Four lessons for ITs following Patient Capital's record launch

Jeremy Beckwith, director of manager research at Morningstar UK, analyses the key lessons that can be learned from the launch of Neil Woodford's new vehicle last month

1. Investors will buy closed-end funds when the structure adds value to their portfolio The illiquidity of the fund, due to the unquoted nature of the majority of the fund's expected portfolio, means an open-ended vehicle could not be countenanced by the group. Private equity investment trusts, which Patient Capital is closest to in nature, have a well-established history and pedigree in the UK market, and though the share prices of these vehicles have proved to be volatile in the short term, the fact they provide long-term fixed capital to managers has enabled many to deliver excellen...