You are here: Home - Investing - Experienced Investor - News -

Speculation building that Woodford fund could remain closed into next year

0
Written by: Emma Lunn
07/10/2019
Investors remain in the dark about when Neil Woodford’s flagship equity income fund will re-open, as the famed fund manager struggles to offload assets.

Woodford has already sold more than £1bn of assets but industry insiders have suggested that the resulting cash pot would be unlikely to be enough for investors to get their cash back in December – the latest estimated date for the fund re-opening.

Woodford Equity Income fund was suspended with immediate effect and until further notice on 3 June.

The latest updates from both Woodford Investment Management and Link Fund Solutions, published on 23 September, indicate that the suspension of dealing is likely to last until early December 2019 while the portfolio of assets held by the fund is re-positioned.

Link is providing updates every 28 days. It says that during the most recent 28-day period, which covers much of September, the fund has underperformed in relative and absolute terms. It said a primary reason for the underperformance was the downward revaluation of Benevolent AI, a UK-based healthcare company that uses artificial intelligence for drug development.

The update said that Woodford continued to reposition the portfolio founded on a belief that the global economic environment is not as robust as equity markets are implying.

But Adrian Lowcock, head of personal investing at Willis Owen, told the Telegraph that Woodford “still had a way to go” to meet what could be a high number of redemption requests when trading in the fund resumes.

He said the “last thing” investors would want would be for the fund to re-open and then close again and added that a suspension beyond December was “entirely possible” and that it was possibly the fund wouldn’t re-open until June next year.

Link Fund Solutions and Woodford Investment Management have both declined to comment on Lowcock’s predictions.

The next update from Link Fund Solutions about Woodford is due on 21 October.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week