Edinburgh Investment Trust fires manager over poor results
Not in the money: the trust’s performance is down
Invesco’s Mark Barnett has been removed as manager of the Edinburgh Investment Trust following a period of underperformance.
The trust has replaced him with Majedie Asset Management’s James de Uphaugh after net asset value (NAV) in the six months to 30 September fell by 3.1%, well behind the 4.6% return in the FTSE All share. The discount widened from 7.6% to 10.5% over the period.
Wealth Manager reports that the trust has underperformed its benchmark in each of the past three years, with its NAV up by just 1.6% over this period against the 21% gain in the FTSE All Share.
Chairman Glen Suarez expressed disappointment with the latest results after giving Mr Barnett almost two years to turn things around.
“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,” said Mr Suarez in a statement.
“Following a detailed assessment and careful consideration, including taking independent advice from Willis Towers Watson, a firm of investment consultants, and Investec Bank, our financial adviser, the board has decided to replace Invesco as investment manager and has today announced that it has entered into heads of terms for the appointment of Majedie Asset Management.”
Mr Suarez added that Majedie and Mr de Uphaugh had the right approach to meet the trust’s objectives of capital appreciation and dividend growth over the long-term.
Mr Barnett responded by apologising for his funds’ performance but arguing the liquidity of the funds was strong.