Money: Woodford in scramble to raise cash after devastating week - PressFrom - United Kingdom
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MoneyWoodford in scramble to raise cash after devastating week

18:05  09 june  2019
18:05  09 june  2019 Source:   msn.com

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.

This week ’s stock market trades reflect close to £100m of equity sales by Mr Woodford ’s funds, which need to raise liquidity to meet a potentially devastating call for cash when they reopen for trading. The remainder mostly reflect the transfer of shares to new managers of funds for St James’s Place, the

Woodford in scramble to raise cash after devastating week https://on.ft.com/2IpRsie.

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.

Video: Fund suspension update from Neil Woodford (Yahoo Finance UK)

Mr Woodford, however, hit back at suggestions he was liquidating his portfolio. “This is categorically not a fire sale,” said a Woodford spokesman. “Neil has sold £95m of stocks this week as he continues to reposition the £3.7bn Woodford Equity Income Fund portfolio.”

Neil Woodford seeks to reassure investors after fund suspension

Neil Woodford seeks to reassure investors after fund suspension Redemptions from the fund were 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. 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.

I'm afraid Mr Woodford 's goose is cooked. Why that phrase is shorthand for someone in a parlous or impossible position I don't know. When he was the King of Stock Pickers at Invesco did we say his goose was underdone?

Woodford , one of Britain’s best known investors, froze his Equity Income Fund on Monday as too many people were asking for their money back after a British hedge fund Toscafund snapped up shares in Purplebricks after Woodford started selling his stake this week , raising its position to 10.11% from

This week’s stock market trades reflect close to £100m of equity sales by Mr Woodford’s funds, which need to raise liquidity to meet a potentially devastating call for cash when they reopen for trading.

The remainder mostly reflect the transfer of shares to new managers of funds for St James’s Place, the wealth manager and longstanding backer that this week yanked a separate £3.5bn investment mandate from Mr Woodford’s firm.

Philip Warland, an investment industry grandee who advises UK fund boards, said Mr Woodford needed to “create a liquidity pool of at least £1bn”.

“When they reopen it will not just be Kent leaving,” he said in reference to the Kent local authority pension scheme that on Monday unsuccessfully sought the return of its £263m invested in the Equity Income Fund, a demand that triggered the fund’s suspension.

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.

* Funding rates seen returning to normal next week . * Market activity light due to skeletal staffs. NEW YORK, Oct 31 (Reuters) - Wall Street firms and U.S. banks scrambled to raise cash on Wednesday, as U.S. financial markets resumed normal trading after a devastating storm pummeled the U.S. East

* U.S. money market rates elevated after storm. * Funding rates seen returning to normal next week . * Market activity light due to skeletal staff. * Money fund assets plunge partly on Sandy-iMoneynet. NEW YORK, Oct 31 (Reuters) - Wall Street firms and U.S. banks scrambled to raise cash on Wednesday

Woodford in scramble to raise cash after devastating week The people who are losing out here are the end investors

Paul Myners, former UK City minister

Mr Woodford has taken centre stage during the most tumultuous week for the UK’s £8tn asset management sector since the 2008-09 financial crisis. He stunned the investment community by closing his largest fund to investor redemptions and two days later was deserted by St James’s Place.

Woodford Investment Management managed assets of more than £15bn two years ago but it had fallen to £10bn in March. On Friday, its assets were below £5bn, with some three-quarters of that in the stricken equity income fund.

In a further setback, shares in the FTSE 350 Woodford Patient Capital Trust closed at a fresh all-time low of 62.5p, a 28 per cent discount to the investment vehicle’s net asset value, and down from April 2015’s 100p launch price.

Woodford in scramble to raise cash after devastating week On Friday, the FT learnt that Mark Dampier, the research director of Hargreaves Lansdown who played an unprecedented role championing Mr Woodford, was set to retire as early as next year after selling £5.6m of shares in his company and avoiding a major slump caused by links between the two.

How three of Britain's best-known fund bosses pocketed £105m between them, sparking concerns the industry is out of control

How three of Britain's best-known fund bosses pocketed £105m between them, sparking concerns the industry is out of control Terry Smith (pictured) and Nick Train together pocketed up to £81.2 million. And Neil Woodford, who was similarly adored before a meltdown, is entitled to a £23.7 million dividend.

* U.S. money market rates elevated after storm. * Funding rates seen returning to normal next week . * Market activity light due to skeletal staffs. * Some firms heard withdrew from money funds before Sandy. NEW YORK, Oct 31 (Reuters)

NEW YORK, Oct 31 (Reuters) - Wall Street firms and U.S. banks scrambled to raise cash on Wednesday, as U.S. financial markets resumed normal trading after a devastating storm pummeled the U.S. East Coast and closed major markets for two days.

Mr Dampier, who had called Mr Woodford “one of the UK’s best fund managers”, sold £600,009 of Hargreaves Lansdown shares on May 16 and his wife Annette sold £5m.

Paul Myners, the former UK City minister, said the Financial Conduct Authority should evaluate the impact of Mr Woodford transferring former investment funds to new managers on behalf of St James’s Place and Openwork, his final two large clients that dumped him this week.

“Woodford held the same shares across all his portfolios and you’ve now got this sudden panic and he’s dumping his investments and so are other manages who own the same stocks,” Lord Myners told BBC’s Today programme. “Those shares are being driven down to ridiculously low prices.

Woodford in scramble to raise cash after devastating week “The people who are losing out here are the end investors — the professionals are OK, the regulator will give itself two years to carry out a review of what went wrong and the same risks will continue of allowing illiquid assets to be put in portfolios which are treated as though they are liquid.”

Shares sold by Woodford funds include NewRiver, a property group; Watkin Jones, the construction group; Ten Entertainment, a media group; and Purplebricks, an online estate agency.

According to stock exchange filings, Mr Woodford’s group has transferred out of stakes of roughly 5 per cent in companies including Countryside, IP Group, Allied Minds, Provident Financial, Crest Nicholson, Amigo and Kier. His funds have reported reduced stakes in Barratt, Taylor Wimpey, Redrow and Babcock to below the 5 per cent threshold.

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