The board of the Continental Assets investment trust has dumped Ivory & Sime from running the fund and called in Invesco Asset Management.
Proposals for the reconstruction of the £85m trust will be sent shortly to shareholders.
Invesco has worked with the trust board to provide a number of choices for shareholders following the sud den decision to oust Ivory & Sime.
Continental Assets will be liquidated and investors will be given the choice to transfer their investment into one of three investment funds.
Investors will be offered units in two existing unit trusts, the Invesco European smaller companies fund and the Invesco money fund.
There is also the option of investing in Continental Assets II, a geared investment trust which will focus on European smaller companies and will be run by Invesco.
Continental Assets II will have a new benchmark – the HSBC James Capel Smaller Companies index.
Continental Assets has returned about 43 per cent over three years compared with a sector average of 69 per cent.
Invesco will manage Continental Assets without charge until the new proposals are pushed through.
Invesco managing director of the closed-end fund division Sarah Bates says: "Our joint proposals offer shareholders value as well as flexibility of choice and the opportunity to participate in Invesco's outstanding performance in European smaller companies through a closed- end vehicle."