neil woodford

Funds Fan podcast: Woodford investor payouts, and Isas and the coronavirus

February 10, 2020

In the latest Funds Fan episode, host Kyle Caldwell, deputy editor of Money Observer, examines topics including the Woodford payouts and Nick Train with guests Tom Becket, chief investment officer of Punter Southall Wealth, and Tom Bailey, staff writer at Money Observer. The podcast also tackles a reader’s question on the coronavirus, while interactive investor’s Teodor Dilov names his fund of the week.

Funds Fan is a podcast brought to you by interactive investor in partnership with Money Observer magazine and Moneywise magazine. Listen here:

How should the wind-up of LF Woodford Equity Income be treated for tax purposes?

I'm looking for guidance on how the winding up of LF Woodford Equity Income should be treated for tax purposes. I expect that this might be a subject that quite a few of your readers will also need to understand.

Let's suppose I paid 120p for some units, and I receive 60p for each of those units from the January payment, and the estimated total payments will eventually be 85p per unit. Would I, for this tax year:

Fate of Woodford Income Focus fund decided

The fate of Neil Woodford’s other open-ended fund has been decided, with Aberdeen Standard Investments appointed to manage the LF Woodford Income Focus fund.

Thomas Moore and Charles Luke will manage the £268 million fund, which was suspended on 15 October following the resignation and subsequent swift closure of Woodford Investment Management.

Should investment funds face bank-style stress tests?

Investors trapped in the beleaguered Woodford Equity Income fund were hoping that the shuttered fund might reopen in December and they could get their money back. But instead of a Christmas miracle, they’re getting a lump of coal in their stocking, with heavy losses likely as the fund is wound up.

This case has shocked the fund management industry, and raises the question of whether funds should face bank-style stress tests to make sure they can meet redemption requests in falling markets.