Trilogy claim insto support in bid for LM feeder funds
Trilogy Funds will power ahead with its bid for LM's Wholesale First Mortgage Income Fund claiming over 50 per cent support from among the unit holders.
But LM Investment Management has hit back - it said the institutional vote was influenced by two large wrap platform funds that together comprised 43.3 per cent of the vote. It said only five material investors voted in favour of switching the responsible entity to Trilogy.
LM founder and chief executive Peter Drake said the wrap funds represented only about 10 per cent of holders on the LM fund while 90 per cent of holders did not vote for Trilogy.
He said a likely uproar from advisers and investors on behalf of superannuation clients would ensue once they realized the fund had changed hands without their consent and to an entity with a poor track record.
Drake said it was unlikely Trilogy would be successful in its second bid to take over another fund, LM's Currency Protected Fund (CPF) as advisers and investors have a say.
Trilogy said it had received early support for the takeover bid. It said despite the low response rate of less than 20 per cent, which was due to mail delays particularly from New Zealand, the votes received reflected an 85 per cent approval rate for the Trilogy takeover.
Trilogy said LM was stalling by not publishing the funds accounts for the 2011/12 financial year. A move by LM to ban online proxies had exacerbated the delays, according to Trilogy.
Drake said he doubted the mail-delay story. He said the adjournment of the meeting regarding the second fund was due to not having enough votes or not having the right license.
He said Trilogy and LM lawyers decided to ban the on-line voting system due to fraud risk.
Of the 10.74 per cent of the CPF register, 96.1 per cent were against the appointment of Trilogy, Drake said.
Recommended for you
Two active fund managers have outshone rivals to report double-digit share price growth of more than 40 per cent for FY25, but another has lost more than 50 per cent.
From multiple fund launches and personnel changes to major outflows and a scrapped deal, Money Management has collated the most significant news in the funds management industry over the past 12 months.
Magellan has closed out the financial year with funds under management approaching $40 billion and outlined its estimated performance fees.
BlackRock has successfully completed its acquisition of global credit investment manager HPS Investment Partners, with the intention now to create a US$190 billion private financing solutions platform.
