RW HC CD3 6/6/23 Congratulationshobbes 29. I completely agree....

RW HC CD3 6/6/23 Congratulationshobbes 29. I completely agree. There are many reasons to vote NO to K2. Another very interestingdevelopment is the announcement “Samuel Terry Asset Management opposesappointment of K2 as RE of URF 2nd June 2023”.The points made by STAM re URF are equally apposite to the CD series. The REand Admin Fees proposed to be charged by K2 are0.275% of the gross assets of the CD1/2/3 funds, plus some cost recoveries. Based onthe approx $300m assets of CD1/2/3 at 31/3/23 that is $825,000 pa + cost recoveries.It should easily be possible to run CD1/2/3 as internalised stapled entitiesfor less than that. Even if it cost moreit would be worth paying to have complete independence from REs etc that have conflictsof interest. (I don’t comment on CD4 but I expect the same arguments and conclusionsapply there, too.)

That’s definitely the best strategy to pursue: it’s so obviousthat it is amazing it has not been raised before. I assume that E&P has notinvestigated this possibility, but it’s hard to tell as they say nothing aboutthe alternatives that they have considered. The only possible negative aspects might be stamp duty costs or adverse taxconsequences- but I doubt it and those would be very easy for a professional advisorto check immediately. STAM is absolutely right that URF (and CD1/2/3)need boards that are fully accountable, and only to unitholders.