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Woodford cuts unquoted holdings in flagship fund

Concept of green plant grow on British Pound currency note.Woodford Investment Management will switch out exposure to unquoted companies in its flagship £4.6bn Woodford Equity Income Fun in favour of shares in the Woodford Patient Capital Trust.

Both funds are run by Neil Woodford.

WEIF has transferred five unquoted holdings – Atom Bank, Carrick Therapeutics, Cell Medica, RateSetter and Spin Memory – worth £72.9m to WPCT.

WEIF intends to further continue reducing  the fund’s exposure in unlisted companies by moving to shares in WPCT.

WPCT’s board believes that the move will increase trust’s exposure to companies it deems as the “the next wave of disruptors”. W

oodford IM also said it would move its Woodford Income Focus Fund from the IA Specialist sector to the IA UK Equity Income sector.

The asset manager aims to offer a clear directory for individual types of investors, where WPCT is aimed at investors looking for a higher exposure to early-stage companies,  the Woodford Equity Income Fund aims to provide its investors a returns boost by investing in companies with sustainable dividend growth, and the Woodford Income Focus fund is invested predominantly from UK companies.

Woodford Investment Management chief executive Craig Newman says: “The Woodford Equity Income Fund has always aimed to deliver a growing income stream and a total return by investing predominantly in listed stocks, with some exposure to unquoted holdings to generate excess returns from disruptive technologies.

“These objectives remain firmly intact.Neil [Woodford] is as passionate on the unquoted asset class as ever but having listened to feedback from clients we believe that moving the exposure to the asset class via a collective fund rather than individual unquoted stocks makes sense – both operationally and from an investor view.”

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  1. It has seemed to me that Mr Woodford have gambled rather than invested. A small proportion of unquoted shares may be OK (see RIT investment trust for example) but I think that Mr Woodford overdid it. Compare his unsuccessful approach to that of Terry Smith or Nick Train.

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