Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Invesco dumps £70m Capita stake as Woodford sell-off escalates

Invesco dumps £70m Capita stake as Woodford sell-off escalates

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.

The disposals include the entire stake in one of Neil Woodford’s favoured smaller companies Assura Group, an investor in medical property.

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%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter