Money: Neil Woodford seeks to reassure investors after fund suspension - - PressFrom - United Kingdom
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MoneyNeil Woodford seeks to reassure investors after fund suspension

13:10  05 june  2019
13:10  05 june  2019 Source:   msn.com

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Woodford was forced to temporarily shutter the equity income fund after investors started to jump, pulling at least £187m out in May alone. Those redemptions contributed to a total £600m decline in the value of the flagship fund last month; it shrank in size to £3.7bn after hitting a peak of £10.2bn in May

Britain’s investors have been pulling money out of Woodford ’s fund after a sustained period of Savers locked into star fund manager Neil Woodford 's flagship fund , as trading is suspended 'to As Woodford shifts its investments during the suspension , ' investors may have to be patient for the

Neil Woodford seeks to reassure investors after fund suspension © Yui Mok It has been claimed major investors in the fund were given no prior warning that they would be banned from withdrawing their cash (PA)

City heavyweight Neil Woodford has apologised and sought to reassure investors blocked from withdrawing from his multi-billion pound fund after the freeze shocked the Square Mile.

One of Britain’s leading investors, Mr Woodford appeared in a video suggesting his firm faced having to hold a fire sale in order to meet the demand for redemptions from his flagship Woodford Equity Income Fund, which was reported to have hit £10 million a day.

The stock market guru insisted that his firm, Woodford Investment Management, has a strategy in place to stabilise the fund so holders would eventually be able to access their investments. It has been claimed major investors in the fund were given no prior warning that they would be banned from withdrawing their cash.

Woodford in scramble to raise cash after devastating week

Woodford in scramble to raise cash after devastating week Neil Woodford’s wounded fund management empire has sold or transferred close to £600m of stock since the suspension of its flagship £3.7bn fund on Monday, as the one-time star UK stockpicker scrambles to raise cash. Signs that Mr Woodford is unwinding his long-held stock positions will heighten fears of a fire sale of assets in the funds, which have already weighed on share prices of companies across the portfolio as scrutiny intensifies of his firm’s recent conduct.

The suspension gives Mr Woodford time to reposition part of the fund 's portfolio invested in less liquid stocks.

Dealings in fund suspended after it shrunk by £600m in a month, including £187m of redemptions.

Kent County Council, which attempted to withdraw £263 million invested in the Equity Income Fund, said it asked the company for its cash on Monday but within hours bosses suspended all withdrawals. In the three-minute clip Mr Woodford said he was “extremely sorry that we’ve had to take this decision”, adding: “When it is appropriate we will open the fund so that you can buy and sell as normal.

Video: Fund suspension update from Neil Woodford

“As difficult a decision as this is, and clearly frustrating for you, our investors, we felt that this was necessary to protect your interests. “The situation that we confronted was that we were seeing a lot of outflow in the portfolio. As a result of that increased level of redemptions what we were seeing was the stock market in a way anticipating the fact that we would have to be sellers of stocks to meet those redemptions.

“We felt that the prices that we would have to achieve in order to meet those redemptions would be disadvantageous for our investors.” He added: “Fundamentally the strategy remains the same; investors’ money is preserved in the assets in which we invested and the portfolio continues to work for our investors.”

Neil Woodford firm ‘pleased’ with progress despite investor uproar

Neil Woodford firm ‘pleased’ with progress despite investor uproar Last week, Mr Woodford stopped people taking their money out of the Woodford Equity Income Fund. The City heavyweight suffered a nightmare week after suspending the fund “to protect investors’ interests” after they withdrew around £560 million from it over the previous four weeks. Woodford Patient Capital Trust has said it believes it “continues to have the potential to deliver attractive returns”, despite the subsequent slump in share value. Susan Searle, chairwoman of Woodford Patient Capital Trust, said: “The board is closely monitoring the situation and is engaging with its shareholders and advisers.

Neil Woodford 's contrarian investment strategy has put him at odds with market moves in the past two years. Mr Woodford was forced into such a risky move because of the fund ’s holdings. So unless he can materially reduce his unlisted exposure to reassure investors , when reopening, that the fund

Superstar fund manager Neil Woodford has stopped investors withdrawing money from his main fund after a series of bad bets prompted clients to rush for the door. Britain's most high profile stock picker, Mr Woodford has seen his main fund shrink from £10.2bn to £

Mr Woodford said the suspension would buy the firm “time and space” to execute a plan which “is about reducing the fund’s exposure to illiquids and unquoteds down to zero”. That capital will be redeployed in “more conventional” stocks on the FTSE 350 and FTSE 100, he explained.

Shares in Mr Woodford’s listed investment trust plunged on Tuesday after it emerged the flagship portfolio had been frozen. Woodford Patient Capital Trust’s shares were down more than 7% by the close of trading on Tuesday, having fallen as much as 21% at one stage, amid concerns of knock-on effects from the suspension.

Shares of other stocks that count Mr Woodford’s fund among their biggest investors also fell heavily after the move, with construction giant Kier Group down 6% on the FTSE 250. And fund supermarket Hargreaves Lansdown saw shares drop 5% on the FTSE 100 after it said it could no longer include the Woodford Equity Income Fund or Woodford Income Focus Fund on its “Wealth 50” list, which is used by thousands of customers to decide where to invest.

Neil Woodford under pressure from City watchdog over fund fees

Neil Woodford under pressure from City watchdog over fund fees Financial Conduct Authority boss Andrew Bailey said Mr Woodford should ‘consider his position’ on charging fees for his suspended fund.

Investment guru Neil Woodford ’s multi-billion-pound equity income fund has blocked holders from pulling out after an exodus of investors . “Following an increased level of redemptions, this period of suspension is intended to protect the investors in the fund by allowing Woodford , as previously

Woodford Investment Management tried to reassure investors that its other funds would be unaffected by the suspension . Woodford - one of Britain's highest-profile fund managers - said yesterday that the suspension of its flagship fund had been taken to 'protect' investors and

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Neil Woodford seeks to reassure investors after fund suspension
In the video Mr Woodford said the Focus Fund remained “open as normal” to buying and selling and it had no exposure to the same illiquid and unquoted securities. The City watchdog said it was in contact with Woodford Investment Management “to ensure that actions undertaken are in the best interests of all the fund’s investors”.

The Woodford Equity Income Fund is the company’s largest, with a reported value of £3.7 billion, but this is down heavily on the £6.8 billion recorded a year ago. According to the Financial Times, the fund, launched four years ago, was valued at £10.2 billion in May 2017.

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Fidelity Personal Investing blocks customers from investing in Woodford's Income Focus Fund.
Customers with Fidelity will continue to be able to withdraw money from the £325million fund, but won't be allowed to buy new units.

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