Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Laxey takes another bite of Gartmore trust

Trustbuster Laxey Partners has again increased its stake in the struggling Gartmore Select Japanese investment trust.

Activist shareholder Laxey Partners is run by Colin Kingsnorth and Andrew Pegge and has a reputation for buying into trusts on large discounts to net asset value and forcing them to wind-up, restructure or buy back shares.

At the end of last week Laxey bought another 100,000 shares in the trust, lifting its total holding to just over 3.8 million shares, or 19.11% of the company.

No-one at Laxey Partners was available for comment. Its stake is big enough to allow it call a shareholders' meeting to discuss Gartmore Select Japanese's future.

The £10 million Gartmore Select Japanese trust (GSJ) has a poor long-term performance record. Over five years its net assets have dropped 45%, compared with an average drop of just 3% among trusts in the Japan sector.

Last summer Gartmore poached Virgil Adams from Fidelity Investments to boost performance.

Adams, now based in Tokyo, took over management of the trust in July, but short-term performance has so far failed to improve. Results last month for the six months to November showed a substantial underperformance of the benchmark.

The trust's discount appears to have been narrowed by Laxey's recent aggressive buying, and Gartmore Select Japanese now stands on a 10% discount to NAV, compared with its average 13% over the past 12 months. Trusts in the Japan sector stand on an average current 15% discount.

Shares in the trust are down 0.25p at 25.75p.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter