A long-running feud between Pengana Capital’s Russel Pillemer and Wilson Asset Management’s Geoff Wilson has escalated, with Mr Wilson increasing his stake in an underperforming listed investment company (LIC) managed by his rival. The intensification comes amidst NSW Supreme Court proceedings initiated by Pengana Capital, which could determine the future of the Pengana International Equities (PIA) LIC. PIA is a listed investment company that invests in international equities, with its portfolio currently overseen by US money manager Harding Loevner.
Filings released to the ASX show Mr Wilson, through his superannuation fund Dynasty Peak, has boosted his holding in PIA from 8.54 per cent to 11.83 per cent. This move coincides with an extraordinary general meeting (EGM) where PIA investors endorsed a resolution for an optional buyback, allowing them to sell their entire stakes back to the LIC. Pengana Capital launched legal action on July 29 to overturn these EGM results. PIA, which has severely underperformed its index over most time frames, recently announced it would proceed with the buyback, a decision that could force it to start selling down its portfolio.
The dispute has been further fuelled by Pengana’s accusations that the PIA board failed to properly disclose conflicts of interest involving Mr Wilson, who sits on PIA’s board and also owns Wilson Asset Management, which manages WAM Global – a rival to Pengana in the LIC space. Pengana argues that shareholders were not fully informed of Mr Wilson’s sole ownership of WAM, which earns fees from WAM Global. Mr Wilson, who has been a director at PIA since October, refutes these claims, stating, “There is a fulsome disclosure of all my relationships.” The proposed buyback opens on August 12 and will run until September 21, giving Pengana a window to convince the court to reverse the action.
