Activists Target Nelson Peltz .’s Trian Over UK Fund

This campaign is a rare example of an activist investor playbook aimed at one of its highest practitioners. Nelson Peltz, co-founder of Trian Fund Management, often holds shares in companies, demands board seats and incites strategic changes that will result in large dividends for shareholders, including his whole company. In 2017, he launched a campaign against the consumer goods giant

Procter & Gamble Co.

that at the time it was The biggest and most expensive proxy war in history.

London investors listed

Trian Investors 1 Ltd.

it is hoping “to achieve an acceptable standard of governance and restore the trust and confidence of independent shareholders,” they said in a statement outlining their complaints.

The fund has a market capitalization of approximately $350 million, approximately $500 million less than the net asset value the company calculated as of May 31. The fund’s investments include stock in the company. consumer products.

Unilever PLC,

a recent goal of Mr. Peltz .’s company. Unilever said it would appoint Mr Peltz to its board last month.

In a securities filing on Monday, Trian Investors 1 said its board believes it acted responsibly and is reviewing investors’ request to hold a meeting and adjust back to the board of directors. The company said the board welcomes comments and views from all stakeholders. A subsidiary of Trian Fund Management acting as the investment manager for the listed fund.

Trian is getting a taste of his own drug from Invesco and Janus Henderson, two wealth management companies in which Trian holds shares.

When Trian Investors 1 first listed in London in September 2018, their plan was to invest in an underperforming listed company, open to changes, exit the investment and return the capital to shareholder. Last year, the company’s chief investment officer and board proposed changes to its investment policy. Trian can own multiple investments at the same time; buy majority shares; buy shares in private companies; and recover capital after divestment instead of distributing profits to shareholders.

Proposals passed 52% to 48% last June. Investors say the proposals were only approved because the funds are owned by Trian, along with the investment bank.

Jefferies Financial Group Inc.

, owned nearly 29% of the company at the time and voted in favor. Investors say Jefferies has a conflict of interest due to its relationship with Trian.

A representative for Jefferies could not be reached immediately for comment.

The investors want to remove three members of the board of directors and nominate an independent director and a director representing the corporation to replace them, in addition to convening an extraordinary general meeting.

Investors believe that Trian has a conflict of interest because of financial interests it may obtain as a result of a change in investment policy. Investors say the company’s board should consider how the policy change will affect investors who want to exit and now have to sell shares at a “substantial discount” to the stock market. with the underlying net asset value of the company.

Aegon Asset Management UK PLC also supports resolutions. Those seeking change represent about 44% of the fund’s voting shares.

Since its first trading day, the fund is up about 13%, although it’s down more than 20% so far this year. On Monday, the stock fell about 2%. The stock is very thinly traded and there have been long periods of time this year in which no shares have been traded.

Mr Peltz is not the first shareholder activist to face disparaging words from his own UK investors. Dan Loeb’s London-listed vehicle is also subject of attacks from shareholder activists wants to narrow the discount at which stocks trade to their underlying net worth. The Global Value Fund also joined the campaign.

The fund eventually agreed to appoint an independent director recommended by the shareholders and they ended their campaign.

Write to Julie Steinberg at [email protected]