(Alliance News) - FTSE 250-listed Perpetual Income & Growth Investment Trust PLC said Wednesday it is not planning to change its investment manager despite its "run of poor performance".
Perpetual Income & Growth said it is aware peer Edinburgh Investment Trust PLC fired investment manager Mark Barnett on Wednesday, but is not planning a change itself.
Barnett works for investment management firm Invesco Ltd, who also manages Perpetual Income & Growth.
"The board engages regularly with Mark Barnett, who continues to apply his consistent valuation-based investment approach and who continues to believe that the company's exposure to UK domestic stocks will benefit from clarity regarding the Brexit negotiations. This may be easier to assess following the outcome of the UK General Election," the trust said.
Earlier on Wednesday, Edinburgh IT said its interim performance was significantly behind its benchmark, so fired manager Barnett. Edinburgh IT replaced Invesco with Majedie Asset Management.
Edinburgh IT's NAV per share, with debt at market value, at September 30 stood at 660.16 pence, down 5.3% from 696.91p six months prior. In the six month period, Edinburgh IT's NAV total return was negative 3.1%, significantly behind its benchmark - the FTSE All-Share - which rose 4.6% in the same period.
Discussing the results, Edinburgh IT Chair Glen Suarez said: "This is another very disappointing set of results. Since 2018 your board has worked hard to understand the causes of this underperformance, cognisant of the long-term investment objective of your company and the recent trends in the UK equity market."
Perpetual Income & Growth said its own half-year results were "poor".
Perpetual Income & Growth's NAV total return over the six months to the end of September was negative 1.2%, while its benchmark, the FTSE All-Share Index, returned positive 4.6%. Share price total return, meanwhile, was negative 1.0%. Perpetual Income & Growth's NAV per share ended the period at 351.90p compared to 323.50p compared to the same point a year prior.
Perpetual Income & Growth added: "In the company's recent half-yearly financial report the board made it clear that it was concerned about the company's run of poor performance and is very sensitive to shareholder concerns about the continued weak results."
"While the company's long-term performance remains poor, performance, both in absolute and relative terms, has improved over the last three months. In light of this, and with the General Election taking place this week, the board does not consider it appropriate to undertake a review of its investment management arrangements at the current time," the company continued.
Perpetual Income & Growth noted it has had discussions with Invesco over its "continuing poor performance", and said it has talked about "processes around individual portfolio managers".
The trust said it will be "closely monitoring" the UK General Election, especially relating to how it impacts its portfolio.
Shares in Perpetual Income & Growth Investment Trust were down 0.6% in London on Wednesday at 316.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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