BalmainTRILOGY Replaces City Pacific

Unitholders in City Pacific First Mortgage Fund today overwhelmingly voted to appoint Trilogy Funds Management Limited ('Trilogy') as the new responsible entity of their Fund.

After the final vote at the meeting held at the Brisbane Convention and Exhibition Centre, Trilogy had secured 55% of the total units on issue which represented over 87% of the units voted at the meeting. Only 8% of the total units were voted in favour of retaining City Pacific.

Members holding in excess of 50% of the total units had to vote in favour in order for the resolution to be passed. Now that Trilogy is the new responsible entity, BalmainTRILOGY will become the new manager of the Fund.

The decision by unit-holders to call a meeting to sack the responsible entity of a mortgage fund is believed to be a first in Australian corporate history.

Balmain chief executive Andrew Griffin said: "Today's vote is a powerful illustration of corporate democracy in action. Over 87% of units voted at the meeting were in favour of appointing Trilogy.

"The vote demonstrates that Unit-holders of the Fund realised their best interests weren't being served by City Pacific.

"Today's vote vindicates the efforts of members, over an extended period, to have City Pacific removed as responsible entity."

In his address to unitholders at the meeting, Mr Griffin said that BalmainTRILOGY would apply its extensive resources, expertise and experience, to the benefit of the members, to rebuild a viable future for the fund.

Trilogy executive chairman Rodger Bacon said: "The vote clearly demonstrated that unit-holders wanted change.

"What I want to tell unit-holders now is that we will pursue their interests without fear or favor.

"Speaking to people after the meeting there can be no doubt they believe City Pacific has failed them."