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WPCT Woodford Patient Capital Trust Plc

33.60
0.00 (0.00%)
13 Jun 2024 - Closed
Delayed by 15 minutes
Woodford Patient Capital Investors - WPCT

Woodford Patient Capital Investors - WPCT

Share Name Share Symbol Market Stock Type
Woodford Patient Capital Trust Plc WPCT London Ordinary Share
  Price Change Price Change % Share Price Last Trade
0.00 0.00% 33.60 01:00:00
Open Price Low Price High Price Close Price Previous Close
33.60 33.60
more quote information »

Top Investor Posts

Top Posts
Posted at 15/11/2019 13:31 by daffyjones
Trapped investors in the £3 billion Woodford Equity Income fund are forecast to lose a third of their remaining investment, according to modelling of the wind-up process commissioned by Link.

The modelling outlines a base case forecast of 32.5% losses as the fund is liquidated. Under the worst-case scenario, the fund's value would fall by 42.6%.

In a presentation for Link prepared by Woodford in October in a bid to retain the mandate, it estimated worst-case losses of only 9.3%.

This estimate did not however account for the likely impact of the large scale withdrawals expected. Woodford Investment Management was anticipating the fund would shrink to around £750 million had it reopened. The Woodford presentation also illustrated the portfolio BlackRock and PJT Park Hill inherited from Woodford. Around 23% of the portfolio was held in the hardest-to-trade stocks, estimated as taking between 181 and 365 days or more to offload, down from 32% at the time of suspension.

Link's forecast assumes BlackRock is only able to sell a small number of the fund's largest FTSE 100 stocks at the market price.

Across the vast bulk of the rest of the portfolio, BlackRock and Park Hill will be forced to accept a discounted price as they offload the fund's stocks, according to the modelling. This would apply even to the fund's large holdings in house builders, which account for 17.8% of the fund.

The fund's wind-up is set to add to the mounting losses already suffered by investors trapped in the fund. Since the fund's launch in June 2014 to the announcement of its wind-up last month, investors have lost 18%, while the FTSE All-Share has risen 33%. In the last two years the fund is down 37%.
Posted at 13/11/2019 11:03 by jonwig
The administrator tasked with deciding the fate of Neil Woodford’s last open-ended fund has drawn up a shortlist of potential managers to take it over.

Link Fund Solutions, which Mr Woodford enlisted as an authorised corporate director to his business, suspended dealing in the £249m Income Focus fund four weeks ago, in response to the decision by the former star stockpicker to close his business.

In a letter to the fund’s investors on Wednesday, Link said it had held initial meetings with a shortlist of managers to establish whether they would be able to take it on or merge it with another of their products.

Link said finding a new manager for the fund was the best option for its investors, but it added it could still wind it up.

“This will result in the fund’s assets being sold in a way that seeks to best protect value and the proceeds of those sales will then be distributed to investors,” Link said. “In the event that we determine that the fund is to be wound up we will write to you setting out your options.”

In the four weeks since the fund was suspended it has lost 0.3 per cent, while its benchmark, the FTSE All Share, returned 2.1 per cent.

Income Focus has shrunk by half since Mr Woodford’s flagship fund, Equity Income, was suspended by Link in June. Most of the decline was a result of Hargreaves Lansdown, the fund supermarket that promoted Mr Woodford’s funds until the first suspension, withdrawing a large mandate.
Posted at 02/11/2019 11:02 by jonwig
The ShareSoc blog has a comment on the proposed legal action:

With the demise of the Neil Woodford’s empire and the winding up of the Woodford Equity Income Fund, investors are looking for whom to blame – other than themselves of course for investing in his funds. One target is Hargreaves Lansdown (HL.) and other fund platforms who had it on their recommended or “best buy” lists, including long after the fund’s problems were apparent. Now lawyers are only too glad to help in such circumstances and at least two firms have suggested they can assist.

