Geoff Wilson accuses L1 Group of 'stealing money' due to Platinum LIC fee hike
The prominent fund manager has launched a scathing attack on rival L1 after Wilson Asset Management lost a vote to control the board of one of Platinum's listed investment companies.
Prominent fund manager Geoff Wilson has accused L1 Capital of "stealing money from shareholders" after it proposed to change the management fees of one of Platinum Asset Management's listed investment companies.
On Wednesday, L1 Capital completed its merger with ASX-listed Platinum Asset Management with the new entity named L1 Group. L1 Capital shareholders hold 74% of the merged group while Platinum shareholders hold the remaining 25%.
In August, both L1 and Wilson Asset Management (WAM) put in proposals to manage the Platinum Capital LIC. Each party also nominated three directors to the PMC board and this was voted on at an extraordinary general meeting on Wednesday. L1’s director nominees were voted in.
If L1 takes control of the management of the LIC, it has proposed for the fund to use its Global Long Short Fund (GLSF) strategy with a management fee of 1.4% and a performance fee of 20% of any increase in NAV, after an initial 12-month period of no management fees. GLSF uses the same principles as L1’s flagship fund the Long Short Fund (LSF) but is geographically unconstrained.
