The Woodford Patient Capital investment trust has been renamed as the Schroders Public Private trust.
The £619m trust was created by Neil Woodford as a vehicle to invest in unquoted and illiquid investments.
The original intention of the former fund manager had been to invest 25 per cent of the capital into liquid stocks in the FTSE 100, with the dividends raised from those investments used to fund the running of the trust.
But the trust has performed poorly, losing 66 per cent since its launch in 2015.
Mr Woodford did not charge a management fee for running the trust.
But investors will pay a management fee under new manager Schroders, which confirmed it would take over the running of the trust in October, following Mr Woodford’s resignation.
Investors will pay a management fee of 1 per cent on the first £600m of assets, and 0.8 per cent thereafter, though no fee is payable for the first three months.
The trust will be managed by Schroders' private equity investment team, Schroders Adveq, which manages more than £10bn of assets.
Susan Searle, chairman of the trust, wrote in a stock market update this morning (December 16): “I am extremely pleased to announce the appointment of Schroders as the company's portfolio manager.
"Following a smooth handover, the board is confident that the portfolio manager's expertise in both public and private assets, alongside its deep sector experience, will enable the portfolio to deliver sustainable value and positive long-term shareholder returns.
"I have been highly impressed with the Schroders team and their approach, having worked closely with them during the transition. The board and I look forward to keeping shareholders updated as Schroders gets started as our new portfolio manager."
A representative of Schroders said: "Schroders is delighted to have been given the opportunity to manage this portfolio.
"The investment strategy we will utilise for the mandate, with its focus on investment in both public markets and private assets, reflects one of our key strategic growth areas across our business.
"We are also pleased that the borrowing facility has been extended for a 12-month period, allowing time for a considered approach to de-gearing the portfolio and providing the portfolio managers more flexibility in managing the company's assets for the benefit of the shareholders."
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