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Prices & Quotes - UK Markets - Edinburgh Inv Trust (EDIN)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Up 636.00p
Change Today:
8.00p
Market Cap:
£1,095.08m
Sector:
Equity Investment Instruments

Funds feature: Invesco eyes considerable outflows while Edinburgh IT could rebound

Date: Wednesday 16 Oct 2013

LONDON (ShareCast) - The shocking resignation of Invesco Perpetual's superstar fund manager Neil Woodford, who manages almost 30bn pounds spread out over five funds, has had repercussions across the industry.

Two listed vehicles in particular, Perpetual's US parent Invesco and FTSE 250-listed Edinburgh Investment Trust, have seen their shares slide after Woodford announced he was leaving in April to set up his own business focused on longer-term investing.

“My decision to leave is a personal one based on my views about where I see long-term opportunities in the fund management industry,” he explained.

“My intention is to establish a new fund management business serving institutional and retail clients as soon as possible after April 29th 2014,” he said, adding that he would elaborate once he had left Invesco.

Woodford manages Invesco Perpetual 's High Income fund and Income funds, the UK equity components of the Monthly Income Plus fund and the Invesco Perpetual Distribution fund, together with St James's Place fund mandates and the Edinburgh investment trust.

Shares in New York-listed Invesco were down 6.4% on Wednesday, as the company and its investors must be fearing even worse outflows than those seen at rival Schroders, which sluiced out over £1.1bn in the quarter after its own star fund manager Richard Buxton left in March.

Buxton managed a comparatively tiny £4bn compared to Woodford's economy-sized domain, which represents around half the entire funds managed at Invesco's UK office.

The London-listed Edinburgh investment trust is relatively much smaller in comparison, at not much over £1bn after its shares fell a further 4.4% on Wednesday after losing 5% the day before, but it has a unique power that much larger Invesco does not.

Woodford remains at the helm of the trust for now, and the unique structure of investment trusts means that there is a possibility that Woodford could continue as manager once he leaves Invesco.

Investment trusts are structured with a board of directors that appoints an investment management company, which in this case is Invesco. But if an individual manager leaves, the board of the trust can switch control of its investments over to wherever he or she moves.

Even though the board pointed out in a statement on Wednesday that there was no immediate change it was not enough to persuade some investors not to beat a retreat.

The share price fall puts the fund at a discount of 3.1%, which analysts at Investec put in perspective by noting that the widest level of discount the fund has traded at since 2010 is around 4.1%.

In charge of the trust since 2008, Woodford has delivered a share price return of 143% and net asset value growth of 108.5% over the last five years.

The board said it will “carefully” review options with Invesco and its proposed individual replacement, but the discount looks likely to endure for a while, especially with Investec suggesting that as investment houses whip Edinburgh off their buy lists, it will “remove some of the natural buyers from the market”.

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EDIN Market Data

Currency UK Pounds
Price 636.00p
Change Today 8.00p
52 Week High 637.00p
52 Week Low 423.00p
Volume 235,886
Shares Issued 172.18m
Market Cap £1,095.08m
Beta 0.02

Performance Indicators

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EDIN Dividends

  Latest Previous
  3rd Interim 2nd Interim
Ex-Div 06-May-21 04-Feb-21
Paid 28-May-21 26-Feb-21
Amount 6.00p 6.00p

Trades for 07-May-2021

Time Volume / Share Price
16:35 108 @ 636.00p
16:35 47 @ 636.00p
16:35 488 @ 636.00p
16:35 4,872 @ 636.00p
16:35 13,811 @ 636.00p

EDIN Key Personnel

Chair Glen Suarez