Edinburgh Fund Managers has been sacked as manager of the Edinburgh small companies trust following a lengthy spell of underperformance.
In yet another blow to EFM, the £62m trust has been taken over by Standard Life Investments. EFM was removed as manager of the £1bn Edinburgh investment trust last August.
The small companies trust – ranked last in its peer group over three years – will undergo a realignment led by SLI head of smaller companies equities Harry Nimmo.
SLI will get an annual management fee of 0.8 per cent of the value of the company's net assets, below the 1 per cent paid to EFM, which will not be compensated for the change. SLI says it will push the trust heavily through its distribution channels.
Head of UK business development George Walker says: “It is a strategically important move because we are interested in securing more investment trust mandates. It is also a good fit, with our track record managing small-cap money.”
Chartwell Investment Management director Patrick Connolly says: “SLI is one of four or five smaller companies team we support. It is a positive move.”