Liontrust becomes Edinburgh IT's portfolio manager after Majedie buy

(Alliance News) - Edinburgh Investment Trust PLC on Friday said that its investment fund manager has changed to Liontrust Fund Partners LLP after its parent company bought Edinburgh IT's previous manager.

Liontrust Asset Management PLC bought its London-based neighbour, Majedie Asset Management Ltd, for GBP120 million in December.

In a separate announcement, Liontrust said that the acquisition has added GBP5.2 billion to assets under management & advice taking its AuMA to GBP38.6 billion, compared to GBP33.4 billion on March 25.

Edinburgh IT, which is based in Henley-on-Thames in England, said that the fund management team will stay the same, with only the name changing.

James de Uphaugh, Edinburgh IT's portfolio manager, said: "This is the beginning of an exciting new chapter for me and my investment colleagues in Liontrust's Global Fundamental team. The primary qualities that Majedie has embodied since our earliest days - a laser focus on performance, a commitment to responsible capitalism, the highest levels of client service, and alignment of interests with our clients through equity ownership and co-investment - will endure as we join Liontrust.

"The cultural fit of our two organisations is nicely matched and we are looking forward to the opportunity to focus on generating further attractive long-term returns for Edinburgh Investment Trust's shareholders."

Edinburgh IT added that its portfolio's current positioning remains well diversified.

"This remains an important feature of the investment approach, particularly given the prevailing uncertainties arising from the war in Ukraine, rising inflation and the energy crisis," the company said.

At March 30, Edinburgh IT's net gearing was 4.3% of net assets, which the company said supported prospects for long-term returns to shareholders.

Currently, there is a bias towards stocks in sectors such as food retail, defence and mining, the company said. Some of Edinburgh Investment Trust's biggest positions include food retailer Tesco PLC and weapons company BAE Systems PLC.

In the two years since de Uphaugh and the investment team were appointed, both the net asset value and share price have outperformed the FTSE All Share index by 4.5% per annum and 7.8% per annum, respectively.

Edinburgh IT's annual results will be released on May 26. Meanwhile, Liontrust said its trading update for the 12 months to March 31 will be released on April 12.

Edinburgh IT's shares were up 0.4% to 636.55 pence each in London on Friday morning; while Liontrust's stock was up 1.3% to 1,290.00p each.

By Greg Roxburgh; gregroxburgh@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.