Edinburgh Investment Trust (EIT) is replacing Invesco with Majedie as its investment manager following three years of “underperformance”.
The trust, which holds assets valued at around £1.3 billion, has sealed a deal to reduce its annual management fee, with Majedie receiving 0.48% of the market capitalisation of the company up to £500 million and 0.465% on amounts above £500 million, compared to Invesco’s 0.55% of market capitalisation.
James de Uphaugh, Majedie’s chairman and chief investment officer, will be the EIT’s portfolio manager.
Majedie was founded in 2002 and manages assets worth around £10.8 billion. News of the change comes as the trust reveals a 3.1% drop in the net value of its assets in the six months to 30 September, compared with a 4.6% rise in its benchmark, the FTSE all-share index.
Glen Suarez, chairman of EIT, said: “I am disappointed by another weak result for the company in today’s interim results, extending the period of underperformance to beyond three years.Following a detailed assessment, thorough review and selection process, the board has decided to change the company’s investment manager and I am pleased to report that we have chosen Majedie.”
