The British Portfolio Trust has announced the appointment of BlackRock as its investment manager, taking over from Allianz RCM.
The decision was taken by the board due to its “overall underperformance against the benchmark since inception”.
The new management will be led by Nick McLeod-Clarke and Adam Avigdori, portfolio managers and co-heads of the BlackRock UK Income fund. The board believes the change will make it possible to attract new investors.
The fund is to be renamed as the BlackRock Income and Growth investment trust and will be moved to the AIC UK Growth & Income sector.
RCM were notified in January of the decision, with BlackRock set to take over from April 1.
BlackRock will take a base fee of 0.6% per annum, but will not be charged for the first three months. The new management will also collect a performance fee based on the net asset value outperformance of its benchmark index, the FTSE All-Share.
Both the base fee and performance fee will be capped at 5% of net asset value of the investment trust.