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."
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
