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Investec exploits Woodford exit to raise Edinburgh trust stake above 4%
by Robert St George on Oct 17, 2013 at 14:48
Investec bought another 57,000 shares in the trust yesterday, worth £325,000, meaning it now owns 4% of Edinburgh.
Since it was revealed that Woodford (pictured, left) would be leaving Invesco in April, Edinburgh’s share price has fallen by 5%. This has taken it from a 5% premium to its net asset value at the start of the week to a 1.5% discount today.
Nick Sketch, senior investment director at Investec Wealth & Investment, noted that this had diminished the ‘valuation anomaly’ whereby Edinburgh traded at a premium to Mark Barnett’s Perpetual Income & Growth trust. Sketch supposed that Barnett (pictured, right) was the most likely candidate to succeed Woodford on the fund, adding that Investec had invested more heavily in Barnett’s trusts even before this week’s events.
‘We would be surprised if Barnett taking over was a problem in anybody’s mind,’ said Sketch. ‘And we’d not be surprised at all if Edinburgh’s portfolio doesn’t change in the months until Neil leaves.’
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