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24 October 2019
Woodford Patient Capital Trust plc
Portfolio Manager Appointment
The Board of Woodford Patient Capital Trust plc (the "Company") is pleased to announce that it has agreed heads of terms to appoint Schroder Investment Management Limited ("Schroders") as the Company's portfolio manager. Shortly following the appointment, which is expected by the end of 2019, the Company will be renamed Schroder UK Public Private Trust plc.
Schroders intends to manage the portfolio in line with the Company's existing investment objective and policy. It will bring together its successful and established investment approach across both quoted and unquoted companies to manage the Company for the long-term, in support of positive outcomes for shareholders and British enterprise.
Schroders has extensive experience across both public and private markets and has the relevant sector expertise, including across healthcare and technology, and will operate a team-based approach to manage the Company's portfolio. Schroders' beliefs are aligned with the Company's philosophy of identifying and providing access to investment opportunities irrespective of public or private ownership structure.
Susan Searle, Chairman, commented:
"Following a competitive process, we are delighted to be appointing Schroders as the Company's portfolio manager. 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."
The Board has agreed a fee structure which aligns the interests of shareholders with those of the incoming portfolio manager. On appointment, Schroders will not take a management fee for three months; thereafter Schroders will be paid a management fee at the rate of 1.0% per annum on market capitalisation up to £600 million and 0.8% per annum thereafter.
There is no performance fee payable until 31 December 2022, at which point Schroders will be eligible to a fee of 15% of any excess returns above a NAV per share of 77p (the latest reported NAV per share is 63.23p as at 22 October 2019). Thereafter, a performance fee of 15% of any performance above a hurdle of 10% of net assets each year will be payable, subject to a high watermark.
Further details will be announced following Schroders' formal appointment.
This announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.
Ed Berry / Tom Blackwell 0203 727 1046 / 1051
Background on Schroders
Schroders has been managing investment trusts since 1924. Schroders has a highly specialised global Private Equity capability with 20 years' experience managing $9.8 billion globally, focused on direct investments, co-investments, secondaries, and fund investments. Schroders' private equity team employs over 100 people globally and manages capital for some of the largest and most highly regarded institutional investors and pension funds.
In the public market Schroders manages £160 billion in equities and employs over 150 investment professionals. It has a fundamental approach to analysing listed companies making it highly suited to identifying the best of British companies.
Schroders has an institutional risk framework, with strong governance and risk controls hard-wired into its investment processes.
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