Money: Bank of England to probe risks of Woodford-style funds - PressFrom - United Kingdom

MoneyBank of England to probe risks of Woodford-style funds

17:00  11 july  2019
17:00  11 july  2019 Source:

Woodford fund goes into second month of suspension

Woodford fund goes into second month of suspension Fund manager Neil Woodford will keep his flagship £3.7bn fund frozen for at least another month, leaving thousands of investors without access to their money. Mr Woodford, one of Britain's best known money managers, released a video - the second since the Woodford Equity Income Fund was suspended on 3 June - in which he said there was "no prescribed time limit" on how long it could cease trading for. However, the fund's authorised corporate director Link Fund Solutions said in a letter to investors posted on its website that it remained in the "best interests of all investors" to continue the suspension.

The LF Woodford Equity Income Fund and the Woodford Patient Capital Trust may invest in The Fund ’s Swiss paying agent is Neue Helvetische Bank AG. All fund documentation including Woodford Patient Capital Trust plc is incorporated in England and Wales, company number 09405653.

The Bank of England has probed the strength of KPMG’s business after a string of high-profile corporate scandals damaged the reputation of the KPMG is seeing outstanding growth right across our audit, tax and advisory arms, we have a strong balance sheet and are well funded with a growing

Bank of England to probe risks of Woodford-style funds © Getty

The Bank of England will investigate the potential risks of funds like beleaguered trader Neil Woodford’s suspended investment vehicle.

Fund managers are currently able to offer investors daily liquidity when their savings are actually tied up in illiquid and unquoted stocks, which are difficult to transfer quickly into cash.

Woodford’s Equity Income fund was suspended indefinitely after a spike in redemption requests, leaving investors unable to access their money.

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Speaking today as the Bank of England launched its Financial Stability Report deputy governor Jon Cunliffe said it will explore how to “better align the liquidity and the underlying asset with the redemption promise given by the fund.”

Neil Woodford’s listed business plans to cut debt after fund suspension

Neil Woodford’s listed business plans to cut debt after fund suspension Woodford Patient Capital Trust has seen its share value slide over the past month since Mr Woodford froze his flagship fund.

The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker

Breaking news headlines about Bank of England linking to 1,000s of websites from around the world. Bank of England boss Carney warns that Woodford - style funds are 'built on a lie' and pose risks to the financial system This is Money16:28 26-Jun-19.

The central bank will work with the Financial Conduct Authority on its recommendations.

Cunliffe said: “So long as everybody else in the market is offering it [daily liquidity]… it’s difficult for one fund not to offer it.

“For many people these funds are long term investments. If you’re leaving your money there for a long time you don’t really need to be moving it around on a daily basis so it’s not clear just how strong the consumer demand for absolute daily liquidity is.”

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Bank of England governor Mark Carney last month slammed open ended funds.

He told the Treasury Select Committee that the funds were “built on a lie, which is that you can have daily liquidity for assets that fundamentally aren’t liquid”.

Carney said offering clients instant access to their money from funds that were illiquid could make investors complacent about risk.

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