The board of GT Japan has terminated its contract with Invesco and replaced it as fund manager with ...
The board of GT Japan has terminated its contract with Invesco and replaced it as fund manager with boutique Sloane Robinson.
Sloane Robinson's appointment takes effect from 1 January 2001. Robert Boyd, director at GT Japan said: "The board wanted to move to a smaller, more flexible manager with more entrepreneurial talent. The performance of the trust under Invesco has not been fantastic, especially in recent years."
Sloane Robinson manages about £1.7bn in assets and its co-founder, Hugh Sloane, managed GT Japan until the end of 1993.
Boyd said: "We are moving back to what we started with, when GT Japan was launched in 1972. GT was then acquired by the Bank of Liechtenstein, then by Amvescap. GT Japan is a small trust, and following the recent share buy-back we decided our interests were better served by a smaller fund manager."
Nick Greenwood, head of investment trusts at Christows believes it is an indication of future trends. He said: "The appointment is not only of great importance for the individual investment trust but it indicates the attitude that boards are beginning to take. Fund management houses are growing to ever more massive sizes."
Amvescap, Invesco's parent company, has a market cap of £10bn.
"These combined houses will soon be larger than the markets themselves and their fund managers will be forced to become closet trackers," said Greenwood.
"Before long, little talent will be left within these houses as successful managers will leave to set up on their own."
Greenwood believes the boards of investment trusts are also increasingly independent of the fund management houses and, as a result, shareholder governance is improving.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till