Invesco Perpetual Keep Its Key Trust After Star Manager Departs

Anna Hallissey

29 January 2014

has retained control of the Edinburgh Investment Trust despite losing its A-list manager with a cut in performance fees.

Mike Barnett will take the reins from EIT’s portfolio manager, Neil Woodford, a celebrity of the fund management world. He announced his departure last October.

As part of EIT’s decision to let Invesco continue to oversee its operations, management fees will comprise of a flat rate fee of 0.55 per cent per annum of market capitalisation, and performance fees will be stripped as of 1 April.

Barnett has been with Invesco Perpetual for 17 years in its UK equities team, and is set to head the department at the end of April. He will also take over the management of the Invesco Perpetual High Income Fund and the Invesco Perpetual Income Fund from Woodford.

After Woodford’s departure, a celebrity of the fund management world, £2 billion ($3.3 billion) was withdrawn from the two Invesco Perpetual income funds, as reported by The Daily Telegraph in December.

The portfolio transition costs will be alleviated by a reduction of up to £7.5 million ($12.4 million) in the amount of any performance fee in respect of the current financial year ending 31 March 2014.

Barnett’s appointment as portfolio manager followed lengthy deliberations from the EIT board, considering Invesco Perpetual’s strategy and investment style to achieve the Trust’s objectives of providing a riding income and long term capital growth.