City Pacific loses fund to Trilogy
City Pacific yesterday lost control of its First Mortgage Fund when the Federal Court in Brisbane appointed Trilogy Funds Management as responsible entity.
Trilogy put a resolution to the fund's members last month requesting a vote to remove City Pacific as responsible entity and to appoint Trilogy Funds Management.
The meeting of unitholders gave Trilogy 55 per cent of total units on issue, the validity of which City Pacific challenged.
The property and investment group argued that two resolutions were made rather than one, and should have been put forth as such. However, the Federal Court today ruled that two resolutions were not necessary.
As a result of the decision, BalmainTrilogy - a joint venture between Trilogy Capital Group and Balmain Corporation - will become the new manager of the fund.
Trilogy executive chairman Rodger Bacon said Trilogy would be taking care of the legal, practical and compliance side of the fund, as well as the client service side of the business.
Bacon said BalmainTrilogy would be implementing "those promises to unitholders during the campaign".
"This includes fees being capped at 1.5 per cent of funds under management and an asset review that has already been started by BalmainTrilogy."
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