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Edinburgh Investment Trust comment in Investment Week

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Edinburgh Investment Trust comment in Investment Week – Investors ‘underwhelmed’ by Barnett replacement on Edinburgh investment trust

The decision made by the Edinburgh investment trust board to oust manager Mark Barnett following a period of prolonged underperformance came as “little surprise” and is a “welcome move”, according to several investment trust professionals.

However, the board’s decision to appoint Majedie Asset Management (MAM’s) CIO James de Uphaugh has been called “underwhelming” by some, while others have warned his value investment style bears a close resemblance to Barnett’s.

Yesterday morning (11 December), it was announced that Barnett would exit management of the £1.3bn Edinburgh investment trust, following more than three years of poor performance as a result of stock selection issues and an out-of-favour investment style, according to the board.

Glen Suarez, chair of the investment trust’s board, said it is “disappointed by another weak result for the company in today’s interim results”, and believes de Uphaugh is a “highly experienced active manager with a flexible investment approach”.

De Uphaugh, who co-founded MAM in 2002, co-manages a total of six open-ended portfolios, and is sole manager of the LF Majedie UK Smaller Companies fund.

He will manage the Edinburgh investment trust as high conviction 40-stock portfolio. It will take a total return approach with equal consideration of both capital and income.

The transfer to Majedie will take place in Q1 2020.

Reaction to the appointment has been mixed. James Carthew, head of investment company research at QuotedData, said that while the replacement of Barnett was not a surprise, “the choice of replacement is”. …read more here

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