View more on these topics

Woodford to raise fresh assets for Patient Capital

Neil Woodford New 620x430

Neil Woodford is looking to attract a wave of new cash into his £774.5m Patient Capital Trust in a bid to invest in a number of untapped opportunities.

In an announcement to the the stock exchange, the trust’s board said it is “currently looking at ways it can raise additional capital in the year ahead and will consult with, and gauge interest from, investors”.

The portfolio, which aims to deliver long-term capital growth by investing in both quoted and unquoted UK firms, launched in April last year and Woodford has quickly deployed the money raised by the trust.

The fund, which has a large bias towards the healthcare sector, is now almost fully invested, with the remaining cash all committed, according to Hargreaves Lansdown.

The investment trust currently has 60 holdings and Hargreaves Lansdown head of investment research Mark Dampier expects Woodford would look to add 20 to 30 holdings with any new money.

He says: “Neil Woodford believes there remain plenty of unexploited opportunities in early growth businesses. Investing in these include early-stage companies within areas such as life science, healthcare, energy, utility, technology, industrial and consumer sectors, especially in companies with new disruptive technologies.

“By contrast, he feels many other more mainstream financial assets have already been bid up too far in price.”

Dampier warns, however, that if and when there is a capital raise, a new large tranche might cause the trust’s share price to fall to a discount, to its net asset value, in the short-term.

Since its inception to 12 January, the trust has delivered a total return of -1.45 per cent against an IT UK All-Companies sector average loss of 1 per cent for the term, according to FE Analytics.

Recommended

2

Robert Sinclair: Double trouble for the buy-to-let market

The Government has turned decisively against the private landlord in favour of the first-time buyer. While the various purchase assistance schemes that speckled the last government, culminating in two flavours of Help to Buy, provided welcome support to get people on the housing ladder, it has clearly not been enough. Indeed, it seems a long-term […]

Justice-Fine-Ban-Court-Gavel-Judge-700x450.jpg
1

High profile tax adviser jailed after £6m tax evasion

A high-profile tax adviser and accountant has been jailed for five years for evading more than £6m in tax. Denis Christopher Carter Lunn ran Sussex-based firm Christopher Lunn & Co, whose clients included actress Sadie Frost, actor Sean Pertwee and news presenter Fiona Bruce. HM Revenue and Customs first took action in 2010, when it […]

2

Labour names new shadow pensions minister

Labour has moved its shadow pensions minister Nick Thomas-Symonds to a new role after just five months. Thomas-Symonds moves to a new position within the Work and Pensions team as employment minister, replacing Emily Thornberry, who now fronts the party’s defence policy. He will be replaced by Ashton-Under-Lyne MP Angela Rayner. It comes just days after Thomas-Symonds […]

Cofunds recruits former Fidelity UK boss as operations director

Cofunds has recruited Marc Bulstrode as operations director. Bulstrode, who was previously head of change and business management in Fidelity’s UK business, has been charged with developing Cofunds’ service offering for institutional and retail clients. He has previously held senior roles at Barclays and Old Mutual. Cofunds chief executive David Hobbs says: “It is great […]

Tax allowances and exemptions

Helen O’Hagan, Technical Manager at Prudential, looks into the planning strategies that can deliver considerable tax savings for your clients. Inheritance tax (IHT) Consider Margaret, featured on our Planning Matters family hub, who is a sprightly eighty year old with four children and several grandchildren. She’s recently been widowed and IHT planning is high on […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment