Woodford to charge Patient Capital performance fee for gains over 10%

Woodford Investment Management (WIM) is to take a 15% performance fee of any excess returns above the 10% annual return target on its Patient Capital investment trust.

The trust, unveiled by WIM earlier this month, will charge no annual management fee alongside this charge, a move the company said will align manager Neil Woodford's interest with shareholders. WIM said today the performance fee will be subject to a high watermark, meaning it will not be able to charge the fee simply when making up previous underperformance. Ongoing annual expenses are not expected to exceed 0.35%, the group added. It said 80% of the performance fee will be payable in the trust's shares, with the remainder in cash to contribute toward any tax liability of the manager ...