The Edinburgh Investment Trust board aims to inform shareholders who it has chosen to run its p...
The Edinburgh Investment Trust board aims to inform shareholders who it has chosen to run its portfolio this month. In May the £1.38m trust put the investment management contract, which is run by Edinburgh Fund Managers (EFM), out to tender.
Lord Eglington, chairman of the trust, said the board hopes to report the progress of the tender at the trust's AGM on 3 July and expects to make an announcement shortly afterwards. The board said that in the interests of the trust's shareholders, it has given protective notice to EFM, terminating the management contract with effect from the close of business on 31 August 2002.
Iain Watt, chief executive of EFM, said the group will tender for the contract and has a good case for retaining it. The fund manager stands to lose £4m in revenue if it loses the contract.
The £1.38bn trust, managed by Robert Waugh, represents 12% of EFM's total revenues, with the group's total assets, including the trust, totalling £7.1bn. As a result of the news, EFM's share price fell 6.61% over a two-day period from 21 May to 23 May.
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