/ WOODFORD PATIENT CAPITAL /
D THINGS
E TO THOSE
WAIT
trustnetdirect.com
20%
15%
10%
5%
0%
-5%
IT UK All Companies (-2.43%)
-10%
Woodford - Patient Capital Trust (-7.25%)
-15%
Apr
Mar
Feb
Jan 16
Dec
Nov
Oct
Sep
Aug
-20%
Jul
“Clearly, we would prefer to be
reporting on a period of positive
progress for the portfolio in NAV
terms, but it is still very early days
for this long-term strategy and
performance should be viewed in
the context of the overall market
environment since launch,”
Woodford said in his manager
statement which accompanied the
annual results.
“The performance of the trust
should not correlate closely to
that of the broader UK stock
market in the long term, but the
quoted element of the portfolio
and, in particular, our large cap
positions are exposed to the slings
and arrows of market sentiment
which, in the period under review,
turned increasingly negative.”
PERFORMANCE OF TRUST VS SECTOR SINCE LAUNCH
Jun
EARLY DAYS
“In particular,
our large cap
positions
are exposed
to the slings
and arrows
of market
sentiment”
May 15
to a discount at the start of the year,
before climbing back to its current
1.8 per cent premium. On a share
price basis, since launch to 1 April,
data from FE shows the trust is down
7.25 per cent.
In a further “blow” to
Woodford, the board of the
trust decided against raising
any more capital for the time
being, after citing the current
level of uncertainty in global
markets. This was despite the
fact the manager had identified a
number of potential investment
opportunities.
Woodford remains upbeat,
however, with all the analysts
who marked his one-year report
card all pointing out the clue is
in the name of the trust – namely,
being patient. This is because
approximately three-quarters of
the portfolio consists of small
quoted and unquoted early-stage
growth companies, which makes
judging him on just one year of
performance a fairly meaningless
exercise.
The knives have been
out for Woodford
Patient Capital after
an underwhelming
first year, but Adam
Lewis says the critics
should reacquaint
themselves with the
name of the trust
Source: FE Analytics
3