Neil Woodford fund breaches rules after Guernsey delistings
Embattled fund manager Neil Woodford has breached fund restrictions after two of his major investments delisted from the Guernsey stock exchange.
Woodford has been battling to reduce his Equity Income fund’s investment in illiquid securities after it was suspended following a spike in investor redemption requests.
Read more: Neil Woodford’s flagship fund to stay frozen until December
Benevolent AI and Industrial Heat cancelled their listings yesterday according to filings submitted to The International Stock Exchange (Tise).
Following the delistings the fund has breached a 10 per cent limit on exposure to unquoted securities for the third time. Woodford has six months to bring the fund back within restrictions.
Benevolent AI is the fund’s fourth largest holding, according to portfolio data for 30 June.
The fund previously breached the limit in February and March last year.
A spokesperson for Woodford said work was already underway to bring the fund back into compliance following the latest inadvertent passive breach.
Read more: Woodford defends share sell off as he faces removal from namesake fund
“On 3 May we informed investors that the fund’s exposure to unquoted securities would be significantly reduced – including those listed on exchanges were there is currently little or no trading activity,” the spokesperson said.
“The decision by Benevolent AI and Industrial Heat to delist from Tise will have no impact in how the assets are managed within the fund.”