UK- Tony Watson, chief executive of Hermes Investment Management, has resigned as non-executive director of the UK investment management house Edinburgh Fund Managers after a disagreement with the board over strategy.

A statement issued by Hermes, the independent fund manager for the BT Pension Fund, put the resignation down to “a result of disagreements with the rest of the board over the strategic policy and direction of the company.”

EFM declined to comment on the resignation only to say it very much regretted it.

Watson’s decision comes in the wake of a torrid period for the Edinburgh-based fund manager. Earlier this year its largest client, Edinburgh Investment trust, announced it was taking a £1.4bn mandate to Fidelity.

Profits for the first half of the year are down by 40% and funds under management have dropped a third to £4.7bn this year.

Last year Hermes, whose Clients own 29.3% of EFM, attempted to buy the group but withdrew the offer after it emerged that Edinburgh trust might pull its assets from EFM.