Woodford Patient Capital shares hit record low, but board tight-lipped

After the announcement that Woodford Equity Income fund is to be wound up, Woodford Patient Capital Trust’s share price fell notably.

The board of Woodford Patient Capital has remained tight-lipped on Neil Woodford’s position as manager of the investment trust in the wake of the news that LF Woodford Equity Income is to be wound up.

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Following the announcement this morning (15 October) that Link, the authorised corporate director of the suspended Woodford Equity Income fund, has decided to close down the fund permanently, Woodford Patient Capital Trust’s share price has fallen notably, declining by 6.8% to 35.1 pence per share at the time of writing, 9.30am. This represents an all-time low.

The falls come amid uncertainty as to whether Neil Woodford will remain as manager of the trust. At the end of September, during the release of the half-yearly results for Woodford Patient Capital Trust, Susan Searle, the investment trust’s chairman, noted the possibility of replacing Neil Woodford as manager of the trust can “take time” and that “ultimately the board’s decision will be that which is in the best interests of protecting long-term value for shareholders”.

This morning the board re-issued its previous stance, stating: “As previously announced, the board has been undertaking a review of the company's management arrangements and will make a further announcement in due course.”

It added that it “notes the statement by Link Fund Solutions Limited not to re-open LF Woodford Equity Income and instead to wind it up as soon as practicable”.

The half-yearly results for Woodford Patient Capital Trust showed losses of 26% in the first six months of the year, in what Searle called “the most challenging period for the company since it floated in 2015”.

Woodford Patient Capital Trust has been under pressure for the past few years; however, the trust started to see major losses following the suspension of Woodford Equity Income (WEIF) in early June.

Some of the trust’s holdings have suffered from the “forced sales” of holdings held in LF Woodford Equity Income. Both the trust and fund have had significant portfolio overlaps.

Added to this, the negative sentiment surrounding Woodford following the suspension of LF Woodford Equity Income has likely led investors to sell out of the trust.

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Comments

income focus fund

what will happen to this fund

False NAVs

Very surprised there aren't lawsuits coming out of his ears.

In all likelihood, liquidiation of the Equity Income Fund will reveal the large gap between the actual value and its last posted NAV. Good chance that the same would apply to the other Funds. Therefore, a case could surely be made that investors entered and left the Funds on the basis of misleading/manipulated/inflated NAVs while the Manager earned fees on the same basis.

Oh, and once again, the FCA has been sjown to he helpless, clueless, incompetent and basically irrelevant.

Woodford

How odd that in a regulated fund overseen by the FCA the NAV for WPCT should be so loosely and to my mind falsely calculated. The investment in WPCT was always sold. as a long term play. Paradoxically the longer the investor has stuck to this mantra the more money they've lost.. Clearly Mr Woodford enjoys protected status as.part of the Financial Establishment Omerta that exists and is at total. odds. with the ordinary investor's interests.. Why should we be surprised.?.I'm not. The FCA have always been a toothless.tiger when it comes to representing the ordinary investor. Clearly appealing to.the decency of Mr Woodford as several have done has been a complete and utter waste of time.

a question of criminality

It is possible that Woodford has criminal charges to answer, not necessarily alone (in this scenario he's hardly been a lone trader) but until this is resolved, until the full facts are available and assessed, it may be appropriate for him to surrender his passport.

Woodford

The FCA asleep at the wheel methinks. Most definitely of for the first time. Not exonerating the dishonest and incompetent Woodford by any means but lie to medium risk investors sureky deserve better protection than this.

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