Trilogy Capital asks City Pacific to explain management fee
Trilogy Capital expects City Pacific to promptly advise all unit holders in the City Pacific First Mortgage Fund of if and when it will cut an excessive management fee and by how much, according to Trilogy Capital Group executive chairman Rodger Bacon.
"For months, City Pacific has been talking about cutting the mortgage fund's excessive management fee, which now stands at more than 3 per cent," Bacon said.
However, he said City Pacific had not said when it will cut the fee and by how much.
Bacon reiterated Trilogy's stance on a management fee of 1.5 per cent, saying it was the industry norm.
Despite market rumours that Trilogy will earn other borrower fees and/or charge fees other than the 1.5 per cent management fee, "the mortgage fund under Trilogy will only pay a 1.5 per cent management fee", Bacon stated.
Meanwhile, Trilogy is responding to requests from unit holders to assume management of the mortgage fund, which has not paid distributions or made redemptions since early last year.
Trilogy will call for a meeting of all unit holders in the next month and seek their approval to replace City Pacific as the responsible entity of the mortgage fund.
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