Invesco Perpetual's Neil Woodford will not run any other investment trusts after taking on the £1bn Edinburgh mandate today and the group has sounded a cautious note on extra mandates he would consider in the future.
Woodford runs billions of pounds in UK money including £14bn across his Income and High Income funds.
However, Edinburgh will be his only investment trust as he has agreed not to manage other vehicles as part of the deal.
The move has reopened the debate about how much more money Woodford wants to run and how many other mandate he will be able to take on safely.
Invesco Perpetual head of specialist funds Graeme Proudfoot says the group would not consider other mandates for Woodford up to a point but they would be judged on an individual basis.
He says: “We are looking very carefully at both the money Neil runs and the number of mandates.
“On the amount of money he runs we are very relaxed market liquidity wise. Neil is a buy and hold investor and he expects to hold a stock for around five years. His requirement for market liquidity is lower than expected relative to the market, particularly when market turnover is going up.
“In terms of separate mandates it depends what they look like. For example, physically there is a critical number of board meetings Neil can attend which would take him out of the office.”
Woodford currently manages the Invesco Perpetual High Income, Income and UK Equity Pension funds. He also runs the equity portion of Invesco Perpetual's Distribution and Monthly Income Plus funds and manages funds for a number of other financial groups, including St James's Place.
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