Trilogy Funds Management is now the responsible entity for the City Pacific Mortgage Fund following a vote by investors in the fund yesterday.
Following the vote, Trilogy secured over 55 per cent of the total units on issue which represented over 87 per cent of the units voted at the meeting.
With Trilogy as the new responsible entity, Balmain Trilogy will become the new manager of the fund.
Balmain Trilogy would apply its extensive resources, expertise and experience to the benefit of the members to rebuild a viable future for the fund, Balmain Trilogy chief executive Andrew Griffin said.
The deal follows previous approaches by disgruntled investors to Balmain and Trilogy seeking the appointment of an independent fund manager to replace the heavily compromised City Pacific.
The fact that City Pacific is a property developer and also a responsible entity of the mortgage fund was already a structural conflict of interest, Trilogy executive chair Roger Bacon said in April.
Under Balmain Trilogy's plan, the City Pacific Mortgage Fund's management fees would be reduced to a maximum of 1.5 per cent, 50 per cent lower than the previous charge, Bacon said.
