April 27, 2024

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[THE INVESTOR] Platform Partners announced on Sept. 6 that Korean proxy advisory firm Sustinvest has backed its decision to remove Macquarie Korea Asset Management from managing the only listed infrastructure fund in the country.

Platform, which holds a 3.11 percent stake in the Macquarie Infrastructure Fund, had called for a shareholders meeting in June to decide the dismissal of the Korean unit of the Australian financial group, which has been operating the fund since 2006. 

Related:
Platform seeks to oust Macquarie Asset Management


Sustinvest has published a report saying that if the shareholders approve the decision to replace the fund operator, they would benefit greatly due to lower fees. It also added that costs and risks of switching the fund operator would be lower than the expected benefits. 

Platform has recommended state-run KORAMCO REITs Management and Trust in Macquarie’s place. KORAMCO has promised to charge fees that are about one-eighth of Macquarie’s, without any performance premiums.

Sustinvest said based on KORAMCO’s fee structure, shareholders would have enjoyed 118 won (US$0.11) more per share in dividends in the last five years. 

Platform Partners said it welcomes Sustinvest’s report and expects active participation. “We hope everyone exercises their rights so that this shareholders meeting becomes a good example of sound shareholder capitalism,” the company said.

The shareholders meeting is scheduled to be held on Sept. 19.

By Park Ga-young (gypark@heraldcorp.com)