Trilogy successful in stage one stoush with LM
Trilogy Funds Management will take over as responsible entity (RE) for one of LM Investment Management's feeder funds after gaining 56.8 per cent of votes at a unit holder meeting yesterday.
The LM Wholesale Management Income Fund is expected to change hands in one week, according to Trilogy.
The stoush between Trilogy and LM Funds Management regarding the feeder funds for LM's core fund, the First Mortgage Income Fund, has raged for the last month with both sides claiming the other was misleading investors.
LM claimed the vote regarding the wholesale fund was pre-ordained and unfairly influenced by a few big institutional voters which represented only 10 per cent of unit holders.
But Trilogy chairman Rodger Bacon said many of the investors were Investor Directed Portfolio Service (IDPS) platforms who were unable to cast a vote, and hence the small cohort of supporting investors.
He said the property manager's actions in attempting to take over as RE were in response to New Zealand investors in the currency-protected fund calling on Trilogy to throw its hat in the ring.
While Trilogy has claimed 85 per cent support among investors and said mail delays had caused a postponement of the meeting regarding the currency fund, LM said investors were purposefully abstaining from the vote in support of LM.
Bacon thanked investors and advisers for their support of the change of RE and said Trilogy would push ahead with its bid for LM's Currency Protected Australian Income Fund and ultimately LM's core fund, the First Mortgage Income Fund.
Bacon said another smaller feeder fund was on LM's books, which it would also bid for.
Recommended for you
Platinum Asset Management has provided an update on the possibility of a merger with asset manager L1 Capital following a period of due diligence.
Commentators may be forecasting consolidation in private market firms but a survey of the industry itself expects new manager formation will still outpace this, especially in Asia Pacific.
Fund manager Pacific Current has appointed a former superannuation chief executive as its newest chair, succeeding Tony Robinson who departs after almost a decade to focus on his role at COG Financial.
The possibility of a private credit ETF is looking unlikely for now with US vehicles seeing limited uptake, according to commentators, but fixed income alternatives exist that can provide investors with a similar return.
