The board of the Edinburgh Investment Trust has cut the notice period it needs to give present manag...
The board of the Edinburgh Investment Trust has cut the notice period it needs to give present managers, Edinburgh Fund Managers, from one year to three months.
This follows a year that has seen a change in the portfolio's management team and a prolonged period of underperformance, according to Bloomberg. The trust's share price has fallen 22.09% during calendar year to 17 November against a fall in the FTSE All-Share of 15.46%.
Last month the £1.275bn trust changed manager following the resignation of Edinburgh Fund Manager's chief investment officer, Mike Balfour. He has been replaced on the portfolio by Robert Waugh and Peter Cockburn.
Should the change of terms lead to a change of manager contract this would be a severe blow to Edinburgh Fund Managers, which has already seen its share price plummet by 33.72% over the calendar year to 17 November.
Nick Greenwood, head of investment trusts at Christows, said the trust's board had merely acted to protect the best interests of its shareholders, in light of a potential takeover of Edinburgh Fund Managers. He added: 'The board is giving itself the leeway or flexibility to leave and only pay six months breakaway costs instead of a year's, if Edinburgh Fund Managers is bought by a fund manager the board is not comfortable with.'
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress