Since sept 31, which was the last valuation date for the nav, the 2 public holdings are not doing very well. Autolus is down 40% and ONT is down 13%. |
I think it's likely that specialist funds will be taking these chunks. It reminds me of the ill fated QPP (then watchstone group) , which was broken up and sold off over an extended period. As time went by 99% of the stock was held by funds - so nearly all retail investors bailed (I held on and bought more at cheap prices) I found my spreadsheet - copied below to give an idea of who buyers might be. This is somewhat dated though.
It's likely something like 13 to 15p will be returned over time, but retail punters won't have the patience. If any of the AI investments come off, it could be more.
If it gets down to a buy price under 9p i'll be topping up, and will hold it all to fruition.
WATCHSTONE: %:
08/06/2017 Beechpoint 17
01/05/2018 Sand Grove 11.25
15/04/2020 UBS 7.93
08/01/2020 polygon 29.237
24/11/2018 HSBC 12.685
23/12/2019 Credit Suisse 9.371
06/11/2018 Deustche Bank below 5
22/10/2019 m&g 6.33
22/10/2019 prudential sold 7.71
17/12/2019 Macquarie grp 5.32 |
19.7m share trade sold out today... some big institutions getting out asap rather than be tortuously repaid at TBA point.
I just hope someone is buying up these to take them private themselves and kick out Schroders and their fees. |
 From
CITYWIRE INVESTMENT TRUST INSIDER
By
Danielle Levy
The board of Schroders Capital Global Innovation (INOV), formerly the Woodford Patient Capital investment trust, has brought forward its continuation vote from May to February.
A general meeting, which looks certain to lead a wind-up after a very chequered history, has been set for 27 February. The board said moving the meeting to an earlier date would provide the trust with more time to ‘dispose of its assets in an orderly manner’ in the hope of maximising potential gains and the return of capital to shareholders.
Articles have been amended so the ‘continuation resolution’ has been replaced with a ‘discontinuation resolution’, which will be presented to shareholders at the meeting.
Tim Edwards, chair of the trust, reiterated the board’s view that a wind-down was in the best interests of shareholders. This followed a consultation with shareholders, including activist value investor City of London which has a 14% stake.
‘Since taking over the management of the portfolio in 2019, Schroders has stabilised the company and repositioned the portfolio so as to seek to give shareholders access to venture and growth companies globally,’ Edwards said.
‘However, recognising the challenges associated with the legacy assets, alongside current market conditions, the board has taken the decision that it is in shareholders’ interest to pursue the managed wind-down.’
In its last set of results for the third quarter of 2024, the trust recorded a 4% drop in net asset value (NAV). Its assets have more than halved since Schroders replaced Woodford Investment Management as fund manager five years ago.
Since launch in April 2015 when it raised a then record £800m with former investment star Neil Woodford, the company’s market value has plunged to £81m with the shares trailing 50% below NAV.
Shares that listed at 100p traded at 10.8p at yesterday’s close. |
so schroders have and will continue to make millions in fees while the holders continue to get shafted repeatedly... the board should be fired and made to pay back their salaries for gross incompetence .. if the trust had been wound down instead of being handed to schroders holders would have got north of 30p .. instead the assets were sold down and invested in even more illiquid assets.. go figure... lunacy |
Well, there we have it. The Death Knell. All we can do now is await the lych bell or corpse bell. I wish I had a real faith in the Undertakers. It's a case of faute de mieux, I suppose. It will be interesting to keep this thread open for any developments to be noticed. Eventually someone will write the obituary if any of us are still around.... |
So the board now recommend winding up this sorry saga. True to form the fact schroders will continue to be paid unchanged fees means little need or incentive for them to expedite this process. Ideally someone just makes an offer to buy this up at say 13p and manage the sales themselves than per that cost erosion happen |
The last RNS mentioned an update coming in January. It has been a tale of woe throughout so I would not be surprised if that timeline was wrong as well. Hopefully we can vote to close this down and get some funds back. Ideal situation would be larger buybacks funded from remaining cash to take advantage of huge discount to NAV. Worst case is they sell the Private assets in a bundle on the cheap so they can get this sorry story of their books. |
Any thoughts anybody on the continuation vote situation? |
Edit - 20p |
Press speculation indicates a winding up. The suggestion that shareholders might get 30p seems unlikely. That said, the better, larger holdings should go for nav or close to it. Even though no doubt some holdings will have to go at a discount, give the cash position the exit should be at least 30 to 60% higher than the current valuation. The managers should be buying back shares much more aggressively at this price. |
If the continuation vote carries, the managers should still not be permitted to make new investments. Excess cash should be returned to shareholders, with investments allowed only intothe most promising existing holdings when required. A fire sale helps no one, but letting these 'experts' roll the dice on more very high risk ventures is also madness. A middle ground is best. I hope large shareholders exert pressure in this direction. |
Surely there's a chance some PE will come in and try and take this out rather than see shareholders face a long wind up process - get it for say 14p a share still leaves (currently 6p a share of margin) and manage it down without the expense of Schroders running it and less time pressure too so likely better exit prices than in a wind down? |
The Board should take responsibility for this shambles... Schroders are doing a worse job than Woodford... By selling down holdings that were near profitability and re-investing in high risk PE companies they have doubled down on the bad eggs and sold the golden gooses... at the same time paying themselves millions in 'management' fees... |
The decision to sell ONT piecemeal, rather than negotiate a block sale was unforgivable.
Not only did they trash the ONT sp, they also trashed the INOV NAV.
The resulting icing on the cake is significantly less cash in the INOV bank account.
A kid could do better. |
What an incredible destruction of value. The selling out of most of what was the largest holding (ONT) at prices near the bottom pretty much sums it up. If the managers had any decency they would return the cash and cash equivalents (about 3p per share) as clearly they are incapable of making money. Otherwise it's a 'fingers crossed' long term play in the hope that some of their AI investments have huge returns. The fact that the shares (with cash stripped out) are trading at a 60% discount to NAV clearly indicates how much confidence the market has in the failed management. |
In 2025 there is a continuation vote for this trust. Would shareholders be likely to take the hit on a likely capital loss, or keep going in the hope of a return later? |
Reaction Engines is close to a £20m rescue deal - comprising shareholder loans and an equity injection
hxxps://news.sky.com/story/concorde-successor-reaction-engines-rescue-deal-close-to-take-off-13218863 |
topped up with a few at just over 10p. Price declining, meanwhile ONT is flying. Let's hope the managers didn't sell too much of our stake at the low prices. |
Surely there should be an NAV announcement at some point? The rate this is falling the management fees will be more than the market cap!!! Schroders should be ashamed at how badly they are running this into the ground... |
Artemis have also revised their Reaction Engines valuation downwards by a similar margin to Schroders...
Artemis Alpha Trust plc announces that it is today writing down its holding in Reaction Engines by 75%. This in addition to a write-down of 25% compared to the 30 April 2024 year-end valuation made on 19 July 2024.
Following these write downs, the position is now held at £1.2 million, compared to £6.4 million as at 30 April 2024.
Although the company has achieved significant progress in commercialising its innovative technology, recent revenue growth has been slower than anticipated. The company is currently pursuing an internally led fundraise which is likely to be at a discount to the last valuation.
Baillie Gifford are reportedly monitoring developments.
PwC have been lined up as administrators should talks with the SDF and other investors fail |
at least there is a continuation vote next year... probably best to wind up the trust and return the cash... |
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