Schroder & WPCT

[monabri]

https://www.londonstockexchange.com/exc ... 78230.html

"The Board of Woodford Patient Capital Trust plc (the "Company") is pleased to announce that it has agreed heads of terms to appoint Schroder Investment Management Limited ("Schroders") as the Company's portfolio manager. Shortly following the appointment, which is expected by the end of 2019, the Company will be renamed Schroder UK Public Private Trust plc."


( checks calendar...has April 1 come round early?)

[Alaric]

Shortly following the appointment, which is expected by the end of 2019, the Company will be renamed Schroder UK Public Private Trust plc."

Regarding fees

There is no performance fee payable until 31 December 2022, at which point Schroders will be eligible to a fee of 15% of any excess returns above a NAV per share of 77p (the latest reported NAV per share is 63.23p as at 22 October 2019). Thereafter, a performance fee of 15% of any performance above a hurdle of 10% of net assets each year will be payable, subject to a high watermark.

Given the history of the fund,won't a lot of investors have come in at a price of 100p or a bit more? An NAV of 77p if mirrored in the share price still translates into a loss.

[Dod101]

Not sure of the reference to 1 April. (From Schroders point of view maybe?) Schroder is a well respected and successful manager, probably just what Patient Capital needs. Re fees, Schroder will get !% on the assets after the first three months of management, (presumably whilst they reposition the portfolio) and then a performance fee kicks in at the end of 2022.

As a shareholder in Schroder I am quite pleased about that although PC is small beer and it will not have much effect on Schroder's profits. I think the 77p threshold probably recognises that that may be written down when Schroder gets their feet under the table.

Dod

[swill453]

Given the history of the fund,won't a lot of investors have come in at a price of 100p or a bit more? An NAV of 77p if mirrored in the share price still translates into a loss.

That money's gone, Woodford flushed it down the toilet. It's more than a 100% improvement on yesterday's share price, holders will probably be glad of that.

Scott.

[Bouleversee]

Up 25.27% today so, having paid 104p, my loss is reduced to 63.48%. I can't say I feel like opening the champers yet. Are things likely to improve further or go the other way. I see they are already off today's high. Absolutely no idea what to do now.

[Alaric]

Are things likely to improve further or go the other way.

That's likely to depend on what all the unquoted stuff is really worth, and what the new Schroder team decide to do with it.

[doug2500]

FWIW I've decided to tough it out for now.

While it's anyone's guess what the true NAV is I'm guessing it's somewhere in between the price and published NAV.

Thank goodness I was scaled back at IPO

[peka]

"it's anyone's guess what the true NAV is".

Well, there's no guesswork needed for the true NAV of WCPT's holding in Industrial Heat - it's exactly zero.

[Bouleversee]

Was Industrial Heat always in WPCT or is it one of the no-hopers shunted over from the income fund?

[Alaric]

Was Industrial Heat always in WPCT or is it one of the no-hopers shunted over from the income fund?

I think it's both.

A news item from a year ago.

https://citywire.co.uk/investment-trust ... t/a1157456

[Bouleversee]

Thanks. I'm afraid I haven't been watching all the holdings in the trust, having bought into it to avoid having to do so, on the assumption that NW could be trusted to save me the time and trouble and had much better judgement than I have.

[richfool]

Thanks. I'm afraid I haven't been watching all the holdings in the trust, having bought into it to avoid having to do so, on the assumption that NW could be trusted to save me the time and trouble and had much better judgement than I have.

Yes, investors delegated the management of their investments to Woodford and were paying him to do a prudent job, whereas instead, in effect, he 's been taking their funds down to the local bookies for a spot of backing/indulging his idiosyncrasies. He certainly wasn't sticking to his brief or his knitting.

[monabri]

Was Industrial Heat always in WPCT or is it one of the no-hopers shunted over from the income fund?

It was there in 2015 at 1.88% in position 19 of the holdings.

https://woodfordfunds.com/funds/wpct/im ... documents/

In the Dec 18 Annual Report, page 9 I see the text

"We funded Industrial Heat in 2015 to engage credible world-leading institutions to rigorously assess the progress of
its technologies"

The Dec 2018 report indicates several holdings in Industrial Heat, increasing to 4 holdings/ tranches (?) representing ~10% by value in the WPCT pf.

[Bouleversee]

Thanks, Mon.

""We funded Industrial Heat in 2015 to engage credible world-leading institutions to rigorously assess the progress of
its technologies".

I need a translation. What on earth does that mean and what was he saying about this company at the point when he was kicked out?

[PinkDalek]

The Dec 2018 report indicates several holdings in Industrial Heat, increasing to 4 holdings/ tranches (?) representing ~10% by value in the WPCT pf.

The June 2019 interims wrote down both Benevolent AI and Industrial Heat by £46m and £32m respectively and stated All adjustments have now been reflected in the 26 September NAV as per https://static.woodfordfunds.net/prd/2019/09/WPCT_HY19.pdf.

I think the table of Aggregate Holdings at 30 June 2019 was before those adjustments but haven't delved further.

I wouldn't be at all surprised if the latest Net Asset Value at 63.47p https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/WPCT/14281241.html reflects further write downs of either or both of those holdings (and others previously discussed in various topics at TLF). The NAV at 25 September 2019 having been 65.00p.

[gbjbaanb]

Thanks, Mon.

""We funded Industrial Heat in 2015 to engage credible world-leading institutions to rigorously assess the progress of
its technologies".

I need a translation. What on earth does that mean and what was he saying about this company at the point when he was kicked out?

It means "I funded this company in the hope that others would think I knew what I was doing and buy into it as well making the price rise"

[jonesa1]

It means "I funded this company in the hope that others would think I knew what I was doing and buy into it as well making the price rise"

It also means "I don't really have the faintest clue about science-y stuff"

[Bouleversee]

What exactly is a public private trust? Sounds like a contradiction in terms.

[Dod101]

What exactly is a public private trust? Sounds like a contradiction in terms.

I agree it seems a very strange name for any IT. Maybe they are trying to convey that whilst it is a publicly quoted IT, it is investing primarily in unquoted, ie private, companies.

You would think that they could have come up with something better though.

Dod

[barchid]

Lipstick on a pig I.T. springs to mind....