While they make up a small proportion of the portfolio and are unlikely to affect the headline returns on the £12bn fund, they do give an insight into how the manager picks stocks.
FE Trustnet recently published comments from Charles Cade, head of investment company research at Numis Securites, suggesting that investors should look to trusts on a discount rather than simply those with a good track record, and our research suggests Woodford (pictures) subscribes to this view.
All of the trusts are on a considerable discount and have experienced periods of poor performance in the recent past.
Crystal Amber Fund
Woodford holds this offshore smaller companies trust, which invests in undervalued companies and encourages their boards to realise their assets.
NAV rose 35.3 per cent in 2012, with the share price up 37.99 per cent, suggesting that the manager chose well.
Performance of trust vs sector over 1-yr
Source: FE Analytics
Following such a strong year it was picked by Cade as a trust on a substantial discount with a great chance of narrowing that figure in 2013.
According to AIC figures, the current discount is 14 per cent, meaning that there is considerable scope for a boost to investors’ gains if it narrows.
Performance has not always been strong: the trust lost 19.1 per cent in 2010 and 9.81 per cent in 2011.
It is domiciled in Guernsey and has a performance fee, which resulted in a total expense ratio (TER) of 2.63 per cent last year, according to the AIC.
Raven Russia
This property investment company invests in Russian property, a sector that is unlikely to be most retail investors’ first port of call.
It is another to have had a strong 2012, having risen 22.12 per cent in share price terms; while it was hit hard by the financial crisis of 2007 and lost 89.13 per cent, it has since recovered most of those losses and is up 20 per cent over three years.
Performance of trust over 3yrs
Source: FE Analytics
It is currently sitting on a discount to NAV of 11 per cent, according to Numis.
The company's portfolio is mainly made up of warehouses and it is currently 95 per cent let overall. It is fully let in Moscow, St Petersburg and Rostov.
Numis says that the company is well set for growth, with 49,000m2 of new space set to be put on the market, and adds that it is an attractive investment given the discount and the favourable letting market for Russian warehouses.
The company is not a member of the AIC, making it harder for investors to get information on it, although Woodford probably does not have that problem.
Over the past five years it has been extremely unstable, its share price displaying annualised volatility of 46.18 per cent, according to data from FE Analytics.
Juridica Investments
This trust invests in litigation claims, either buying a stake in the claim or loaning money to law firms wishing to litigate.
FE Alpha Manager James Sullivan also holds it in the CF Miton Total Return fund.
Sullivan recently told FE Trustnet that the trust was seeing an uptick in performance as many of its investments reach a conclusion.
It is trading on a discount of 23 per cent, according to AIC figures.
Performance of trust since launch
Source: FE Analytics
It has lost 12 per cent in share price terms since the middle of December, but is 31 per cent up on its price since the end of May.
One of the main attractions of the trust is its yield – which is currently 14.3 per cent, the highest available on an investment trust.
However, it has a performance fee that results in a very high ongoing charges figure – 2.83 per cent over the last year, according to the AIC.
Macau Property Opportunities
Woodford also holds the Macau Property Opportunities trust, which is currently trading on a discount of 32.4 per cent.
It is up 19.78 per cent over the last three years. The highly volatile trust has had a particularly strong month – up 15.05 per cent, according to our data.
The £61.7m portfolio invests in the property market of Macau and the surrounding Western Pearl River Delta region of southern China.
It has an ongoing charges figure of 3.16 per cent.