View the article online at http://citywire.co.uk/wealth-manager/article/a723696
Invesco dumps £70m Capita stake as Woodford sell-off escalates
by Robert St George on Dec 10, 2013 at 14:31
The Neil Woodford sell-off continues as Invesco Perpetual sold a sizeable stake in Capita on 5 December.
According to an announcement on the London Stock Exchange this afternoon, Woodford sold a stake worth almost £70 million in Capita. Invesco still owns 21% of the outsourcing giant and Capita's share price stood at £9.98 at 2pm today, 1% shy of its level a week ago.
Earlier in the day, Wealth Manager revealed that Invesco has trimmed a number of its holdings as redemptions in its income franchise escalated following Woodford's resignation in October.
Invesco confirmed yesterday that it sold all of the 92 million shares held in the firm, which Woodford has owned for at least seven years. The sale on 5 December netted Invesco around £35 million, with Assura's share price at 11am standing at 38p, down 2.5% over the past week.
The fund house also revealed yesterday it has offloaded 1.3 million shares in Provident Financial, another of Woodford’s long-standing picks, for approximately £20 million. That disposal occurred on 5 December, and Provident Financial’s at 11am was 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 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 over the last week by 14.5% to sit on £7.84 at 11am today.
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 received redemptions worth more than £2 billion from Woodford’s funds over this period.
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%.
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop
More about this:
Look up the funds
Look up the shares
- Assura Group Ltd (AGRP.L)
- Provident Financial PLC (PFG.L)
- Drax Group PLC (DRX.L)
- Capita PLC (CPI.L)
- Assura Group Ltd
Look up the fund managers
More from us
- Healthy profit for medical fund
- Woodford's income funds see £500m more outflows in October
- The smaller companies shaken by the Woodford tremors
- Woodford exit sparks Drax share price fall
- Outflows from Woodford funds hit £2 billion
On the road
on Jul 24, 2014 at 10:59