UK – The £1.4bn (€2.2bn) Edinburgh Investment Trust (EIT) has put the contract to manage its assets out to tender. The action is the result of uncertainty in the relationship between the trust and its current managers, Edinburgh Fund Managers (EFM), caused by the merger discussions between EFM and Hermes Pensions Management and performance issues last year.
Though the merger discussions have since broken down and EFM’s performance levels have improved, the board of EIT says it is “unable to give a commitment to a continuing relationship with EFM without judging them formally against other fund managers”.
However, a spokesman for EFM says they fully intend to participate in the selection process which is due for completion after EITs annual general meeting on July 3. EIT has said that the current contract with EFM will terminate on August 31.
“The whole issue of renegotiating the manager contract was brought up by the merger discussions between ourselves and Hermes. Since the merger will not now go ahead, we are confident of re-appointment,” EFM’s spokesman says.
EIT has asked consultants and actuaries firm, Hymans Robertson, to take care of the selection process.