Neil Woodford's Patient Capital Trust pays off as it invests three-quarters of IPO funds

Emma Haslett
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Woodford stepped down at Invesco in 2014 (Source: Getty)

Given his success at Invesco, the decision by star fund manager Neil Woodford launch a solo venture was always going to have a risk attached - but it looks like it paid off, after his new fund, Woodford Patient Capital Trust, posted results showing it had already invested more than three quarters of the £800m it raised when it listed earlier this year.

Read more: Woodford's new fund surpasses Invesco Perpetual Income in size

In half-year results posted today, the trust said it expected to be fully invested by the end of the year.

Investors have already showed their appreciation: share price is up 19.3 per cent since launch, compared with a 2.4 per cent fall of the FTSE All Share index. Meanwhile, at 101.86, net asset value (NAV) per share is up 5.1 per cent, Winterflood analysts said.

"Since April's launch, we have been actively building the portfolio and it is already taking shape," said Woodford.
"Initially, our activity was focused towards building exposure to the mid and large capitalisation businesses that account for about a quarter of the portfolio.
"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."
Analysts at Winterflood said the trust was a "natural extension" of the approach Woodford "honed over a number of
"[He] is in an enviable position as one of the UK’s most successful fund managers. It is through this position that this strategy is possible, both in terms of the capital that he has to deploy and the network that he has developed over many years."

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