Neil Woodford could face axe at listed trust as he sells £1m of shares

Embattled fund manager Neil Woodford could be fired from his eponymous investment trust as he risked further fury by cashing in £1 million in shares.

The fallen star, scrambling to sell companies to reopen his shuttered Equity Income fund, faced a hammer blow after the board of the FTSE-250 listed Woodford Patient Capital Trust said it was considering ditching him for another manager.

The company said it had held “preliminary discussions” with rival fund managers about handing them the mandate to run the £500 million fund.

“The board intends to engage with a broader range of third-party managers in order to undertake a full assessment of all potential management options, which may or may not lead to a change in the company’s management arrangements,” it said.

Launched in 2015, Woodford Patient Capital is a popular investment trust held by hundreds of thousands of retail investors and mirrors many of the holdings in the Equity Income fund.

But unlike the closed Equity Income fund, Patient Capital is a stock market-listed company, meaning savers can buy and sell shares freely.

The possible sacking came as the company revealed Woodford had sold a large chunk of shares in the trust worth nearly £1 million.

The 59-year-old sold 60% of his investments in early July to meet “personal financial obligations”, including a tax bill. He now owns a stake worth £662,500 in the trust.

A Woodford spokesperson defended the share sale. “Neil is often asked if he has skin in the game and as he said recently in a video on the equity income fund suspension, all of his financial investments are held in Woodford funds,” he said. “During the period of suspension, Neil will not be paid any income or dividends.”

He added Woodford “remains committed” to the Patient Capital Trust.

Woodford has faced criticism for charging customers management fees on the Equity Income fund despite them being unable to access their cash.

Customers locked into the Equity Income fund are set to get more details today from fund administrator Link as part of a 28-day rolling update schedule. The fund is due to be closed for a further month but Link could give an indiciation about when it could open again.