LONDON (ShareCast) - (Sharecast News) - Woodford Patient Capital Trust said on Thursday that it has appointed Schroders as it new portfolio manager following the departure of Neil Woodford.
Following the appointment, which is expected to occur by the end of the year, the company will be renamed Schroder UK Public Private Trust.

Woodford said Schroders will manage the portfolio "in line with the company's existing investment objective and policy".

Chairman Susan Searle said: "Its careful and considered long-term approach to investment, backed by its substantial research resources in both public and private assets, makes it the natural choice to manage the company's portfolio.

"I would like to thank our shareholders for their support throughout this process as we have worked to put in place the right portfolio manager against the background of challenging circumstances. Throughout the process, the board has had a clear focus on achieving an outcome that protects and enhances long-term shareholder value and we believe Schroders is best placed to deliver this. A well-managed handover is underway to protect shareholder value and deliver long-term performance for all shareholders."

On appointment, Schroders will not take a management fee for three months. After that, it will be paid a management fee at a rate of 1% a year on market capitalisation up to £600m and 0.8% a year thereafter.

Earlier this month, one-time star stockpicker Neil Woodford resigned as fund manager for Woodford Patient Capital Trust after his flagship equity income fund was wound down by administrators.

Kevin Doran, chief investment officer at AJ Bell, said 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."

At 1350 BST, Woodford Patient Capital Trust shares were up 28.5% at 39.00p.

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