As a closed-ended investment trust, Woodford Patient Capital Trust can continue to be bought and sold on the London Stock Exchange as normal. Its share price, which reflects the balance of supply and demand from investors, came under immediate pressure when the suspension of investor trading in the LF Woodford Equity Income Fund was announced, causing the discount between the trust’s share price and its net asset value to widen.
The trust’s net asset value, however, should not be significantly impacted by the suspension. This is because there is a high proportion (more than three-quarters of gross assets) of unquoted assets in the portfolio, which are not subject to the swings in sentiment that affect quoted assets and are therefore considerably less volatile. Furthermore, there is a low level of overlap between the LF Woodford Equity Income Fund and Woodford Patient Capital Trust portfolios.