Funds manager City Pacific Ltd
(ASX:CIY) has lost its court battle to remain in control of the $630 million City Pacific First Mortgage Fund.
On Monday the Federal Court handed down judgement in favour of rival financial group Balmain Trilogy, who won support from unit-holders to remove City Pacific as responsible entity for the fund.
According to The Sydney Morning Herald the fund was the main income earner for City Pacific, generating $30 million in management fees each year.
The paper reports that City Pacific had attempted to please unit-holders by lowering its fees, but at a meeting on June 25 unit-holders backed Balmain Trilogy who offered even lower fees.
City Pacific posted a $139 million loss in 2008.
