11:58 Wed 25 Jan 2012
Schroders plans Invista trust review and rebrand
Schroders is planning to rebrand Invista Foundation Property, after agreeing to take on the real estate investment company last year.
Schroders entered into talks to take on the £195 million trust last April, and at the tail-end of 2011 it emerged the asset manager was on the cusp of appointing Duncan Owen, the founder and former chief executive officer of Invista Real Estate Investment Management as its new head of property funds.
Unveiling its interim management statement to investors, which revealed the trust's net asset value (NAV) at the end of December stood at £168.9 million, or 47.5p per share and a 0.2% increase from September, the trust's board said it planned to seek approval for a change to the vehicle's name to reflect its new management.
'Schroders' appointment is expected to give the company future annual cost savings in the region of £1.8 million...Following the appointment of Schroders, shareholder approval will be sought to change the name of the company to Schroder Real Estate Investment Trust,' shareholders were told.
Although Schroders is conducting a strategic review of the trust, Wealth Manager understands it will not make any changes to the vehicle's approach, unless warranted by market conditions.
Nick Montgomery, part of the Schroders Property Investment Management team, said: 'As part of winning the mandate and as part of that process the strategy that Schroders recommended was a continuation. He also pointed out that this strategy involves the continued improvement of the vehicle's dividend cover and loan to value ratio.
The trust currently trades at 32.5p per share and at a 40% discount to NAV per share.
Investment company news brought to you by Citywire Financial Publishers Limited. 
