(Alliance News) - Woodford Patient Capital Trust said Monday that recent months have been "the most challenging period for the company since it floated in 2015".
In June, the trust's fund manager, Neil Woodford, took the decision to suspend withdrawals from his separate open-ended equity income fund due to "an increased level of redemptions", with the that fund needing time to "reposition" its portfolio invested in unquoted and less liquid stocks into more liquid investments.
On Monday Woodford Patient Capital said net asset value on June 30, was GBP654.2 million, down 19% from GBP807.2 million in December.
In addition, the trust's NAV per share on June 30, was 72.00 pence, down 26% from 97.61p on December 31.
"Shareholders have endured an extremely disappointing six-month period, for which I am very sorry. While shareholders can be forgiven for thinking there are no positives, I continue to believe that the majority of the businesses we have invested in are making good progress, in line with our pre-agreed milestones.
"This is not to gloss over the setbacks which the portfolio has suffered since WPCT was launched in 2015, nor the significant downward pressure both the NAV and share price have endured since the suspension of WEIF on 3 June 2019," Neil Woodford said.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.1% at 7,435.21
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Hang Seng: up 0.6% at 26,116.17
Nikkei 225: closed down 0.6% at 21,755.84
DJIA: closed down 70.87 points, 0.3%, at 26,820.25
S&P 500: closed down 0.5% at 2,961.79
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GBP: soft at USD1.2297 (USD1.2310)
EUR: soft at USD1.0937 (USD1.0954)
Gold: down at USD1,488.40 per ounce (USD1,491.45)
Oil (Brent): down at USD61.70 a barrel (USD62.36)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
1100 CEST EU unemployment
0930 BST UK second-quarter GDP
0930 BST UK balance of payments
0930 BST UK business investment revised results
0930 BST UK money & credit
0930 BST UK monetary & financial statistics
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Opposition party leaders will meet for further talks in Westminster on Monday in a bid to ensure UK Prime Minister Boris Johnson cannot push through a no-deal Brexit against the will of Parliament. The leaders are expected to discuss a plan by Liberal Democrat leader Jo Swinson to force the prime minister to go to Brussels to seek another Brexit delay as early as this weekend. Parliament has already passed the so-called Benn Act requiring him to request a further extension to the Article 50 withdrawal process if he cannot get a new agreement by October 19. But some on the opposition side fear that could leave too little time to take action through the courts if Johnson tries to circumvent the legislation and push through a no-deal break.
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An "infrastructure revolution" will see new investment in roads, buses and broadband under plans set out by Sajid Javid. The UK chancellor of the exchequer set out the first projects that will be included in the promised road investment strategy, a GBP5 billion package to support the roll-out of broadband and a GBP220 million fund for buses. The investment in voter-friendly projects comes as the Conservatives gear up for an expected general election.
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UK homeowners looking to extend and small developers building new properties could benefit from moves to cut red tape being set out by the government. Housing Secretary Robert Jenrick promised to "speed up and simplify the process" with a forthcoming green paper setting out plans for a streamlined system. The plans will make it easier to demolish unused commercial properties to build new housing – potentially revitalising high streets hit by shop closures.
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Chinese manufacturers saw a modest improvement in conditions in September, with production and total new orders expanding. The seasonally adjusted purchasing managers' index rose to 51.5 in September from 50.4 in August. Despite the "modest" improvement, it still marks the highest reading since February 2018, according to Caixin data. Any reading above 50 represents expansion as opposed to contraction in the sector. The September growth was driven by a faster rise in overall new work compared to August, with new orders rising at its quickest level since March 2018. New orders were being driven by "firmer" domestic demand.
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Japan's industrial production dropped 1.2% from the previous month in August for the first decline in two months, the government said. The fall was steeper than the median forecast of a 0.5% decrease by analysts surveyed by the Nikkei Business Daily, and followed a 1.3% rise in July. The Ministry of Economy, Trade & Industry downgraded the basic assessment, saying industrial production "is in a weak tone recently".
