Woodford Suspension Extension Update August

Suspension extension continues…

Woodford have said that they will continue to make progress focusing the fund’s portfolio towards the few areas of the market which, they believe, continue to offer valuation appeal and to the economic sectors with enough internal momentum to withstand the growing global headwinds.

The previous update has shown that this strategy has not delivered the returns that had been anticipated over the past couple of years. The suspension did have an immediate impact on performance in the short term with the fund underperforming its benchmark significantly during the first 28-day period.

The situation improved during the second 28-day period in July, with the fund outperforming, albeit marginally. However, over the latest period of suspension the fund has underperformed its benchmark – which can be primarily attributed to the share price decline of two of the fund’s larger holdings, Burford Capital and Industrial Heat.

Neil continues to alter the portfolio while still reflecting the same investment strategy. The strategy that is founded on a belief that the global economic environment is not as robust as equity markets are implying. 

Find out more here.