Troy in deal to take over Glasgow Income Trust

ABERDEEN Asset Management has sold the mandate for the Glasgow Income Trust to fund group Troy Asset Managers for an undisclosed sum.

The move follows a strategic review of the 40 million Glasgow Income Trust, which was started last September.

The new managers, which take over the investment trust on 1 August, plan to drop the "Glasgow" name and re-brand it the Troy Income & Growth Investment Trust. Aberdeen will continue as company secretary for the trust.

The Glasgow trust was launched in 1988, but its performance has been relatively volatile in recent yeas.

Francis Brooke, who manages Troy's Trojan Income Fund, will manage the Glasgow Income Trust. He said an extraordinary general meeting will be held in September to approve changes to investment policy.

A fundraising exercise will then be carried out in an attempt to increase the size of the investment trust.

"We plan to change the trust from high income to income and growth and would like the fund to be materially bigger," he said. "If the fundraising is successful, the final chapter will be the name change."

Brooke added that the sort of companies he wants the trust to invest in, mainly long-term, defensive stocks, are relatively cheap at the moment.

The investment objective for the trust will be similar to the Trojan Income Fund. It has been the top-performing fund in its sector over one, two and three years, according to Lipper fund analysis.

• Daniel Godfrey, the director general of the Association of Investment Companies, yesterday stepped down after 11 years in the role. His deputy, Ian Sayers, takes over temporarily until the AIC board appoints a permanent replacement.