Schroder Investment Management is set to assume the responsibilities of crisis-hit Woodford Patient Capital Trust (WPCT) as its portfolio manager.

The development comes a week after the exit of Neil Woodford following the failure of his flagship Equity Income Fund (WEIF).

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WPCT and Schroders agreed to heads of terms, as a result of which, the latter is expected to take up the new role by the end of this year.

Following the appointment, WPCT will operate under the name Schroder UK Public Private Trust.

As its portfolio manager, Schroders will not take a management fee for three months. After this period, it will receive an annual management fee of 1% on “market capitalisation up to £600m and 0.8% per annum thereafter”.

Schroders will also charge a performance fee from 2023.

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WPCT chairman Susan Searle said: “Following a competitive process, we are delighted to be appointing Schroders as the Company’s portfolio manager.

“Its careful and considered long-term approach to investment, backed by its substantial research resources in both public and private assets, makes it the natural choice to manage the Company’s portfolio.”

Schroders will retain its current investment policy while managing the new portfolio.

Earlier this month, it was announced that the Equity Income fund will be wound up. In June, the fund was suspended from trading following a sudden increase in investor withdrawals.

The Equity Income was administered by LinkFund Solutions.