Edinburgh Fund Managers (EFM) has moved to reassure the boards of its 12 investment trusts of its ...
Edinburgh Fund Managers (EFM) has moved to reassure the boards of its 12 investment trusts of its long-term stability following the departure of chief executive Iain Watt last week.
Watt left following pressure from EFM shareholders including its largest, Hermes, said Rod MacRae, joint managing director of EFM. Hermes has 29.3% of EFM's share capital, according to figures from Bloomberg, followed by Artemis Investments with a 10.4% stake and Prudential with 5.1%.
Similarly, EFM will also seek to reassure investors in its 25 Oeics and unit trusts and in its fund of funds division.
Expectations are there will be a bid for EFM, possibly from Hermes, which saw an attempt fail earlier this year, or a reconstruction of the company, according to Martin Cross, an analyst with Teather & Greenwood. MacRae, however, pointed out Hermes has stated it will not renew its bid for the company.
He added. 'The boards were encouraged and supportive of what we are doing and our staff are very upbeat on the development.'
At two board meetings held on 27 November, the group's three non-executive directors, Sir Angus Grossart, Donald MacDonald and Johnnie Blair, resigned, along with its chairman John Wright.
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