Gresham House Strategic put its investment manager, Gresham House Asset Management, on notice as a formality due to a planned strategic review.
Gresham House, a major shareholder in Gresham House Strategic — an independent alternative investment fund specializing in small U.K. and European companies — called for an extraordinary general meeting of GHS to consider a number of proposals. Among its requests was that a strategic review be undertaken by July 12.
GHS agreed Monday to undertake a review. As part of the strategic review, manager Gresham House Asset Management has been served notice as a formality, a regulatory filing said.
"The board of GHS does not wish to pre-empt the results of the strategic review, as it is certainly possible that the existing asset management arrangements will be retained. Nonetheless, the board believes it is prudent to serve protective notice on GHAM," the filing said.
As such, the GHS board has served 12 months' notice to GHAM, which may be revoked at any time.
The strategic review follows five years of strong investment performance and affords "a natural juncture to review progress," a Gresham House statement said.
Another request was that David Potter be immediately removed as chairman and non-executive director of GHS — something GHS and Gresham House had been in talks about for a while, a spokesman said.
GHS announced Mr. Potter's resignation Monday following 18 years in the role. Gresham House said in a statement that his 18-year tenure "is out of step with both the (Association of Investment Company's) Corporate Governance Code and Gresham House's position on good governance as an investor committed to ESG principles."
GHAM was appointed as GHS's investment manager in August 2015. GHS had an almost £52 million ($73 million) market capitalization as of April 20.