The Investor Action Group (IAG) – an association of Melbourne financial planning firms including boutique AFSL Segue Financial Services and other groups who spoke to ifa on condition of anonymity – has hit back at a statement issued by Rural Funds Management (RFM) accusing the group of scuppering a proposed merger.
IAG spokesperson deLancey Worthington, a portfolio manager at Segue Financial Services, told ifa the group’s opposition to the proposal to merge and list the Chicken Income Fund, RiverBank Fund and Australian Wine Fund is simply motivated by acting in his clients’ best interests, some of whom hold units in the relevant funds.
“We are the only ones standing up to this and saying it is wrong,” Mr Worthington said. “In the words of the late [Australian Democrats founder] Don Chipp, Segue and the Investor Action Group is ‘keeping the bastards honest’.”
The IAG has concerns over the impact of the proposal on its clients, including the possibility of a transaction cost being borne by unit-holders and perceived breaches of regulatory guidelines.
“This is being painted as a merger but really it is a takeover,” Mr Worthington said. “The proposal contravenes ASIC guidance” and fails to uphold the ‘arm’s length’ and protection of existing unit-holder principles, he said.
Mr Worthington also defended the IAG against a number of charges implied by RFM in statements to the media.
“Segue Financial Services do not take commissions and have never taken one cent of trail or commission from RFM,” Mr Worthington said, adding that there is “no vested interest whatsoever” in the IAG’s opposition to the deal or support of a motion to have RFM removed as responsible entity for the funds.
Quite simply, the IAG believes unit holders would benefit from “keeping each fund functioning in the unlisted environment” and from the “responsible entity for each fund [being] replaced by someone other than RFM”.
Yep, definitely sums up the strength of your argument… Try the Oxford dictionary definition. One tends to find that there is more accuracy from reliable sources, other than the media.
Thank you Jurgen, I feel treasured and wear my ratbag label with pride. The following taken from the Sydney Morning Herald is an apt description.
“Ratbag is an excellent Australianism used too rarely these days. It affectionately describes people who speak out on issues of national concern and manage to amuse, infuriate and inspire the populace in equal measure.
At their best, ratbags entertain us and make us think. There are not enough of them, so they need to be nurtured and treasured.”
James – clearly you are not informed or involved, otherwise you’d not so readily give your parise to someone who simply sounds to be altruistic.
Would be interesting to see if other fund managers, like the previous Opus directors for instance, were as transparent in their dealings whether or not those funds would be in as much difficulty at the moment…
Problemsome is a better word to describe this group. Funny how ratbags will use the supposed moral higher ground to support their actions – just like the ISN doing the whole compare the pair ad campaign. And also how appropriate that they quote a fringe and radical political party such as the Democrats as their role model!
If the majority of investors and advisers are voting ‘for’ then this group of self appointed self interested ‘guardians’ should step aside like in any truly democratic society where the majority benefit and desire rules.
Go Mr Worthington….keep the bastards honest….wish there were more like you.