A major fund manager that is invested in Rio Tinto says an activist push for the iron ore mining giant to ditch its main London listing will only enrich bankers and advisors and do nothing for Australian shareholders.

WaveStone Capital, which has almost $10 billion in assets under management and owns Rio’s Australian-listed shares, is opposed to a proposal from British hedge fund Palliser Capital that calls for the company to drop its primary London listing, describing it as “the nuttiest thing”.