Giving your fund manager the boot

Article Abstract:

UK investment trusts can be taken over, while unit trusts cannot, but investment trusts tend to have boards that follow the lead of fund managers. Directors of investment trusts are nominally independent but may be appointed to a number of the manager's trusts so have little incentive to create problems. Managers of investment trusts also tend to have long contracts compared with pension fund managers. Regulations may be changed to provide greater protection for shareholders. Meanwhile unit trust investors face more severe difficulties in changing managers and may have to sell units as an alternative.

Laws, regulations and rules, Mutual funds

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Reform on the way

Article Abstract:

United Kingdom investment trusts are divided on corporate governance issues. Fund managers do not agree on whether no director of a trust should be linked to the fund manager, with some seeing this as necessary, and others seeing a link between fund and trust as beneficial. Foreign and Colonial has set up indepedent boards, while Henderson and Invesco see benefits from having fund manager representatives on investment trust boards. M and G is cutting the number of its representatives to one board member.

Management, Corporate governance

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How the star fund managers cope with falling share prices

Article Abstract:

United Kingdom investment and unit trusts have had to cope with drops in stock prices, and they have varied in the extent to which they have been affected. Manek Growth Fund was hit by a move against stocks in smaller firms, but Jayesh Manek sees this as temporary. Virgin Index Tracking has seen a drop of 13.7% over four months, which is less than the drops seen by other funds surveyed. Witan Investment Trust has also suffered a low drop due to a low proportion of the fund being exposed to Asia.

Portfolio Management

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