Woodford exits Royal Mail stake on regulatory concerns

[TrueBlueTerrier]

http://www.investmentweek.co.uk/investm ... y-concerns" onclick="window.open(this.href);return false;

Neil Woodford has sold out of his holding in Royal Mail, which he has held since the launch of his £8bn Equity Income fund, over regulatory concerns.

The stock, which he began reducing in December, is now no longer part of his Woodford Equity Income portfolio, as he is concerned about the regulatory environment affecting the company.

He initially bought into Royal Mail when he first launched his fund back in August 2014, taking a 1.5% position in his portfolio.


At the time, Woodford (pictured) said there was scope for the company to improve its profits and generate sustainable value for shareholders.

However, in an update for investors this month, Woodford IM told investors: "This is still an attractively valued business, in our view, but we are increasingly concerned about the regulatory environment and the ability of the company's management team to retain the benefits of cost rationalisation and potential property disposals for its shareholders, rather than for other stakeholders such as staff and pensioners.

"We therefore sold the holding in favour of other opportunities in which we have more confidence and where share prices have become increasingly attractive in recent weeks."

The share price of Royal Mail has fallen almost 12% over the past six months to trade at 443p. Royal Mail floated in October 2013 at an offer price of 330p.

With the proceeds of the sale, the manager has added to holdings in US biotech companies and in UK firms Next, G4S, Legal & General, Provident Financial and NewRiver Retail.

The £7.9bn Woodford Equity Income fund has returned 4.2% over the year to 4 February relative to an IA UK Equity Income sector average loss of 3.8%.

[pants123]

The bloke ia a first class a-hole..... needs to get out on a delivery, and see how crippling delivery is on staff..... all in the name of profit, hope he chokes on money, with his smug face...

[nataddick]

Neil Woodford is an institutional investor who has realised what those of us on the inside have known for years. He doesn't like what is happening at RM and has got out. He will be replaced by other investors who have acquired the shares he has sold.

The fact that he is one of the UK's most respected fund managers who has the inside track on how RM is performing is a genuine cause for concern and should be taken seriously.

[pants123]

Neil Woodford is an institutional investor who has realised what those of us on the inside have known for years. He doesn't like what is happening at RM and has got out. He will be replaced by other investors who have acquired the shares he has sold.

The fact that he is one of the UK's most respected fund managers who has the inside track on how RM is performing is a genuine cause for concern and should be taken seriously.

Same here too.... i dont like whats happening at royal mail.... being forced to work inpossible work loads..... literally crawling on my hands and knees to get home..

And there is rumours of 6 hour delivery...

Well i can tell you now... staff will end up in hospital.. including myself.... all so.... overtime being worked in good will...and not being paid by royal mail...... thats stealing... their stealing money from the staff... and it's illigal...

[bogstandard]

However, in an update for investors this month, Woodford IM told investors: "This is still an attractively valued business, in our view, but we are increasingly concerned about the regulatory environment and the ability of the company's management team to retain the benefits of cost rationalisation and potential property disposals for its shareholders, rather than for other stakeholders such as staff and pensioners.

pretty much says it all.

Q does RM own shares in RM

[toomuchcoke]

However, in an update for investors this month, Woodford IM told investors: "This is still an attractively valued business, in our view, but we are increasingly concerned about the regulatory environment and the ability of the company's management team to retain the benefits of cost rationalisation and potential property disposals for its shareholders, rather than for other stakeholders such as staff and pensioners.

pretty much says it all.

Well if all the cost savings and/or proceeds from property sales end up either propping up the final/average-salary pension scheme and/or getting paid out to the staff then it's fair to say that the owners of the company wouldn't exactly have benefited.

Q does RM own shares in RM

As of the last annual report, the Employee Benefit Trust[1] owned 40,935 shares but the company itself didn't own any part of itself.

[1] I'm guessing that the shares for the SAYE scheme?