Investments  

Troy takes on management of Electric and General fund

Troy takes on management of Electric and General fund

Troy Asset Management is set to replace Taube Hodson Stonex Partners as the manager of the Electric & General fund on July 1.

The fund is unusual among open-ended products in that it has an independent board, something which is common on investment trusts but not Oeics.

Once the management change takes place, the fund will be run by Troy’s global equities team, headed by Gabrielle Boyle.

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Ms Boyle has been manager of the £100m Trojan Global Equity fund since November 2011, when she joined from NewSmith Capital Partners.

Since taking on the Trojan fund, it has delivered a return of 45.6 per cent, underperforming the IA Global sector average of 53.9 per cent and the rise in the MSCI World index of 69.9 per cent.

Gerry Aherne, chairman of the independent board of directors of Electric and General, said the board had been “impressed with Troy’s investment strategy and track record, which complements the fund’s objective of seeking to deliver consistent investment returns over the long term”.

Electric and General converted from an investment trust structure to become an open-ended investment company (Oeic) in August 2011.

However, the fund retained some of the characteristics of an investment trust, such as an independent board and holding an annual general meeting at which investors can vote on policies.

But since moving to the open-ended structure, the fund had suffered nearly £40m of outflows, according to Numis Securities, and has not had a single month of positive net inflows.

Since its restrcuture, the fund has delivered a return of 57.4 per cent, broadly in line with the sector average but underperforming the MSCI World index.

When Troy takes on the fund, its fee structure will be changed from the current 0.3 per cent annual fee plus a 10 per cent performance fee to a more standard 0.75 per cent annual management charge and no performance fee.