Investments  

How Woodford is spending a £36.5m dividend

How Woodford is spending a £36.5m dividend

Woodford Investment Management, the fundhouse founded by Neil Woodford, posted a profit of £41.7m for the year to the end of March 2018, despite the funds being in the midst of a torrid period of performance.

Accounts for Woodford Investment Management showed a dividend of £36.5m was paid out to Woodford Capital, which is the parent company.

This company is 65 per cent owned by Neil Woodford and 35 per cent by Craig Newman, the company’s chief executive, who is also a former employee of Invesco.

Woodford Capital is an unlimited company, which means it does not have to file accounts, though it is registered in the UK and pays UK corporation tax.

The dividend of £36.5m will be divided in four ways, to provide an income to Mr Woodford and Mr Newman, to be reinvested in the funds run by Woodford Investment Management, to make charitable donations, or retained as cash.

No information is disclosed as to the directors' renumeration.

The average assets under management for Woodford Investment Management for the year to March 2018 was £15.9bn.

The company warned that the funds have experienced significant outflows since then, and this is likely to impact profits for the year to March 2019.

Woodford Investment Management receives no fee for managing the Patient Capital Investment Trust, unless that product achieves a return of at least 10 per cent in a year.

A representative of the company said: "Woodford directly employs a head of CSR who has devised and implemented a strategic programme supporting core costs and infrastructure within the third sector in the UK.

"Significant sums (inclusive of Gift Aid) are provided personally by the directors to fund this work.

"This money is held in, and distributed from, Charities Aid Foundation Trusts and includes helping to fund the creation of the Charity Futures programme, led by Sir Stephen Bubb that will help to provide an insight into what changes might help charity and philanthropy to deliver the maximum future impact."

The flagship Woodford Equity Income fund has dropped in size rom £10.1bn at its peak to below £5bn now. In performance terms the fund lost 16 per cent in 2018.  

david.thorpe@ft.com