A large investor in frozen hedge fund Aurora is demanding that the responsible entity for the fund be replaced after the fund manager's new owners slapped them with a 1.85 per cent redemption fee.

On Thursday, Providence Wealth wrote to the directors of Aurora Funds Management to request a meeting of unitholders to remove it as the responsible entity of the Aurora Fortitude Absolute Return Fund and appoint Millinium​ Capital Managers, which should then wind up the fund. Providence Wealth said the unitholders it represented, accounted for 5 per cent of the fund.