Fundraising

Macquarie Asia fund 'to wind down'

Macquarie International Infrastructure Fund has opted to shut down following a strategic review. The fund had been under investor pressure due to its performance.

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Beleaguered Macquarie International Infrastructure Fund (MIIF) has decided to wind down after a strategic review, according to a Bloomberg report.

The publicly listed fund, with $660 million in capital, had been under shareholder pressure because of its under-performance.

In November, LIM Advisors and Metage Capital, which together own 10 percent of MIIF, pressed to be nominated to its board, saying that the Singapore-listed fund was trading below its net asset value (NAV).

A shareholder letter from LIM and Metage asked MIIF to appoint LIM consultant Christopher Brader, Metage executive Miles Staude, and Metage confederate Nicholas Paris to its board, noting its market capitalisation has “fallen significantly” after 2005 when Macquarie Group launched MIIF.

Macquarie had recommended voting against LIM and Metage. LIM is a $1 billion multi-strategy hedge fund founded by noted Asia investor George Long. Metage is headquartered in London.

Macquarie undertook a strategic review of the fund in October, noting that a “wind-up” of MIIF might result. Independent adviser CIMB Bank handled the review.

The Macquarie fund is the owner of a port and toll road in China, as well as a wind farm in Taiwan.