One is Slater & Gordon. They say they are investigating possible claims against HL. and that “We’re concerned to establish if there was any actionable wrongdoing or conflict of interest by Hargreaves Lansdown in continuing to include Woodford funds on their ‘Best Buy’ Lists if it had concerns as to their underlying investments. We’ll also be looking at the price achieved when buying and selling instruments, such as ordinary shares, on the Hargraves Lansdown platform and whether or not this represents Best Execution”. You can register your interest here:

Another legal firm looking at such a claim is Leigh Day who say they already have 500 investors interested in pursuing a case. See for more information.

Having been involved in a number of similar legal cases in the past, my advice is that there is no harm in registering an interest but do not pay money up front and certainly not until the basis of any legal claim is clear. In addition bear in find that it would be very expensive to pursue such a claim and lawyers may be willing to do so simply in anticipation of high fees when there is no certainty of winning a case. How is the case to be financed is one question to ask? Funding such cases by private investors alone (the majority of HL. clients) is likely to be difficult so “litigation funding” is likely to be required which can be expensive and erode likely returns. Insurance to cover the risk of losing the case is also needed and expensive.
If they can establish that "Best Execution" on share trading wasn't sought, that would be a real can of worms
Posted at 30/10/2019 06:49 by jonwig
Australian law firm Slater & Gordon is preparing legal action against investment platform Hargreaves Lansdown over its support for disgraced fund manager Neil Woodford.

In a tweet sent late on Tuesday afternoon, the company said it was looking into the merits of potential claims on behalf of investors who had poured money into Mr Woodford’s funds and asked them to follow a link to register their interest.
..............

Around 291,000 savers used Hargreaves to pump their money into Equity Income. The platform plugged Mr Woodford's funds for years on its list of best buys, even as performance began to slip.

A statement on Slaters' website said: “Our group litigation team is investigating possible claims for investors who invested in Woodford funds through Hargreaves Lansdown.
..............

Fellow law firm Leigh Day is also digging into possible compensation claims from Woodford investors.

A statement on Leigh Day’s website said: “We are investigating whether Hargreaves Lansdown misrepresented the health of the Woodford Equity Income Fund whilst continuing to recommend it, resulting in significant losses for their clients.”

Hargreaves Lansdown declined to comment.
Posted at 19/10/2019 17:44 by topvest
HL have not covered themselves in glory, that’s for sure. They are not responsible for investor losses though. Investors are responsible. They made poor decisions and have to take a loss. I’ve lost money from time to time...you win some, you lose some...but investors are to blame for their own misjudgement. It’s been pretty obvious to anyone that Woodford was a busted flush for at least 3 years. You should not be buying HL tips, but doing your own research.
Posted at 15/10/2019 14:36 by tim 3
I think you have to at least ask the question did he mislead investors.

While there is not much you can do if a fund manager gets it wrong and underperforms thats the risk you take.

However when Woodford said in relation to prospective buyers of his Equity income fund and I quote from his website, "protecting capital is our key priority" with actions like buying so many of what are clearly high risk companies and getting round rules using the Guernsey exchange can he honestly say thats putting protecting capital as the key priority?

From his website.

Our original investment proposition
The original Woodford fund, focused on delivering attractive long-term returns for investors through investment in undervalued companies that can deliver sustainable dividend growth
Investors expect a positive return and that is what we aim to deliver over the long term – protecting capital is our key priority
We aim to offer investors capital growth and a growing income stream, paid quarterly
Posted at 15/10/2019 12:24 by jonwig
FT's Markets Live hasn't much on Woodford, since the FT is busy pushing its fraud exposure of Wirecard (German, DAX30) - a much bigger fish! However:

Here's Stifel's Iain Scouller

There was always a high likelihood that investors in the Woodford Equity Income Fund (WEIF) would not wish to stay in the fund once it re-opened, and we think that today’s news of a wind up and return of cash to investors gives investors clarity now, rather than having to wait until the end of the year to see the outcome. The Woodford Patient Capital (WPCT) board has put out a brief holding statement reiterating they are undertaking a review of the management arrangements and will make a further announcement in due course.

