View the article online at http://citywire.co.uk/money/article/a723696
Invesco begins liquidating Woodford small caps as outflows mount
(Update) Invesco Perpetual has sold shares in Capita and dumped its entire stake in one of Neil Woodford’s favoured smaller companies.
The Neil Woodford sell-off continues with Invesco Perpetual disclosing the sale of a slug of Capita shares on the same day it dumped other stocks to raise money for investors exiting Neil Woodford's funds.
According to an announcement on the London Stock Exchange this afternoon, Invesco sold nearly £70 million of shares in the outsourcing giant on 5 December. It still owns 21% of the company. The shares closed 6p lower at £9.99, 1% down on their level a week ago.
Yesterday Invesco revealed it had trimmed other holdings and had sold its entire stake in one of Neil Woodford’s favoured smaller companies on the same date.
This included the disposal of all 92 million shares it held in Assura Group (AGRP.L), an investor in medical property that Woodford (pictured) has owned for at least seven years. The sale netted Invesco around £35 million; Assura's share price today is 38p, down 2.5% over the past week.
The group also offloaded 1.3 million shares in Provident Financial (PFG.L), another of Woodford’s long-standing picks, for approximately £20 million. That disposal occurred on 5 December, and Provident Financial’s share price today is 1.9% ahead over the past week at £16.26. Invesco has retained a 24% stake in the credit provider.
Meanwhile another £22 million has been taken from Drax (DRX.L) after Woodford sold 2.8 million shares in the power producer on 5 December. Invesco still owns 29% of Drax, whose share price has surged by 14.5% to £7.84 over the past week.
Woodford’s flagship Income and High Income funds have suffered significant outflows since his departure was announced in October, shedding more than £500 million in that month alone. The Financial Times has since estimated that Invesco has suffered redemptions worth more than £2 billion from Woodford's funds over this period. He is due to leave the group to set up on his own in April.
On the same day that Invesco sold its Assura stock, Artemis snapped up 43.6 million shares in the firm, taking its ownership of Assura from 8.8% to 17.1%.
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by Gavin Lumsden on Oct 28, 2016 at 16:26