Trust experts welcome Schroders win of WPCT mandate – Questions remain unanswered
Investment company analysts have welcomed the appointment of Schroders as investment manager of Woodford Patient Capital Trust (WPCT) but await further clarity on the experience of the team and how the existing portfolio will be managed to avoid the fire-sale of assets.
….Meanwhile James Carthew, founder and head of investment company research at QuotedData, said Schroders was “not a bad choice” and felt the fee structure was positive as, being based on market cap, it would incentivise the manager to narrow the discount.
“We have said before that we don’t think a fire sale of assets would be in the best interests of shareholders but we appreciate that some shareholders will be looking for an exit. This plan doesn’t address that, however.”
Carthew said if nothing derailed the board’s plan, Schroders would likely seek to bring down the gearing and revisit the valuations in the portfolio.
He added: “Schroders will have its work cut out….
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