With Woodford Investment Management effectively in wind-down, we think the board of WPCT does now need to appoint a new manager as a matter of necessity, given the trust does not pay an annual management fee (only a performance fee) and Woodford IM will have little revenue to pay its expenses now that there is no fee income from WEIF. We think that any new manager of WPCT will expect a conventional annual management fee to be paid going forward.

We also think the wind-up of WEIF increases the likelihood that the board of WPCT will decide to put the trust into run-off, with investments realised gradually over a number of years and cash returned to investors once the bank debt (£111m at 26/09/19) is repaid. We commented on the bank debt issue in a note last Thursday (link here).

WPCT opened down 3p in trading this morning to an all time low of 35p - in the short term, we think the shares may see some bounce, given the increased likelihood that a new manager will be appointed to WPCT and a run-off of the trust appears more likely. However, we would expect the price to continue to be volatile, given the question marks around the realisable value of the portfolio, especially the unquoteds and issues around WPCT’s need to reduce leverage

One of the biggest factors in corporate failures has been excessive leverage, so it is always a factor to monitor closely. This trust has been running with leverage of 15% to 20% of NAV in recent years. In normal circumstances this should be quite manageable, however Woodford Patient Capital (WPCT) is clearly not in normal times and we think a close eye needs to be kept on leverage, given the debt facility expires in January 2020, unless renewed.

We assume that by 31/12/19, there is a sale of a number of unquoteds from WPCT, resulting in a cash inflow which can be used to pay down debt. The manager says there are negotiations underway on a number of company-specific transactions, together with interest from parties looking at acquiring portfolios of assets. We also assume that a new bank facility will be negotiated, although at more onerous terms than the current LIBOR+1.5% cost. As 2019 draws to a close, if neither of these developments materialise, this would be a cause for significant concern.

There are clearly a number of scenarios for potential outcomes for WPCT over the next year. It continues to be a high risk investment in our view given leverage, management company issues and the illiquid portfolio. Given the current inability to make new investments and difficulties in making follow-on investments due to the trust being close to its leverage upper limit (19% of NAV vs 20% maximum at time of investment), we think the board should seriously consider adopting a 'run-off' strategy where investments are gradually realised over a number of years and cash is returned to investors, once the bank debt is repaid. There is also a question over the viability of Woodford Investment Management and the board have already said they are reviewing management arrangements. If a new manager is appointed, we think it would be helpful for portfolio companies if some of the existing management team transfer over to any new manager, in order to maintain continuity and knowledge of portfolio investments.
Posted at 30/9/2019 07:00 by jonwig
Telegraph:

The biggest backer and supervisor of Neil Woodford is scrambling to be ready for a “worst-case scenario” when angry investors finally obtain access to cash trapped in his flagship fund.

Fund supermarket Hargreaves Lansdown, which has hundreds of thousands of customers with a total of £1.6bn in his equity income fund, is talking to Link Fund Solutions about how to cope with demand when the shutters are lifted later this year.

In the “worst-case scenario” in which redemptions could not be met, the fund might have to be wound up and its assets offloaded in a fire sale. Customers could face losses as a result.

One insider said it would be “silly” of Link and Hargreaves not to prepare for an exodus. “This is literally their job. They are a regulated entity and it’s in their interest to get this right,” the source said of Link.

Interactive Investor, the second-largest investment platform, said it had not been contacted by Link. Investors were told by Link last week it would not allow trading without prior warning and that the suspension remained “in the interests of all investors”.

One investment expert said Link had to ensure the fund could afford to pay back customers wanting to pull their money before lifting the suspension.

The Treasury select committee said the recent suspension of parliament had prevented members from asking Link, Woodford Investment Management or Hargreaves Lansdown to provide further evidence.

Mr Woodford, once called Britain’s answer to Warren Buffet, has dumped more than £1bn of assets in a bid to improve the fund’s liquidity, after blocking investors’ access in early June.

