More woe for Woodford after Guernsey delisting

NEIL WOODFORD has been dealt a further blow in his struggle to bring his investments into line with market rules, after a developer of luxury Ibiza villas he backed was delisted from the Guernsey stock exchange.

The Woodford Equity Income Fund stake in Sabina Estates, which is chaired by millionaire Anton Bilton, was listed in 2017 as part of an effort by Mr Woodford to lift the proportion of quoted assets in his flagship fund.

He has come under fire for holding too many unquoted or “illiquid” stocks. Under FCA rules no more than a tenth of such a fund’s assets should be unquoted.

Last month, it was revealed that Mr Woodford’s suspended flagship equity income fund had breached limits after two of his investments, Benevolent AI and Industrial Heat, also delisted from the Guernsey stock exchange. At the end of July, he was told he had six months to correct the situation.

The delisting of Sabina Estates means it is estimated Mr Woodford’s illiquid holdings represent 18pc of his £3.2bn Equity Income Fund.

A spokesman for Woodford Investment Management said: “Following the inadvertent passive breach, action to bring the fund back into compliance is already under way.

“On May 3, we informed investors that the fund’s exposure to unquoted securities would be significantly reduced – including those listed on exchanges where there is currently little or no trading activity. The decision by Sabina to delist from [The International Stock Exchange]will have no impact in how the assets are managed within the fund.”