Tuesday, 28 January 2014

Edinburgh IT - Change of Manager

Woodford                       Barnett 
Following the decision by Neil Woodford to leave Invesco Perpetual last October (see previous post), the board of Edinburgh have now decided to stay with Invesco and have appointed Mark Barnett to take over as manager from today.

Mark Barnett joined Invesco in 1996 and has managed their UK Strategic Income fund which has returned over 60% in the past 3 years.

The Board has agreed amendments to the Company's investment management agreement including changes to the management fees which from 1st April 2014 will comprise a flat rate fee of 0.55% per annum of market capitalisation with no performance fee. The Board has also agreed with the Manager a reduction of up to £7.5 million in the amount of any performance fee in respect of the current financial year ending 31 March 2014; this will mitigate the portfolio transition costs.

Jim Pettigrew, the Edinburgh's chairman, said: ‘Mark shares the same active, value-driven investment approach and long-term focus as Neil Woodford and comes to us with an excellent track record built up over many years of managing money.'

I am happy with this decision and particularly with the reduction in the annual management fee and agreement to remove any performance fee.

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