Woodford listed fund shares drop after valuation cut

LONDON (Reuters) - Shares in Woodford Patient Capital Trust, founded by veteran money manager Neil Woodford, dropped as much as 7% on Monday after the fund cut the valuation of one of its major holdings.

WPCT last month named asset manager Schroders to manage its portfolio after the abrupt exit of Woodford following the winding up of his flagship equity income fund.

WPCT's net asset value will drop by 4.3 pence following the downward valuation of IH Holdings, a unit of cold fusion technology firm Industrial Heat, as well as the upward valuation of another unnamed company, the fund said in a statement.

This follows a previous cut in the valuation of IH Holdings in August.

IH Holdings, an illiquid stock which was previously listed in Guernsey but did not trade, is also a large holding in the Woodford 3 billion pound ($3.88 billion) equity income fund.

Hundreds of thousands of investors are waiting to get money back from the equity income fund, which was frozen for more than four months before being closed. Woodford has come under fire for his over-exposure to illiquid assets.

WPCT shares were trading at 35.5 pence at 0901 GMT, down 6.3%.

(Reporting by Carolyn Cohn and Huw Jones, editing by Louise Heavens)