20 July 2009
MEDIA RELEASE
Court upholds BalmainTRILOGY
vote to become manager of
City Pacific First Mortgage Fund.
Justice Dowsett in the Federal Court in Brisbane today handed down a decision that gave BalmainTrilogy control of City Pacific First Mortgage Fund.
In handing down his decision, Justice Dowsett said "there was no need for two resolutions".
At the members meeting on June 25, a resolution was put to fund members that requested them to vote to remove City Pacific and to appoint Trilogy Funds Management as the Responsible Entity.
City Pacific legally challenged the concept of one resolution, arguing that BalmainTrilogy should have put two resolutions; one to remove City Pacific, and second to appoint Trilogy.
At the meeting of unitholders, BalmainTrilogy had secured 55 per cent of total units on issue which represented more than 87 per cent of the units voted at the meeting.
BalmainTRILOGY will become the new manager of the fund, Trilogy is the new Responsible Entity. It is believed this decision by unitholders to remove the Responsible Entity is a first in Australian retail funds management history.
Trilogy executive chairman Rodger Bacon said: "His Honour's decision will be welcomed by all those unitholders who voted to remove City Pacific."
"BalmainTRILOGY can now begin a new chapter in the history of this fund by 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."
"In addition, we will communicate openly with unitholders to let them know what is happening with their fund."
Mr Bacon concluded by thanking unitholders for the faith they have shown in Trilogy and Balmain, and assured them that this faith would not be misplaced going forward.