ii comment on Edinburgh Investment Trust moving to Majedie
2019 has shaped up to be a year for industry significant investment trust fund management group changes.
11th December 2019 11:08
by Moira O'Neill from interactive investor
2019 has shaped up to be something of a year for industry significant investment trust fund management group changes.
Today, the board of Edinburgh Investment Trust (LSE:EDIN) has announced that it has entered into heads of terms to appoint Majedie (LSE:MAJE) as the company's new Alternative Investment Fund Manager (AIFM), replacing Invesco.
This is the fourth investment management group change the investment trust sector has seen this year, compared to two in 2018, according to Association of Investment Companies (AIC) data.
Moira O'Neill, Head of Personal Finance, interactive investor, says:
“This change will come as little surprise to many. Also, the board of Edinburgh Investment Trust has never been shy of hiring and firing. In September 2008 the trust moved from Fidelity to Invesco, and the board has had form prior to this too.
“It’s a classic example that changing a fund management group is not necessarily the panacea to improve performance, but it is nevertheless a useful tool of last resort that boards of investment trusts have that open ended funds don’t. European Investment Trust is another case in point, which moved from F&C to Edinburgh Partners in 2010, and was off again in November 2019 – this time to Baillie Gifford, changing its name this month to Baillie Gifford European Growth Trust (LSE:BGEU).
“So the data is far from conclusive - the appointment of a new management group has reversed the fortunes of some trusts, with BlackRock Throgmorton Trust (LSE:THRG) a classic example – this trust moved from Framlington to Blackrock in July 2008. Only this week, the AIC said that BlackRock Throgmorton Trust was the best-performing AIC member company over 2019, and the ten-year performance has also been turbo charged, although that is far from a guide to the future.”
Investment trust fund management group changes in 2019 (source: AIC)
| Month | Company | New management group | AIC sector |
|---|---|---|---|
| Nov | European Investment Trust (LSE:BGEU) | Baillie Gifford | Europe |
| Nov | European Opportunities Trust (LSE:JEO) | Devon Equity Management | Europe |
| Dec | Woodford Patient Capital (LSE:WPCT) | Schroder Investment Management | UK All Companies |
| Dec | Edinburgh Investment Trust (LSE:EDIN) | Majedie | UK Equity Income |
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.