Management of the £40 million British Portfolio Trust has been handed to BlackRock following a period of poor performance under RCM.
The board has announced the appointment of a new manager after the company ‘exhibited overall underperformance against its benchmark when measured since inception’.
BlackRock’s Nick McLeod-Clarke has been named lead manager of the trust and will be joined by Adam Avigdori.
They replace RCM’s Jeremy Thomas, who has managed the trust since March 2008.
The new manager will take over with effect from 1 April this year.
In a statement, RCM, which is part of Allianz Global Investors, said, ‘This is a board decision and whilst it is clearly disappointing, we accept their decision.
‘As a business we remain firmly committed to the investment trust sector.’
McLeod-Clarke, who already co-manages the BlackRock UK Income fund with Avigdori, said, ‘For the first time we will be able to offer our successful income strategy to investors in a closed-end format. ‘In today's new world of investment challenges and low interest rates, the search for income has become difficult.
‘We believe that building a portfolio that delivers the combination of companies that pay good dividends with others that also have the prospect of long term capital growth, will provide an increasingly relevant investment solution for many investors.’
BlackRock will be entitled to a base fee at 0.6 per cent per annum but will not be charged for the first three months of the new management contract.
The base fee and performance fee will be capped at 5 per cent of the net asset value of the company.