Platform Partners Asset Management Co. (PPAM) announced on July 2 that it has sent a letter to Macquarie Korea Infrastructure Fund (MKIF) board of directors requesting talks with its fund manager, Macquarie Korea Asset Management (MKAM), and a list of infrastructure funds that have a similar pay structure to that of MKIF.
PPAM previously said that MKAM is undermining shareholder value due to excessive compensation and on June 26 sent MKIF a request for shareholders' meeting to discuss the dismissal of MKAM.
In response, MKIF board of directors said on June 28 that it is making an effort to increase shareholder value and to find investment opportunities, citing its investment of 26.3 billion won into the Seoul-Chuncheon Highway as an example.
However, PPAM insisted, "The Seoul-Chuncheon Highway investment is a case that shows MKIF's high level of remuneration to MKAM compared with other funds."
According to PPAM, K Asset Management, a domestic infrastructure manager participating in the Seoul-Chuncheon Highway investment project, is to receive a management fee of less than 0.15% from an investor in the same asset.
However, PPAM claims that the remuneration of MKAM is 3.1%, which is about 20 times that of K Asset Management.
PPAM has asked the MKIF board of directors to provide a list of infrastructure funds with a similar pay structure by July 4, and to have a meeting with the fund manager on July 9.