Switch to Edinburgh while it's cheap

Lowland aims for a higher than average return with growth of both capital and income over the medium to long term. The portfolio holds a broad spread of predominantly UK companies of differing sizes with normally not more than half by value coming from the largest 100 UK companies, and the balance from small- and medium-sized companies.

Its benchmark is UK Flex Cap Equity and it is most heavily invested in general industrials (25.1 per cent), financials (22.2 per cent) and materials (10.2 per cent.) Its top holdings are Senior (SNR) (4.1 per cent), Royal Dutch Shell (RDSB) (3.4 per cent) and Carclo (CAR) (2.4 per cent).

It's performed excellently over the past five years, producing a 311.62 per cent return compared with 99.69 for the benchmark (to 28/01/14). But we reckon it could be a smart move to replace the UK equity income allocation in your portfolio with Edinburgh Investment Trust.

Mark Barnett took over management of the mega-sized £1.1bn trust from Neil Woodford on 28 January. The fund's rating may have suffered with the uncertainty of who would run it over the last few months but it is now trading on a 2.78 per cent discount - meaning it's a bit of a bargain for investors. And if Mr Barnett's track record is anything to go by, the trust has a bright future ahead of it.

Over five years to 31 December 2013, Mr Barnett returned 130.7 per cent with his Perpetual Income and Growth trust compared with Woodford's 135.8 per cent with Edinburgh Investment Trust. Over the same period, the FTSE All-Share has only managed to return 95.16 per cent.

And there are likely to be some changes afoot for Edinburgh Investment Trust: Mr Barnett is likely to manage it in a different manner to Mr Woodford, according to Adrian Lowcock, senior investment manager at Hargreaves Lansdown. He says he is less likely to hold big positions in companies within the fund, and he is less inclined than Mr Woodford to make big calls on sectors, such as pharmaceuticals and tobacco.

In addition, Mr Barnett is likely to run a more concentrated portfolio holding fewer companies than his predecessor. "For the time being we think investors should stick with the new manager as he is capable and has a proven track record," added Mr Lowcock.

Read more on what next for the Invesco trusts

Edinburgh has a 12-month yield of 3.75 per cent compared with 2.73 per cent for Lowland. The Edinburgh Trust is cheaper than Lowland, too, with ongoing charges of 0.71 per cent compared with 0.87 per cent - and will drop its performance fee from April.

Its performance hasn't quite matched up to Lowland in the past, but it has consistently beaten its benchmark index, the FTSE All-Share, over one, three and five years, producing a 117.39 per cent return over five years. And this week's manager changeover marks the beginning of a new era for the trust. Get in now before it trades on a premium again. Buy.

Edinburgh Investment Trust performance