THE consolidation of the listed fund sectors is pushing ahead, with WAM Capital and Premium Investors seeking shareholder backing for a friendly merger.
The merger will create a listed investment fund with combined assets of $300 million.
The WAM Capital chairman, Geoff Wilson, said the merger was consistent with the fund's strategy of seizing select opportunities to grow the company. WAM recently raised $38 million from investors to help fund acquisitions.
With a downturn in equity markets, the nation's listed investment funds have been under pressure to merge to help keep management costs down. At the same time the funds are increasingly becoming more attractive to self-managed superannuation funds. Although funds are demanding liquidity.
"The increased capital base will expand the range of opportunities available to us," Mr Wilson said.
The merger will push ahead by way of a scheme of arrangement, with a shareholder vote scheduled in late November.