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(Sharecast News) - Edinburgh Investment Trust has sacked Invesco's Mark Barnett as its fund manager after a "disappointing" run of weak results.
The listed investment trust said James de Uphaugh, chief investment officer at Majedie Asset Management, would replace Barnett, who has managed the trust since 2013.
Chairman Glen Suarez told investors: "I am disappointed by another weak result for the company in the interim results, extending the period of underperformance to beyond three years.
"Since 2018, your board has worked hard to understand the causes of this underperformance, cognisant of the long-term investment objective of this company and recent trends in the UK equity market. Following a detailed assessment, thorough review and selection process, the board has decided to change the company's investment manager."
The interim results, also out on Wednesday, showed that the trust's net asset value fell 3.1% in the six months to the 30 September, while the share price declined 5.9%. The FTSE All-Share index, the trust's benchmark, rose 4.6% in the same period. The trust has assets of around £1.3bn.
"This represents an underperformance of 7.7% gassing the benchmark and follows underperformance against the benchmark in each of the three financial year," Suarez said. "Indeed, over the last three years the company has delivered NAV total return of +1.6% against the total return on the FTSE All-Share index of 21.7%."
Invesco said it was "disappointed" by the decision to remove Barnett, who is head of UK equities at the firm, and reiterated its support for his investment strategy.
De Uphaugh said: "Majedie's long-term flexible investment approach, incorporating a commitment to responsible capitalism backed by fundamental analysis, is well suited to an investment trust that seeks total returns from both income and capital growth."
Majedie will receive an annual management fee of 0.48% of the market capitalisation of the company up to £500m and 0.465% on amounts above £500m. That is a reduction on the current fees paid to Invesco, of 0.55% of market capitalisation.
Shares in Edinburgh were down 2p at 602p as at 1300 GMT.
29 May 2015 05:17