDON (Alliance News) - Shareholders in Atlantis Japan Growth Fund Ltd should consider supporting LIM Advisors Ltd, the Hong Kong-based investment manager in its battle to restructure the London-listed investment trust, UK Individual Shareholders Society said Monday.
ShareSoc recommended that shareholders in the trust "give careful consideration to this matter and consider supporting the requisition unless the board makes alternative and substantial proposals to tackle the problems" identified by LIM.
Atlantis Japan Growth Fund Ltd said on Thursday last week that it plans to give shareholders a vote in 2019 to determine whether it should continue or close down.
In response, LIM, which controls a 14.9% stake in Atlantis Japan Growth Fund, said the planned continuation vote fails to address the discount at which the trust trades to book value; "extremely high" running costs; and an "unviable" size.
LIM would rather an opportunity for shareholders to exit their investment in the trust at close to its net asset value with a possible roll-over opportunity into an open-ended vehicle.
With a vote on LIM's restructuring proposal scheduled for May 3, Atlantis Japan Growth Fund currently boasts the backing of three shareholder advisory bodies: Pensions & Investment Research Consultants Ltd, Glass, Lewis & Co LLC, and Institutional Shareholder Services Inc. LIM's restructuring proposal requires the backing of at least 75% of votes cast at the meeting to pass.
Shares in Atlantis Japan Growth Fund closed down 1.4% at 139p on Monday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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