This morning sees the release of the maiden set of annual report and accounts for Woodford Patient Capital Trust plc to the year ending 31 December 2015.
You can download the full report and accounts (PDF 3MB), including the chairman’s statement and Neil Woodford’s review of the year but here’s a few key points:
- Range of investment opportunities better, deeper and richer than initially thought
- Portfolio now fully invested
- Trust’s net asset value fell 2.6% to 97.38p
- Ongoing charge 0.1%
- Board to propose a dividend of 0.16p per share
- Woodford investment team and network of experts expanded
The proposed dividend may come as a surprise to some investors but it is necessary for the Company to distribute excess income if it wishes to retain its status as an investment trust. The annual report details a change to the investment policy, which gives the investment team more flexibility over the proportion of the portfolio that is invested in mid and large companies, and should make the prospect of future dividends less likely. The new investment policy on the portfolio’s maturity status allocation is as follows:
- Between 15 and 30% invested in mid and large-capitalisation listed, mature companies
- Between 15 and 30% invested in early-growth companies
- Between 40 and 70% invested in early-stage companies
The report also includes an update on the consultation process about a potential further capital raising, which we announced in January. With the continuing uncertainty prevailing in markets, the board has decided that now is not an appropriate time to raise capital but will continue to monitor the situation. You can find the results of our private investor digital survey here.
Please also find below a short video update from Neil on the portfolio’s progress to date.