We have charted the sorry progress of Neil Woodford and his stable of funds since the suspension of the flagship Woodford Equity Income fund back in June; it’s a train of events with far-reaching implications for the fund industry.
Neil Woodford’s dramatic fall from grace risks dampening the appeal of smaller-company investing, cautions Peter Ewins, lead manager of the BMO Global Smaller Companies investment trust.
The appointment of Schroders as the new manager of Woodford Patient Capital was welcomed by investors, with the announcement (on 24 October) leading to a 21.3% rise in its share price at market close.
Woodford Patient Capital’s share price has soared in early trading, following the announcement that Schroders has been appointed the new manager of the trust.
Schroders will take the reins by the end of 2019 and will manage the trust in line with its current investment objective of investing in both quoted and unquoted UK companies. The trust will be renamed Schroder UK Public Private Trust.
With the announcement that Woodford Equity Income Fund will be liquidated, I am sure that everyone hopes that investors will get as much of their money back as soon as practicable. However, investors might also expect that measures were in hand to prevent these types of problem from happening again. Unfortunately, they are not.
Money Observer articles on the subject of Neil Woodford in the doghouse and the importance of liquidity (September issue) have led me to reflect on questions to be asked in the wake of the Woodford fiasco.
As the story behind Woodford continues to evolve, and it becomes easier and cheaper to manage investments on platforms, the following questions are pertinent.
Following the decision to wind up Woodford Equity Income fund, Neil Woodford has stepped down from his role as manager for Woodford Patient Capital trust and announced that Woodford Investment Management will also be closing down.
Money Observer deputy editor Kyle Caldwell talks to Money Observer staff writer Tom Bailey and Lee Wild, head of equity strategy at interactive investor, about the closure of Neil Woodford's flagship fund, Woodford Equity Income, and what it means for investors. For example, will institutional investors be prioritised in the payout process over private investors?
Neil Woodford has been fired as the manager of his flagship Woodford Equity Income fund (WEIF), which will now be wound up.
The fund was suspended in June after it was unable to return money to investors attempting to leave the fund due to its number of unlisted company holdings.
The board of Woodford Patient Capital has remained tight-lipped on Neil Woodford’s position as manager of the investment trust in the wake of the news that LF Woodford Equity Income is to be wound up.