View the article online at http://citywire.co.uk/money/article/a730692
Barnett replaces Woodford on Edinburgh Investment trust
Mark Barnett will assume management of Neil Woodford’s £1.11 billion Edinburgh Investment trust.
The board and Invesco Perpetual have agreed a flat fee of 0.55% a year and a £7.5 million reduction in the upper limit of any performance payment to mitigate the portfolio transition, it added.
The news provides long-awaited certainty for investors who were considering whether to stick with the trust after the news that Woodford was stepping down from Invesco. The trust has fallen to a discount of -2.8%.
City analysts were upbeat on the appointment, pointing out that significant changes to the existing portfolio were unlikely: 'Barnett is an experienced fund manager with strong credentials and an impressive track record in UK equity income investing,' commented Paul Kavanagh of Killik & Co. 'With no wholesale changes to the portfolio expected the fund should continue to provide exposure to an attractive basket of high-quality companies.'Investment trust analysts at Numis agreed the trust would be in 'safe hands' under Barnett. But they questioned whether Barnett needed to run three UK equity trusts: Edinburgh, Keystone and Perpetual Income and Growth Investment Trust (PIGIT). 'We believe there is a strong case for consolidation of the trusts, in particular regarding a potential merger of PIGIT and Keystone, which have very similar portfolios,' they said.
Jim Pettigrew, the trust's chairman, said: ‘Mark shares the same active, value-driven investment approach and long-term focus as Neil Woodford and comes to us with an excellent track record built up over many years of managing money.'
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by Daniel Grote on Sep 16, 2014 at 13:49