Fidelity International Resigns As Manager Of Edinburgh Investment Trust

by Carla Johnson, Investors Offshore.com

24 September 2008

Fidelity International, the investment management firm, has resigned as the manager of the GBP1bn Edinburgh Investment Trust, the largest UK income growth investment trust.

The decision comes after the board of the Edinburgh Investment Trust revealed in June 2008 that Fidelity International was looking at a range of investment management options as part of a review of future strategy.

Fidelity indicated to the board at that time its intent to resign as manager unless it could reach agreement on a new investment management approach that was commercially satisfactory.

However, it has since emerged that Fidelity and the board were unable to reach such an agreement and so Fidelity has formally resigned.

Scott Dobbie, Chairman of the Edinburgh Investment Trust, commented: “We would like to thank Fidelity for its management of the assets for the past five years and for its support of the board during this period. Fidelity leaves the Company’s asset portfolio in good shape.”

Fidelity International has managed the assets of Edinburgh Investment Trust since mid-2002. Over the past three years, the trust’s shares have been the top performer in the UK Growth and Income sector, according to the Fidelity/Morningstar UK Retail Prices Index (RPI) April 1999 to March 3, 2008.

Founded over 115 years ago, The Edinburgh Investment Trust plc is the largest UK income growth investment trust, with assets of approximately GBP1 billion. It focuses mainly on large UK companies, from a variety of different sectors and its objective is to achieve capital growth at a higher rate than the FTSE All-Share and dividend growth above the rate of UK inflation.

Invesco Asset Management Limited has since taken over the management of the fund.

Graeme Proudfoot, Head of Specialist Funds at Invesco Perpetual, commented: "We are thrilled to have been appointed by the Board of The Edinburgh Investment Trust plc, one of the oldest and best known names in the investment trust sector."

Neil Woodford, Head of Investments at Invesco Perpetual, will take over the management of the assets of the company.

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