Voting Results of the HHY Fund Unitholder Meeting

Aurora Funds Management Limited (Aurora) is pleased to announce the outcome of the meeting held on 6th December 2016, which was subsequently adjourned to 9 December 2016, whereby investors opposed all of the resolutions proposed by Wilson Asset Management (Wilson). Accordingly, Aurora will continue to act as the Responsible Entity (RE) of the HHY Fund (HHY).

The meeting had been adjourned due to a challenge by Wilson against the legal validity of online voting. After considering the matter, the independent Chairman determined to accept the online votes. Details of the resolutions and the proxies received in respect of each resolution considered at the Meeting are set out in the attached proxy summary.

It remains unclear as to what Wilson’s intentions were for the HHY Fund. Wilson originally requisitioned a meeting held on 29 September 2016 to change the RE and wind up the fund with a complaint about the discount HHY traded relative to the fund’s NTA. Aurora recognised this concern and facilitated a takeover bid by another Aurora Fund, the Aurora Global Income Trust (AIB), to enhance liquidity for all HHY investors at prevailing NTA. Accordingly, the independent Chairman of the HHY Meeting held on 29 September 2016, elected to adjourn the meeting to enable members to consider the bid on an informed basis. The Bidder’s Statement was despatched on 28 November 2016 and the Target Statement is due to be despatched on 13 December 2016.

In response to this bid, Wilson Asset Management (International) Pty Ltd (WAMI) acquired substantial holdings in two (2) other Aurora funds, being Aurora Property Buy-Write Income Trust (AUP) and Aurora Global Income Trust (AIB), and then within 3 weeks sought to remove Aurora as RE of those funds in addition to the Meeting to remove Aurora from HHY, this time without a request to wind up the fund. Wilson’s resolutions, if passed, would have had the effect of breaching a condition of the takeover offer, allowing the Bidder to withdraw.

Wilson stated his dissatisfaction with the takeover bid for HHY as the basis to take action against these other funds.

All 3 meetings called by Wilson and WAMI failed.

Aurora cannot reconcile the actions of Wilson, given that Wilson and WAMI presently have an ability to exit all of their positions in all three of the funds at NTA backing.

With the distraction of these meetings now behind us, Aurora’s capable and experienced team looks forward to the task of continuing to implement its investment strategies with a view to generating returns for its investors.

Aurora would like to thank our loyal unitholders for their continued support.

If you have any queries or concerns, please contact us on 1300 553 431.

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