Edinburgh Fund Managers is rolling over its New Tiger investment trust into a split-capital investment trust with a new strategy after failing to make sufficient returns.
The firm will not reveal the future strategy as it claims it is stockmarket-sensitive.
The fund was launched in 1994 with a mandate to invest in Asian smaller companies with up to £500m market capitalisation. Changes were made to try to improve performance. The size of companies rose to £1bn cap and Hong Kong and Singapore were included.
The trust's board believes success in this market will remain difficult. Shareholders will be able to roll over their investment into the new trust.
The details of the new split-capital fund will be listed on January 22. Changes come into effect in February. Investors will choose ordinary shares or zerodividend preference shares.
Marketing and sales director Nigel Whittingham says: “We hope people will take the rollover option and new inv estors will be attracted. People may ask why we have not laun ched another Asian vehicle investing in lar ger companies but split-capital trusts are the only area currently trading at or above net asset value.”