Pacific Horizon cuts Jupiter Tyndall link

THE BOARD of Pacific Horizon Investment Trust has cancelled Jupiter Tyndall's pounds 230,000-a-year investment management contract as the row over the trust's future worsens.

It proposes to appoint the Scottish investment house Baillie Gifford, which will charge an annual fee of only pounds 121,000, and widen the investment parameters of the fund to include Hong Kong, Singapore and Malaysia in addition to less-favoured Asian markets.

But the changes will be subject to a shareholder vote at an extraordinary meeting on 18 August. In the meantime the board will conduct day-to-day management.

At the same meeting Jupiter Tyndall will put forward its proposals for the trust's future, which include the removal of the chairman, Garnet Harrison, and two other directors.

Jupiter Tyndall enraged the board last week when it said it was talking to another investment trust with a view to selling its 16 per cent equity stake and 39 per cent warrant stake and organising a takeover of the trust.

The board said it was 'astonished' and has asked the Takeover Panel to make Jupiter Tyndall reveal the bidder's identity and include it in the negotiations.

If Jupiter's talks do not lead to a bid it will put its existing proposals for a capital reorganisation to next month's meeting.