Here’s an extract from the article (emphasis is mine) …
‘Another fund run by disgraced financier Neil Woodford was suspended today as investors — many of whom used their life savings— rushed to pull outup to £258million in cash.
‘Link Fund Solutions, which administers the Woodford Income Focus Fund, said the move was made to protect those with cash invested as its value plungedfrom £500million since April.
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‘Hundreds of thousands of investors are already facing huge losses after the investment empire run by disgraced fund manager Woodford crumbled to dust last night as it emerged his flagship £3billion Woodford Equity Income fund will be wound down.
‘And now shares in a second smaller fund — the Woodford Income Focus Fund — have also been suspended from dealing amid a rush to pull out investor money.’
The ‘Income Focus Fund’ (the one that offered a higher return than cash) has had an abrupt change of nature.
Income is no longer the focus.
Investors are now focused on getting their capital (life savings) back.
How much (or how little) they might ultimately be paid out is an unknown.
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What was the former investment guru’s big mistake?
According to The Financial Times on 16 October 2019 (emphasis is mine)…
‘…he [Woodford] was later known for a reckless investment style,piling into illiquid and unquoted stocks, which led to the destruction of his clients' savings.”
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