The shareholders of New Star Investment Trust voted against separating it into two unit trusts at an...
The shareholders of New Star Investment Trust voted against separating it into two unit trusts at an extraordinary general meeting held today.
The trust was originally set up to allow Jupiter Asset Management employees to roll over their assets from the group's share option scheme without crystallising capital gains tax.
The management of the trust moved to New Star as part of John Duffield's settlement with Jupiter in November last year.
Following Duffield's departure from Jupiter employees who have assets in the trust have grown increasingly concerned about its investment strategy.
New Star Investment Trust has already made a 2.5% investment in New Star Asset Management, and Duffield has said this could be increased to 15%. Other intentions have included using gearing, which would raise the risk profile of the portfolio, which has historically been managed on a conservative basis by ex-Jupiter fund manager Alan Miller. Miller moved to New Star in January.
Minority investors at Jupiter had hoped for the creation of two unit trusts out of the existing investment trust, one to be run by Jupiter and the other by New Star.
However, the motion was defeated when only 40% of New Star shareholders voted for change. Duffield has approximately £20m of his own money in the trust.
A number of senior Jupiter employees, including its chief executive Edward Bonham Carter, have holdings in the trust.
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