The board of Hill Samuel UK Emerging Companies has served a protective notice of termination of its ...
The board of Hill Samuel UK Emerging Companies has served a protective notice of termination of its management contract with Hill Samuel Asset Management and Scottish Widows, but is looking to retain the services of its manager.
The announcement, made on 30 June, coincides with the transfer of the trust from Hill Samuel to Scottish Widows and the appointment of Brian Brennan as manager of the investment trust. The changes are part of LloydsTSB's acquisition of Scottish Widows last year.
Under the current management arrangements, the board has to give one year's notice of termination.
But the protective notice means the board can terminate in six months and only have to pay six months compensation in terms of the lost management fees Scottish Widows would have received. Brennan also runs the Scottish Widows UK Smaller Companies unit trust which is ranked 60 out of 69 over three years to 28 June on an offer to bid basis in the Standard & Poor's UK Smaller Companies peer group.
During that period the fund rose by 38.6% compared to an average rise in the sector of 77.2%.
Over the same three years when Liz Rees at Hill Samuel ran the UK Emerging Companies trust, its NAV rose by 89%. This compares favourable to the rise in the FTSE SmallCap index of 50% over the same period.
Performance of share price lagged that of the NAV, with the shares rising by 62%.
As at close of business on 3 July the trust was trading at a discount to NAV of 21.2%.
The average discount in the smaller companies sector is 17.7%.
£92bn transferred since 2015
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Since first announcement