Email from McComas

Chucking this out there for comment. Personally, I feel the brand is destroyed. Interesting with all the buybacks and also participation of WAR, the SP continues to decline as does the NTA. We all feel we can do better elsewhere but can't sell due to high discounts and low liquidity. I'm pushing for 50% redemption at NTA or options for those that don't take up the redemption offer. This way we get rid of those that don't want to stay and reward the stayers. My last email to VGI has not been replied to so I can only assume the worst. Here is the email I had back from McComas yesterday.

Dear fellow VG1 shareholders,

We last updated you all on 29 June 2021, following the publication of the Booklet (9 April) and the Memo/Addendum (25 April).

Since then, VG1 performance has continued to disappoint:

• Share price: down ~15% - from $2.41 to $2.04 (ex div);
• NTA: down ~12% - from $2.73 to $2.39 (post tax, ex div, 1 Oct 2021);
• NTA discount: up from ~12% to 14.6% (8 Oct 2021)

In addition, VG8 in which many of you also hold shares, has also disappointed:

• Share price: $2.06 (ex div, IPO $2.50, Nov 2019)
• NTA: $2.46 (post tax, ex div, 1 Oct 2021)
• NTA discount: ~17% (8 Oct 2021)

Last week (Wed 29 Sep) we ran the following advertisement in the AFR (page 11).

Chanticleer (Tony Boyd) wrote an article recently (9 Sept) looking at “Fundies’ fee bonanza...” relative to performance achieved:

Here is an extract from the article:

"Luciano’s company manages the VGI Partners Global Investments and VGI Partners Asian Investments. The latter has been the subject of an activist campaign by former banker David Kingston and corporate adviser Malcolm McComas.

"The activists sent a stinging letter to Lawrence Myers, the chairman of VGI Partners Asian Investments, a couple of weeks ago claiming the performance fee paid to VGI Partners was inequitable.

"This accusation rests on the fact that the performance fee was calculated on changes in net tangible assets, which went up at the same time as the share price went down.

The long-term performance of VGI Partners Asian Investments is weak. Over the past two years, the annual return is minus 7.4 per cent. VGI Partners Global Investments has an annual return of 3.7 per cent over the past four years.

"Luciano is reviewing the structure and operation of the two listed investment companies in a bid to find strategies for slashing the discount to NTA. It would seem obvious for this review to include changes to the performance fee calculations."

We need your support now, to email Rob Luciano and the other directors directly.

It's time for you to tell them directly, that it is unacceptable to continue to do nothing to address the discount, the weak performance, high fees and governance issues.

Here are the relevant email addresses:

• Rob Luciano - [email protected]
• David Jones - [email protected]
• Lawrence Myers - [email protected]

David Jones is Chair of VG1 and an Executive Director at VGI

Lawrence Myers is Chair of VG8 and Independent Director at VG1

We suggest you copy Ian Cameron (Company Secretary) on all your emails: [email protected]

Please continue to copy us too at: [email protected]

Regards


David Kingston
Director, K Capital Pty Ltd

Malcolm McComas
Director, McComas Capital Pty Ltd


Email:[email protected]
MailO Box 833, Double Bay NSW 1360