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Woodford listed fund hits record low on valuation cut

Published 23/08/2019, 09:54
Updated 23/08/2019, 09:54
© Reuters. FILE PHOTO: British fund manager Neil Woodford is seen in this handout image

© Reuters. FILE PHOTO: British fund manager Neil Woodford is seen in this handout image

(Reuters) - Shares in Woodford Capital Patient Trust (L:WPCT), the listed fund run by money manager Neil Woodford, hit a record low on Friday after the trust's administrator said it would cut the valuation of one of its biggest holdings.

Veteran money manager Woodford froze his flagship equity income fund on June 3 because it could not meet redemption requests, a move which has prompted outcry from lawmakers and investors, a probe by regulators and share price losses or outflows from his other two funds.

Link Fund Solutions said on Friday it would cut the valuation of WPCT's stake in IH Holdings, a unit of cold fusion technology firm Industrial Heat.

Link is also due on Friday to give an update on the suspended fund, which it has previously said will likely be closed until December.

IH Holdings was one of WPCT's biggest holdings at end-April, the last month for which data is available, making up more than 10% of the portfolio. IH Holdings delisted from the Guernsey stock exchange last month.

WPCT said the adjustment, which reflected a reassessment of the current progress of the IH Holdings business, would impact the trust's net asset value by about 3.4 pence per share. As at Aug. 21, WPCT's net asset value excluding income stood at 78.96 pence a share.

The trust's shares plunged to a record low of 38.10 pence per share before recovering to 41.15 pence by 0740 GMT, down 6.2% and at the bottom of the FTSE 250 midcap index (FTMC).

WPCT said last month it may replace Woodford as its investment manager.

Woodford's suspended fund also holds a stake in IH Holdings. Analysts and investors have questioned the valuation of the energy technology firm, along with several of Woodford's other unlisted or rarely traded bets.

Woodford Investment Management suffered a further blow on Friday after Eddie Stobart Logistics Plc (L:ESLE) announced the departure of Chief Executive Officer Alex Laffey and suspended shares from trading after it failed to publish its half-year results in time. Its shares fell 5%.

Woodford Investment Management is the largest shareholder in Eddie Stobart with a 23% stake, according to Refinitiv Eikon.

© Reuters. FILE PHOTO: British fund manager Neil Woodford is seen in this handout image

For a graphic on Woodford vs FTSE 250, click https://fingfx.thomsonreuters.com/gfx/mkt/12/5143/5100/Pasted%20Image.jpg

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