Market Report: Neil Woodford issues another four million shares in Woodford Patient Capital Trust


Jamie Nimmo
Wednesday 12 August 2015 01:16 BST

Investors cannot get enough of Neil Woodford’s latest venture.

So much so that the star fund manager has issued another four million shares in the Woodford Patient Capital Trust at 115.7p each to satisfy demand, just four months on from its IPO.

The trust, which invests in biotech and pharmaceutical firms, fell 3.4p to 115.9p as it warned earlier in the day it would be issuing more stock to hungry investors.

Three-quarters of the £800m raised in April has already been invested, its half-year report revealed.

The inclusion in the FTSE 250 played a major part in the strong performance – its share price is trading at an 11.4 per cent premium to its net asset value – as it benefited from being included in index tracker funds.

Mr Woodford said most of the success has come from early-stage companies, with heavyweights GlaxoSmithKline and AstraZeneca disappointing.

He said: “We are pleased with the shape of the portfolio and by the positive, albeit early, net asset value progression.

“More importantly, we are pleased with the operational progress being made by our investee companies and very excited by the long-term potential that they collectively represent.”

Among Mr Woodford’s top 10 holdings are Circassia, up 6p at 317.75p, and Allied Minds, up 15.7p to 461p, both of which have valuations approaching £1bn.

Traders betting the Greek bailout deal would propel UK stocks higher were left cursing China, whose devaluation of the Renminbi – and more fears about its slowing economy – put pressure on global stock markets.

A heavy fall on Wall Street dragged the FTSE 100 down 71.68 points to 6,664.54.

Mining groups were hit hardest by the latest chapter in the Chinese growth slowdown story, with Glencore tumbling 14.95p to a new all-time low of 191p, and BHP Billiton down 60.5p to 1,148.5p.

Gloo Networks made a solid start to life on Aim as it shares rose 4.5p on debut to 124.5p. The shell company is sizing up assets in the media sector worth up to £1bn.

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