The International Wine Investment Fund (IWIF) is set to remain in operation despite seeing the proposed limit of its redemption offer being broken. The wine fund, which had said that it would close down if over 40m units were redeemed, closed its redemption offer last week with 40.81m units being called in.

Around 1,785 unitholders, representing 67%, did not accept the A$2.68 per unit redemption offer, which was put in place to get dissident unitholders to sell their stakes.

In a statement to the Australian Stock Exchange, the fund said: "After taking legal advice, the Berren (Asset Management, the wine fund's manager) board resolved this morning to increase the size of the redemption offer from 40m units to 41m units and that all other terms and conditions of the redemption offer remain unchanged." The offer closed on Wednesday (29 June).

"The Berren board considers that the number of applications in excess of 40m units will not adversely impact the viability of the IWIF going forward," the fund said.

The IWIF has a total of 63.4m units on issue.

Dissenting unitholders forced the fund last month to set up the redemption offer after they had tried three times to oust Berren as its manager.