In a regulatory filing published Thursday, Woodford IM said its holding had reached 13.17%.
But in the same filing, Neil Woodford’s fund house admitted it had last made a notification when its holdings sat at 10.35% more than a year ago.
“Due to an administrative error, TR1 forms were not submitted to notify when the 11%, 12% and 13% thresholds were crossed,” the company said in the notification on major holdings filing.
Woodford IM crossed the 11% barrier on 10 January 2017 and the 12% and 13% barriers on 21 April 2017.
Embarrassing
7IM senior portfolio manager Peter Sleep said the error is embarrassing for Woodford, but is unlikely to cause much damage. Sleep said it can be a tricky job monitoring positions sizes unless “excellent” systems are in place.
Woodford had made a point about having strong compliance and control systems when he left Invesco Perpetual to start his boutique, Sleep added.
Sleep said he is more concerned about unlisted securities in Woodford’s fund sitting precariously close to the 10% Ucits threshold and the liquidity of his large stakes in unquoted companies.
Woodford’s decision to sell out of AJ Bell ahead of its flotation and shun Atom Bank’s rights issue raised eyebrows about whether the Equity Income fund was trying to keep on top on liquidity in the face of redemptions.
Portfolio Adviser understands Woodford has appointed a new head of compliance since the error took place.
Russian holding
Raven Russia invests in warehouse companies in Moscow, St Petersburg, Rostov-on-Don and Novosibirsk. It has fallen 7% over one month and 14.9% over one year, according to FE Analytics. It is held in the Equity Income fund and Income Focus funds through a mixture of ordinary and preference shares.
Earlier this month, the rouble tumbled alongside the dollar-denominated RTS rouble-based MOEX Russian indices, as the US announced it would be freezing assets of seven Russian oligarchs and the 12 companies they own or control, 17 senior Russian government officials, and a state-owned Russian weapons trading company and its subsidiary, a Russian bank.
Investors told Portfolio Adviser at the time the sell-off was a chance to buy into Russia’s “exemplary” macroeconomic management.
