Received proxy voting material for new advisory agreement due to change in ownership structure. Specifically, Mizuho (Japan) is buying a 16% stake - primarily from the founder and the current chairman - and placing a rep on the board. All advisory fees are supposed to remain the same.
Any thoughts?
http://www.mizuho-fg.co.jp/english/release/20150930_2release_eng.html(1)Mizuho Bank will acquire approximately 16% of the equity interests in Matthews Asia.
(2)Along with this investment, Mizuho Bank will designate a member to the Matthews Asia Board of Directors.
Comments
I can understand not every situation is bad. However, when we'll established funds sell part of their firm, to me it suggests high profile exits are in the near future.
That suggests that either this is a close vote (I agree with you, that's not likely), or it's such a foregone conclusion that they're not getting enough proxies for a quorum.
Still maintaining its 7:1 salary ratio (top to bottom) for full time employees.
Nice podcast from Knowedge@Wharton.
The funds exist independent of the choice of management company. Reject the new agreement (i.e. stop having Matthews Asia manage the funds), and the funds will have to do something else - try again for approval, find another management company, or fold (liquidate).
Unless you think they're going to find a management company that's better at investing in Asia, sticking with Matthews Asia seems like the best choice.
That doesn't mean I'm pulling the plug on Matthews, but I'll be "adjusting expectations" (one of M*'s favorite phrases).
@Lukemon Four phone calls--- seriously? Obviously, a man whose opinion is most highly valued!
Last weekend we were at our place up on the Russian River, north of SF. The phone there is still listed in my father's name (not the same as mine) as it has been since the 1950's. My wife, not being aware of the Matthews situation, answered what she thought was a cold-call from someone selling "an Asia fund", who asked for me by name. That number, while listed in the phone directory under my father's name, has NEVER been given out to any financial or commercial interest, and in fact is rather closely kept information.
If Matthews was the caller, they must have hired some database outfit to call every Northern California listing with my surname.
We have also received two mailings, and multiple emailings at our San Francisco residence. But no phone calls, possibly because the SF number is unlisted.
Sure does sound as if someone is pretty desperate.