Invesco’s Mark Barnett has been sacked from running the Edinburgh Investment Trust following three years of underperformance.
Majedie Asset Management has been chosen as the company’s new alternative investment fund manager (AIFM).
In a statement, the trust said Barnett’s portfolio had suffered from a number of stock specific issues, including large drops in stock prices.
According to the trust, the board has been examining more closely the approach used to select stocks, as well as the methods and approach to portfolio construction.
The trust’s chairman, Glen Suarez, said: “I am disappointed by another weak result for the company in today’s interim results, extending the period of underperformance to beyond three years.”
“Following a detailed assessment, thorough review and selection process, the board has decided to change the company’s investment manager and I am pleased to report that we have chosen Majedie.”
James de Uphaugh, Majedie’s chief investment officer, will become the next portfolio manager, replacing Barnett at the helm.
Suarez added that Uphaugh is a “highly experienced active manager with a flexible investment approach” and “has the right approach to meet our company’s objectives of capital appreciation and dividend growth over the long-term”.
Invesco has expressed disappointment at the decision.
“We understand the pressures that exist in today’s market from shareholders and have acknowledged the Board’s desire for change with the principled based approach we have taken,” a spokesperson said.
“We believe that there are compelling opportunities for investors who are able to look beyond the market’s short-term pessimism in selective areas of the UK market.”
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