Woodford trust changes strategy, drops capital raising (updated)

Northwest Biotherapeutics

22/03/2016 11:23

(Adds detail on fees, investments, changes lead) 
    LONDON, March 22 (Reuters) - An investment trust launched 
less than a year ago by star fund manager Neil Woodford is 
increasing its focus on early-stage companies and abandoning 
near-term plans to raise more capital, it said on Tuesday, after 
its net asset value fell nearly 3 percent. 
    Woodford left Invesco Perpetual in 2014 after more than 25 
years to launch his own investment firm. 
    The Woodford Patient Capital Trust  WPCT.L , one of two 
funds managed by Woodford Investment Management, listed in April 
2015 after raising 800 million pounds ($1.14 billion), the 
largest UK investment trust launch for more than 20 years. 
    It raised a further 30 million pounds last year and said in 
January 2016 it would raise additional capital. 
    "With the continuing uncertainty prevailing in markets, the 
board has decided that now is not an appropriate time to raise 
capital," the trust said in a blog accompanying its annual 
report and accounts for the year ending Dec. 31, 2015. 
    The trust's net asset value had fallen to 97.38 pence per 
share at the end of December, below the issue price of 100 
pence. 
    The trust has invested heavily in healthcare stocks, 
including Northwest Biotherapeutics  NWBO.O , which it said was 
the largest negative contributor to performance. 
    Woodford Investment Management has said it will not receive 
a fee for managing the trust until it delivers cumulative annual 
returns of more than 10 percent.   
    The trust said it would pay a dividend of 0.16 pence per 
share but added the change in investment strategy "should make 
the prospect of future dividends less likely". 
    The strategy change would allow up to 70 percent investment 
in early stage companies, which may not be listed, from around 
50 percent previously. 
    The quota of investment in mid and large-cap stocks and in 
early-growth companies, which are usually listed, could drop to 
as low as 15 percent each, compared with a target of around 25 
percent previously.  
    ($1 = 0.7001 pounds) 
 
 (Reporting by Carolyn Cohn; Editing by Mark Potter) 
 ((carolyn.cohn@thomsonreuters.com; 44 207 542 6320; Reuters 
Messaging: carolyn.cohn.thomsonreuters.com@reuters.net)) 
 
Keywords: WOODFORD PATIENT STRATEGY/