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US President Donald Trump said he wants and deserves to meet the anonymous whistleblower at the center of the fast-moving scandal that has triggered an impeachment probe against him. The whistleblower, who could testify soon before Congress, fears for their safety if their identity is revealed, according to a lawyers' letter released by CBS News. Battling the deepest crisis of his presidency, Trump in a series of tweets railed against accusations that he should be impeached for urging Ukrainian President Volodymyr Zelensky to investigate Joe Biden, his potential 2020 White House challenger.
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BROKER RATING CHANGES
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BARCLAYS CUTS WHITBREAD TO 'EQUAL WEIGHT' (OW) - TARGET 4350 (4700) PENCE
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BARCLAYS RAISES SSE TO 'EQUAL WEIGHT' (UNDERWEIGHT) - TARGET 1300 (1000) PENCE
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EXANE BNP INITIATES (on Friday) HISCOX WITH 'OUTPERFORM' - TARGET 1825 PENCE
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RBC RAISES HOMESERVE TO 'OUTPERFORM' (SECTOR PERFORM) - TARGET 1500 (800) PENCE
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COMPANIES - FTSE 100
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The UK Competition & Markets Authority said it has accepted undertakings offered by packaging firm DS Smith and Liqui-Box and as a result won't refer the planned sale of a DS Smith business to Liqui-Box for Phase 2 review. In August, the UK monopoly regulator had said it was considering proposals made by Liqui-Box related to its acquisition of the flexible plastics packaging arm of DS Smith, after the watchdog had raised competition concerns relating to the deal.
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Royal Dutch Shell said for that for the third quarter it expects to deliver a "strong trading and optimisation performance". In its Integrated Gas unit, Shell said production is expected to be in a range between 930,000 and 960,000 barrels of oil equivalent per day. In the Upstream oil division, production is expected to be between 2.6 million and 2.65 million barrels of oil per day. In the Downstream arm, oil products sales volumes are expected to be between 6.7 million and 7.3 million barrels per day. Shell will report third-quarter results on October 31.
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COMPANIES - FTSE 250
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Ferrexpo said it was aware of allegations made on social media that Chief Executive Kostyantin Zhevago has been served with a notice of suspicion regarding an investigation in Ukraine relating to one of the businesses he owned until 2015. The iron pellet producer said Zhevago has informed the board he has not received a notice of suspicion in accordance with Ukrainian law. Additionally, the company said, the public spreading of "such untrue information" in the media violates his rights as a citizen of Ukraine and causes direct reputational and economic damage to the businesses in which Zhevago is a shareholder. Zhevago strongly denies any allegations of wrongdoing, Ferrexpo added.
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COMPANIES - INTERNATIONAL
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Fast-fashion retailer Forever 21 said it was filing for voluntary bankruptcy, the latest US brick-and-mortar chain to embark on restructuring as shoppers migrate online. The move will see the retailer close up to 350 of its stores worldwide, including up to 178 in its main US market, the Wall Street Journal reported a spokeswoman as saying. The Chapter 11 filing for bankruptcy protection is a "deliberate and decisive step to put us on a successful track for the future," the firm said in a statement.
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German carmaker Volkswagen faces a class action lawsuit over the manipulaton of diesel emissions starting on Monday in a first for German court proceedings. The class action suit at the Braunschweig Higher Regional Court starts more than four years after the emissions scandal became public. Germany has only allowed class action lawsuits since last year. In the Volkswagen cases, individual plaintiffs are represented by vzbv, a German association of consumer protection groups. Some 470,000 car buyers have joined the lawsuit.
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Ford Motor said it has strengthened its partnership with Chinese automobile manufacturer Changan Automobile Co, under which joint venture Changan Ford will accelerate the development of its portfolio. Changan Ford is a joint venture in which Ford and Changan both hold a 50% stake. Under the partnership, both Ford and Changan will cooperate to improve the research & development, production and supply chain capabilities of Changan Ford to launch new products and services. Changan Ford has already launched four vehicle models so far in 2019, and is expected to launch 14 more up to the end of 2021, in order to improve its product lineup.
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Monday's Shareholder Meetings
Accsys Technology
Renalytix
Associated British Engineering
Hardy Oil & Gas
PHSC
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By Tom Waite; thomaslwaite@alliancenews.com
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