BFS founder Tony Reid has quit his position on the board of the BFS income and growth fund.
The board says Reid, a key personality in the split-capital investment trust sector, left “with immediate effect” but it is not known under what circumstances the departure took place. It describes Reid as a “pioneer of the split-cap sector”.
Reid, an accountant, founded BFS in 1985 and built the company up to a point where at one stage it had a total of 1.5bn in funds under management and his annual salary was in the region of 3.5m.
Although the BFS income and growth fund was not drawn into the split-cap debacle, the fund has seen a massive fall in market value from 65m to 5m, with the share price dropping from over 1 to 7.75p.
Until late last year, however, BFS’ split-cap offerings was still beating the bear market, along with Aberforth, Henderson, Edinburgh, Invesco and Jupiter. The company presently has nine investment trusts across a range of international markets and sectors.