The LF Woodford Equity Income Fund (WEIF) has sold some of the portfolio’s individual unquoted stocks to Woodford Patient Capital Trust (WPCT) in exchange for shares in WPCT. This step signals the start of a strategy to switch the fund’s unquoted exposure from individual unquoted holdings to shares in WPCT.
WEIF acquired the new WPCT shares primarily for a “non-cash consideration” by transferring five unquoted holdings to the value of GBP72.9 million to WPCT and subscribing for the remaining GBP6 million in cash. This acquisition of assets by WPCT allows it to increase its position in companies that the Board views as the ‘the next wave of disruptors’. It also brings onboard a new institutional long-term shareholder in WEIF.
Craig Newman, Chief Executive, Woodford Investment Management, says: “The Woodford Equity Income Fund has always aimed to deliver a growing income stream and a total return by investing predominantly in listed stocks, with some exposure to unquoted holdings to generate excess returns from disruptive technologies. These objectives remain firmly intact.”
“Neil is as passionate on the unquoted asset class as ever but having listened to feedback from clients we believe that moving the exposure to the asset class via a collective fund rather than individual unquoted stocks makes sense – both operationally and from an investor view.”
