A Brisbane-based funds management company, Trilogy Funds Management, has followed through on a threat made late last month to seek control of the City Pacific Mortgage Fund.
Trilogy’s executive chairman, Rodger Bacon, having flagged the company’s intentions in late February, announced today that his company would be seeking a meeting of all City Pacific First Mortgage Fund unit holders in the next month to support removing City Pacific as the responsible entity.
He claimed that the company’s decision to call the meeting was a direct response to requests from unit holders for Trilogy to assume management of the mortgage fund.
Bacon said the meeting would also seek a change in the fund’s constitution to reduce management fees, halving them from more than 3 per cent a year to a maximum of 1.5 per cent of assets under management.
He acknowledged that City Pacific was already contemplating a meeting of unit holders to discuss fees but claimed this would amount to treating the symptoms and not the disease.
Redemptions in the fund have been frozen since last year.
