woodford exit investment trust edinburgh investec

Sponsored by iShares

Ready to rethink your portfolio? Putting cash to work with bond ETFs

17 October 2013

|

Normal
0

false
false
false

EN-GB
X-NONE
X-NONE

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:””;
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin-top:0cm;
mso-para-margin-right:0cm;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0cm;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-fareast-language:EN-US;}

Despite the trust’s board keeping its cards close to its chest following Woodford’s departure date being set, the popular UK growth and income vehicle took the strain as investors trimmed their holdings.

However shrugging off concerns, Investec’s wealth division moved quickly and lifted its holding from 3% to just over 4%, pouncing after Edinburgh moved to a 1.5% discount.

Analysts had widely expected the £1bn trust to come under pressure following Woodford’s decision to exit Invesco next April. In similar situations, such as when Richard Buxton left Schroders to join Old Mutual Global Investors, investment trusts have typically borne the brunt of early selling, with outflows later being picked up in open-ended funds.

Brokers at Numis said they would not be surprised if the board of Edinburgh Investment Trust eventually held a beauty parade for a new manager, with Woodford, who is set to launch a firm of his own, a likely candidate to win the mandate.

But speaking following the initial announcement about Woodford’s departure, Edinburgh’s board said the news would not result in an immediate change.

The board will review carefully with its manager their proposed future arrangements for the management of the company and will make a further announcement in due course,” it said.