After Neil Woodford announced he was to leave Invesco Perpetual, the directors said they carefully considered a number of options regarding the future management of the trust. However, an assessment of the fund management resources of Invesco Perpetual and the group's ability to meet the objectives of the trust had led them to conclude that Barnett should take over as manager. There had been some speculation that the trust would pass to Woodford's new group, Oakley Capital Management.
The board also said it had reviewed the charging structure on the trust in light of changing market conditions, seeking to achieve a 'simple, transparent and competitive' structure. The management fee will change from 1st April to a flat rate fee of 0.55% per year of market capitalisation, with no performance fee. The board has also agreed a reduction of up to £7.5m in this year's performance fee to mitigate the cost of transitioning the portfolio.
Chairman Jim Pettigrew said that Barnett shared the same 'active, value-driven investment approach and long term focus' as Woodford and had an excellent track record. The trust's share price rose 1.05% to 579p in early trading. It has risen 13% in price terms over the past 12 months, compared to a rise of 11.9% in the FTSE All-Share. The NAV has risen 18.5%, but the trust moved from a premium to a discount on news of Woodford's departure. The discount is now 2.8%.