Scottish Widows Investment Partnership (SWIP) last week announced the first casualty of its cost-cutting drive with a move to wind up Peter Cockburn's UK Select Trust.
The group is planning a major reorganisation of its £54bn equities business, with some strategies set to shift from an active to a passive investment approach driven by quant models. SWIP has given the board of the £25m trust six months' notice to terminate the investment management agreement. This could lead to the trust being wound up as SWIP is the largest shareholder, with a 28.9% stake. Investment trust analyst Numis fears this could be the first of many capital withdrawals from the closed-ended space. SWIP's investment trust portfolio is managed by Tony Foster, a member of...
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