IIR LMI Monthly Report: FPP's largest shareholder fed up & RF1 adds an eighth strategy

The IIR LMI Monthly Report provides key LMI market news for the month of October as well as IIR research updates and key data points as at 30 September 2022.

Key news items include:

• PMC and PAI Announce Capital Management Initiatives: PMC and PAI have both announced their intention to issue bonus options on a 1-for-4 basis in early 2023 with an exercise price that is designed to take advantage of the depressed level of equity markets. The objective of the options will be to provide shareholders the opportunity to potentially benefit from any subsequent recovery in global equity markets during the option period and potentially improve the liquidity of both companies.
• Argo Global Infrastructure Limited (ASX: ALI) Raises $21m through SPP: ALI raised $21m through the Share Purchase Plan (SPP) which closed on 14 October 2022. The Company received applications from 1,801 shareholder with 8.9m new shares issued at a price of $2.35 per share. The capital raised will be invested in line with the ALI investment mandate.
• Portfolio Manager Changes at Magellan High Conviction Trust (ASX: MHHT): On 17 October 2022, MHHT advised that effective from the date of the announcement Nikki Thomas an Alan Pullen have been appointed as co-portfolio managers of the Trust, replacing Chris Wheldon and Michael Poulson.
• Fat Prophets Global Property Fund (ASX: FPP) Seek to Replace the Investment Manager: On 16 September 2022, the Responsible Entity of FPP announced the request for a unitholder meeting to consider a special resolution to terminate the current investment management agreement with Fat Prophets Funds Management Pty Ltd and appoint Lanyon Asset Management Pty Ltd (Lanyon) as the investment manager of the fund and change the name of the fund to the Lanyon Global Fund. The Explanatory Memorandum was released on 7 October 2022 and an Extraordinary General Meeting has been scheduled for 10 November 2022.
• Regal Investment Fund (ASX: RF1) Adds Resources Royalties Fund to Investment Mandate after Liquidity Proposal Approved: On 13 October 2022, RF1 announced that the unitholders of the Gresham Resources Royalties Fund (GRRF) voted in favour of the Liquidity Proposal at a recent unitholder meeting. As detailed in the previous monthly report, the Liquidity Proposal sought to change the name of the fund from the GRRF to the Regal Resources Royalties Fund, appoint Regal as trustee and investment manager, modify the GRRF constitution and replace the information memorandum, terminate the existing investment management agreement and approve the payment of a performance fee to GRRF, among other matters. Following the approval, the Resources Royalties Strategy has been added to the RF1 investment mandate, with an initial allocation of approximately 17% of RF1’s unaudited NAV as at 14 October 2022.
• QVE Equities Limited (ASX: QVE) Increases Dividend Outlook for FY22-23: On 19 October 2022, QVE announced an interim dividend of 1.3 cents per share for the September 2022 quarter, with an ex-dividend date of 15 November 2022 and payment date of 2 December 2022. The dividend represents an 8.3% increase on the June quarter dividend of 1.2 cents per share. The Company also announced that it seeks to pay dividends totalling 5.2 cents per share for the FY23 period (inclusive of the September quarter dividend), subject to the Company maintaining sufficient profit reserves and there be no material impacts, changes or unforeseen events. The forecast dividend represents an 8.3% increase on the dividends paid for the FY22 period.