Institutional investors have warned AMP their loss of confidence could result in withdrawals from its $7 billion office tower fund, one of the key assets in the proposed float of its private markets business.
Investors in AMP Capital’s $7 billion office fund, a prize asset in the mooted demerger of AMP’s private markets business, have accused the wealth manager of conflicts of interest and demanded a review of process that reconsidered the vehicle’s management rights.and presided over by a three-man trustee board of AMP’s own executives, ultimately opted to retain control of the fund, rejecting rival proposals for the flagship vehicle to move into the stable of either Mirvac or GPT.
But a number of institutional investors in the office fund fired in a broadside to AMP last month, flagging serious concerns over how conflicts of interest were handled, along with the conduct and transparency of the process that led to AMP Capital retaining management rights.: Michael Bessell, AMP Capital’s co-head of infrastructure equity, joined by his fellow infrastructure co-head, Michael Cummings, and Simon Warner, global head of public markets.
“There is a concern that the trustee has prioritised the interest of its shareholders ahead of the interest of AWOF’s investors.” As part of that, the trustee directors would receive incentives for a successful launch of the private markets business, the investors noted.“We are concerned this leads to a very clear conflict with their ability to independently assess whether an AMP entity, or another manager, should retain the management mandate for AWOF and make a recommendation to investors.
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