Woodford mulls Equity Income offshore launch

Woodford mulls Equity Income offshore launch

Woodford Investment Management is looking the possible launch of an offshore feeder version of its £8.7bn Woodford Equity Income fund.

A spokesperson for the organisation confirmed that an offshore version of the fund is indeed being considered by the firm but said that a final decision and any potential date for any launch has yet to be agreed.

In June this year, as reported, Woodford IM said that it was also looking to launch a second equity income fund later this year with a higher yield of 4.5%.

On offshore version of Woodford’s flagship fund would be sure to receive widespread attention from the international investment community, despite the fact that fund manager Neil Woodford has been suffering from a period of uncharacteristic underperformance in both his Equity Income fund and his Woodford Patient Capital Trust investment trust of late.

The popular star fund manager said that he has positioned his portfolios in both offerings to take advantage of investment opportunities that have arisen during the uncertain market conditions brought about by the surprise Brexit vote.

As reported, Investors in Neil Woodford’s Woodford Patient Capital Trust saw its net asset value drop by -10.8% to £717.89m with the share value falling by -16.7% for the period up to June 30.

In a statement released by the company last week announcing its half-yearly financial report for the period from 1 January up to June 30, 2016, Woodford, told investors that despite the fact that it has been a tough start to the year for financial markets, and for the Woodford Patient Capital Trust portfolio in particular, “considerable progress” has been made across much of the portfolio.

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