Wealth manager drops Woodford after suspension

Wealth manager drops Woodford after suspension

Despite this one of the country's largest wealth management firm announced they are to reallocate the mandate on funds under Woodford's management, according to the Financial Times.

Back in June 2017 the size of the Woodford Equity Income fund hit a high of £10.2 billion, but has since fallen to £3.7 billion.

The council said it had initially planned to hold an internal meeting later this month to discuss the poor performance of the fund, but, with investors cashing out at a growing rate, it made a decision to act more quickly. There will be no impact on the investment objective for these funds.

The suspension followed an increase in demand from clients to redeem, and would remain in place until further notice, a statement from Woodford's authorised corporate director, Link Fund Solutions (LFS), said on Woodford's website.

The Woodford Income Focus Fund has been removed from Hargreaves Lansdown's influential Wealth 50 list.

Shares in Woodford's listed investment trust, Woodford Patient Capital Trust, tumbled by more than 20% at one stage despite assurances from Woodford Investment Management that its other funds would be unaffected by the suspension. Articles appear on euronews.com for a limited time.

Investors have taken out about £560mln from the fund over the past four weeks but it was a request from Kent County Council to withdraw £250mln that prompted Woodford to suspend trading.

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To compound matters he burned England's review after being trapped plumb in front by Pakistan leg-spinner Shadab Khan for eight. They play Afghanistan in Saturday's second game, a day-nighter in Taunton. "Pakistan are pretty good like that", he said.

'After consideration of all relevant circumstances relating to the Fund's assets, we have, in conjunction with Woodford Investment Management Limited ("Woodford"), the appointed Investment Manager, come to the conclusion it is in the best interests of all investors in the Fund to suspend the issue, cancellation, sale, redemption and transfer of shares in the Fund.

Ryan Hughes, head of active portfolios at AJ Bell, said: "With an element of the fund in illiquid investments, it is clear that the fund was having to sell the more liquid holdings to fund the redemptions, which in turn can exacerbate the problem".

The move was "necessary to protect investors' interests", he said.

The investment manager has published a video in which he apologises for any distress caused by the suspension and reassuring investors in the fund.

"These flows are particularly flighty, reflecting the fact that more than $30tn of global assets are held in investment funds that promise daily liquidity to investors despite investing in potentially illiquid underlying assets, such as emerging market economy (EME) debt".

A council spokesperson said: "The announcement on Monday that trading in the investment fund was suspended was not anticipated".

Woodford favoured unlisted stocks in the fund but critics say he tended to keep those holdings close to the 10% regulatory limit for investments in unlisted assets that funds like Woodford's face.

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