WAM takes action to remove Pengana International Equities fund directors
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The news: WAM Strategic Value is seeking to remove and replace most of the directors of listed investment company Pengana International Equities.
The context: In a notice to the ASX, WAM has sought to remove David Groves, Russel Pillemer and Sandi Orleow at the next general meeting. The only director not targeted is Francis Gooch.
WAM has put up Geoff Wilson, Richard Caldwell, Julian Martin and Jesse Hamilton as director candidates.
Wilson Asset Management has an 8.45% shareholding in the fund.
On 21 August, PIA received a query letter from the ASX regarding an article published in the Financial Review on its proposal to include a private credit strategy within PIA. The ASX said given the article was published before the strategy was announced, PIA might have breached listing rules. The LIC’s share price rose 3.69% that day.
On Wednesday, PIA’s response was published which said PIA chief executive, Pillemer, spoke to a journalist on the strategy but that it was “provided to the journalist on a confidential basis and not for publication or circulation”.
PIA also said that it intended to update its policies to acknowledge the listing rules and the requirement “to ensure that information is released to ASX (and receipt acknowledged) before release to any third party (rather than analysts and investors as references in the current Policy)".
"All directors, employee and contractors will be made aware of the updated Continuous Disclosure Policy.”
The LIC also posted its FY25 results on 21 August which included a net profit increase of 0.4% to $33.7 million and an income decrease of 6.9% to $49.69 million.
The portfolio underperformed the MSCI World Total Return Index due to select holdings in industrials and IT, along with an overweight position in health care and an underweight towards financials.
Over the year to 31 July 2025, the fund returned 13% compared to the index return of 17.4% and over the past five years has returned 9.3% compared to the index return of 16.3%.
