BlackRock is set to take on the mandate for the £485m British Assets investment trust from F&C Investments as the trust seeks to restructure itself as a multi-asset income product.
The board of the trust is seeking shareholder approval to convert the trust from a global equity income strategy to a multi-asset strategy.
Adam Ryan, head of the BlackRock diversified strategies team, will take on the management of the trust when the changes are approved, which is expected to be in early 2015.
BlackRock will invest 40 per cent of the trust’s assets in UK equity income stocks, with the remaining 60 per cent managed on a tactical asset allocation basis.
The board of the trust said it would incur all of the costs for the manager switch and there would be no change in the 0.4 per cent management.
The changes on the trust have been designed to take advantage of the expected increase in demand for stable, income-producing investments following the changes to pensions regulations.
The objective of the trust will be changed to concentrate on growing its dividend “at least in line with inflation” and the trust will target a total return of the consumer price index (CPI) plus 4 per cent per year.
The board said it expected the changes to “attract a new investor base and that the Company will grow, as well as deliver shareholder value”
