WAM Capital terminates Treasury IM
WAM Capital has served notice to Treasury Group that it will be terminating the investment management arrangement which exists between Premium Investors and Treasury Group following WAM Capital's merger with Premium.
In an announcement released to the Australian Securities Exchange (ASX) today, WAM Capital noted that Premium Investors' assets were managed by Treasury Group, which invested in a number of unlisted unit trusts managed by fund managers associated with Treasury Group.
"Consistent with the transition arrangements agreed as part of the merger, notice has been given to Treasury Group that Premium Investors will terminate the investment management agreement," the announcement said.
It said that the WAM Board had also decided to redeem each of the underlying funds in Premium Investors, with the proceeds to be managed in line with WAM Capital's proven investment process.
Commenting on the merger, completed on 31 December, WAM Capital chairman Geoff Wilson said the merger had made WAM Capital "more relevant in the market and a substantial listed investment company".
The company said the merger with Premium Investors reflected its desire to take advantage of the increased demand from the financial planner and advisor community as a result of the Future of Financial Advice (FOFA) reforms.
It said the reforms banned conflicted remuneration, including commissions, and had had a significant positive impact on the awareness of the Licensed Investment Company (LIC) sector.
"As a result of the FOFA reforms, LICs are now on a level playing field with managed funds for the first time ever," Wilson said.
"This structural change in the financial planning industry heralds a golden decade for Australian LICs."
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