New blow for fund boss Woodford as trust writes down value of holdings
UNDER-FIRE fund manager Neil Woodford has been dealt another blow after his investment trust was forced to write down the value of three of its holdings.
Shares in the Woodford Patient Capital Trust dropped as much as 8% at one stage after it disclosed the move, which it said would reduce its net asset value (NAV) by another 3.1p a share.
While it did not reveal which holdings were affected, it said: “These valuation adjustments reflect the challenging fundraising environment for these businesses, which may impact their ability to, or the level at which they may be able to, raise capital in the near-term.”
The trust is a listed business that contains the various investments Mr Woodford and his suspended equity income fund have sunk funds into.
It comes after the controversial suspension of Mr Woodford’s £3.1bn flagship fund was extended on Monday for another 28 days. The Woodford investment trust has seen its shares
halve in value so far this year as it has suffered since the star fund manager froze investors out of accessing money they have in the equity income fund. It said earlier this month that the value of the trust’s biggest investment holding, Benevolent AI, halved, sending shares tumbling. The trust’s NAV now stands at 65p a share, down from 89.7p at the end of May, just before its sister fund was gated on June 3.
Relations have been rocky between Mr Woodford and the trust after he sold £1m of shares to fund a tax payment.