Investors are unlikely to retrieve their trapped cash until early December, although the suspension remains subject to a rolling 28-day review.

A spokesman for Hargreaves Lansdown said: “We, alongside other platforms and administrators, are working with Link to ensure that when the Woodford Equity Income fund suspension is lifted client demand can be met in an orderly manner.”

Link declined to comment.
Posted at 26/9/2019 14:15 by liquidkid
How very British. Britain's Sovereign Venture Capital fund.
(Not authorised or regulated by the PRA or FCA)

Timeline:
24 September 2012 Business Secretary Vince Cable announces first steps in creating a Government-backed business bank (BBB not a bank), including new Government funding of £1 billion, supporting up to £10 billion

April 2015 Woodford Patient Capital Trust (WPCT) launched

The Patient Capital Review was announced by the Prime Minister in November 2016.
the industry panel were:
Neil Woodford, David Norwood etc

21 June 2017
Atom bank & British Business Bank Investments Ltd (BBBIL), the commercial arm of the British Business Bank, £30m Tier 2 capital facility to support Atom’s growth.
(follows BBBIL Tier 2 investment in another challenger Shawbrook Bank)

Autumn Budget 2017: Philip Hammond
A new fund in the British Business Bank (ironically -BBB), seeded with £2.5 billion of public money.

1 October 2018
British Business Bank plc has appointed Catherine Lewis La Torre as CEO of the Bank’s patient capital activities delivered through its
commercial arm a separate subsidiary: British Patient Capital (BCP Partners)Seeds the first wave of investment of this Government Managed Funds programme with £500 million.

Autumn Budget 29 October 2018
Patient Capital and Defined Contribution Pension Schemes feasibility study launched

25 September 2019
UK’s DC auto-enrolment pension schemes are missing out on higher returns not investing in the UK’s fastest growing and most innovative companies

Notes:
The Patient Capital Review
This proposal targets the lack of capital availability, particularly beyond the current EIS and VCT threshold.

2.4. The Panel’s perception is that there is plenty of interest from retail investors in patient capital-type investments. However, the
regulatory treatment for retail capital is even more
tightly constrained than for institutional capital. As non-sophisticated investors, regulation is focused on protecting investors’ capital, and ensuring any investments made are suitably liquid. This restricts retail investors from making patient-capital-type investments, which are
typically highly illiquid. Retail investors’ exposure to investing in scale-ups and science based start-ups is therefore mostly limited to VCTs and EIS, and a small number of specialist retail offerings such as Woodford Patient Capital Trust
2.5. While retaining regulatory protection for retail investors, the Panel recommends that greater opportunity should be given to allow them to share in wealth generation by UK scale-up and science-based start-up businesses.

Patient Capital (BPC) Investments:
hxxps://www.britishpatientcapital.co.uk/portfolio/
examples:
Nutmeg, Revolut, ZOPA



1 of/...
Posted at 30/8/2019 06:52 by jonwig
From IC, Woody has been reading the Mushroom Growers' Manual:

LF Woodford Equity Income (GB00BLRZQB71) has stopped publishing its 10 largest holdings and will not disclose these again until it resumes trading, expected to be in December. This sets it apart from the vast majority of other funds available to UK private investors, nearly all of which disclose their 10 largest holdings. At a time when the fund's manager, Neil Woodford, is selling holdings to reposition this fund, such disclosures can leave it vulnerable to other investors looking to buy its holdings cheaply or bet on their prices falling.

"During the period of the suspension and subsequent repositioning of its portfolio, Woodford Investment Management will no longer publish details of the holdings in [LF Woodford Equity Income Fund],” said Link Fund Solutions, the fund's authorised corporate director, in an update on 23 August. “The interim report and accounts of the fund to 30 June 2019 will include a list of holdings as at that date. It is firmly believed that this is in the best interests of investors."

Zero effect on Woody-tracking hedge funds who can view earlier lists and track RNSs.

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