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.'
News sponsored by:
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
What can SLI bring to the table for those who want to put their money into investment trusts?
More about this:
Look up the investment trusts
Look up the fund managers
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.
by Daniel Grote on Jan 27, 2015 at 10:50