Kevin Doran, chief investment officer at AJ Bell comments on the appointment of Schroders to manage the Patient Capital Trust:
“The appointment of a new investment manager will be a source of relief for investors in the Patient Capital Trust, who have been more than patient during a period of uncertainty.
“Schroders have clearly got a challenge on their hands to sort out the holdings in the trust. There is likely to be a long period of realignment where the manager looks to determine which assets to keep and which to sell and even then, a buyer will have to be found for the assets they wish to dispose of. This is likely to be a long process and will incur transaction costs for investors.
“The payment of a management and performance fee more akin to a hedge fund may irk anyone initially attracted to the trust by the original charging structure, but for the rest, the opportunity to draw a line under the Woodford situation and move on will be, no doubt welcome.
“Another positive may be that the market responds well to this change and the significant discount closes a little.”
