Bank of America Corporation has significantly reduced its position in Pennon Group plc (PNN), the UK-listed water and waste services company, according to a TR-1 major holdings notification published on 30 October 2026. The US financial giant's total combined holding fell to just 0.367549% of voting rights, down sharply from a previous position of 5.373451%. The threshold crossing occurred on 28 October 2026, triggering a regulatory disclosure obligation under DTR5 rules. The scale of the reduction is likely to attract attention from investors monitoring institutional sentiment in the UK water sector.

Key Points

  • Pennon Group plc (PNN), ISIN GB00BNNTLN49, is the issuer subject to this major holdings notification
  • Bank of America Corporation disclosed its total voting rights position fell to 0.367549% from a prior notified level of 5.373451%
  • The threshold was crossed on 28 October 2026, with the notification submitted to Pennon on 30 October 2026
  • Investors may watch for further institutional position changes in Pennon given the size of this reduction

Bank of America's Total Pennon Voting Rights Position Falls to 0.37% from 5.37%

The notification reveals that Bank of America Corporation's aggregate position in Pennon Group, combining direct and indirect voting rights attached to shares with financial instruments, dropped to 0.367549% as of 28 October 2026. This compares with the previously notified combined figure of 5.373451%, representing a reduction of more than five percentage points. The total number of voting rights held in the issuer following the threshold crossing stands at 1,734,765, as stated in the announcement. The disclosure was completed in London on 30 October 2026, with Bank of America registered in Wilmington, United States.

Breakdown of Remaining Shares, Recall Rights and Cash-Settled Swaps Held by BofA

Of the residual 0.367549% position, shares carrying direct and indirect voting rights account for just 0.027959%, representing 131,962 shares held across two ISIN codes. A right to recall instrument covering 4,800 voting rights contributes a further 0.001017%. The bulk of the remaining economic exposure sits in cash-settled swap contracts: three separate swap positions with expiry dates in December 2026, October 2027, and April 2028 together cover 1,598,003 voting rights, equivalent to 0.338573%. The announcement notes the swaps are cash settled, meaning they do not confer direct voting rights upon exercise.

Controlled Undertakings Named in BofA's DTR5 Chain of Disclosure

The notification identifies the chain of controlled undertakings through which the voting rights and financial instruments are effectively held. These entities include Bank of America, National Association; U.S. Trust Company of Delaware; and BofA Securities, Inc., all ultimately controlled by Bank of America Corporation. No individual percentage breakdowns at the subsidiary level were provided for undertakings below the notifiable threshold, in line with standard TR-1 reporting practice. The company did not disclose this figure in the announcement for the individual subsidiary-level holdings.

Pennon Group's Regulated UK Water Operations Provide the Institutional Context

Pennon Group plc is a FTSE-listed UK water utility, operating primarily through South West Water, which provides water and wastewater services across the South West of England. As a regulated utility, Pennon's revenues and asset base are overseen by Ofwat, making it a sector where institutional ownership levels are closely tracked by market participants. Large movements in institutional positions, such as the reduction disclosed here by Bank of America, can reflect portfolio rebalancing or changes in derivatives strategies rather than fundamental views on the underlying business, though the announcement does not specify the reason for the disposal.