Woodford Equity Income fund sells out of BT

Neil Woodford

Neil Woodford’s equity income fund has sold out of BT the company confirmed in its latest monthly update.

“For a while, we have had some concerns about its pension deficit and the relationship between the business and its regulator,” Woodford Investment Management head of investment communications Mitchell Fraser-Jones says in the update.

But he adds that these did not prompt the decision and it was instead driven by “competition for capital” in the portfolio.

“In order to increase exposure to the best opportunities others have to be reduced,” Fraser-Jones says.

The fund added to several existing positions in May, including Next and Provident Financial.

Unquoted battery materials company Nexeon has been added to the portfolio for the first time and the Patient Capital Trust has also initiated a position.

The company develops materials to replace carbon in rechargeable lithium ion batteries.

The Patient Capital Trust sold out of regenerative technology business Tissue Regenix, healthcare company BTG and particle engineering house Midatech Pharma to raise cash, but other portfolios continue to own shares.

Earlier this month Woodford IM increased its stake in science and technology investor Imperial Innovations to more than 20 per cent.

Woodford IM’s view on the EU referendum is that it will not impact the long-term economic outlook for the UK.

“We face a challenging economic future regardless of its outcome and we will not be changing the portfolio strategy if the country votes to leave or stay,” Fraser-Jones says.