The Edinburgh Investment Trust (EIT) has appointed London-based Fidelity Investments to manage its £1.1bn (E1.7bn) assets following an RFP it conducted earlier this year. Fidelity narrowly beat Scottish fund management group, Baillie Gifford.
Fidelity replaces Edinburgh Fund Managers (EFM) who were dropped after six years for poor performance and the proposed merger with Hermes Pensions Management.
The appointment is a blow for EFM who, at the time of the RFP, said they were confident of re-appointment as the merger talks with Hermes had broken down and their performance levels were up.
EIT appointed Fidelity following a “strongly contested” RFP organised in conjunction with consultants, Hymans Robertson. The move is the first time the trust’s assets have been managed outside Scotland and EIT says it chose Fidelity for a number of reasons.
Chairman of EIT, Lord Eglinton says: “the board was impressed with a combination of Fidelity’s qualities: sound investment credentials; solid corporate governance; the resources to manage the assets and steer the trust successfully.”
Eglinton adds that Fidelity’s long-tem investment approach coupled with its performance record complements the trust’s objectives to maintain its strategy of low cost, low risk exposure to the UK market.