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Neil Woodford's flagship fund to be wound up | Neil Woodford's flagship fund to be wound up |
(32 minutes later) | |
Well-known stockpicker Neil Woodford's flagship fund is to be wound up, its corporate director Link Fund Solutions has announced. | Well-known stockpicker Neil Woodford's flagship fund is to be wound up, its corporate director Link Fund Solutions has announced. |
But investors will not get any money back until mid-January at the earliest. | |
Mr Woodford has also been removed as investment manager of the fund, which will be renamed. | |
Withdrawals from the Woodford Equity Income Fund have been frozen since early June, after rising numbers of investors asked for their money back. | |
There has been criticism that in the meantime, Mr Woodford continued to charge management fees to customers. | There has been criticism that in the meantime, Mr Woodford continued to charge management fees to customers. |
At its peak, the fund had more than £10bn of people's money in it. | |
Link Fund, which runs the fund on Mr Woodford's behalf, said: "After careful consideration, the decision has now been taken not to reopen the fund and instead to wind it up as soon as practicable. This is with a view to returning cash to investors at the earliest opportunity." | Link Fund, which runs the fund on Mr Woodford's behalf, said: "After careful consideration, the decision has now been taken not to reopen the fund and instead to wind it up as soon as practicable. This is with a view to returning cash to investors at the earliest opportunity." |
It said attempts to sell off Mr Woodford's investments in unlisted businesses had "not been sufficient to allow reasonable certainty" for when the fund would reopen. | It said attempts to sell off Mr Woodford's investments in unlisted businesses had "not been sufficient to allow reasonable certainty" for when the fund would reopen. |
The winding-up is expected to begin on 17 January next year, because rules state that there must be a notice period of at least three months. | The winding-up is expected to begin on 17 January next year, because rules state that there must be a notice period of at least three months. |
A stockpicker - or fund manager - analyses the potential of different stocks to try to decide whether or not they will make a good investment. | |
Mr Woodford is unusual in that he is as close to a household name as is possible from the world of investing. | |
His "star" status was secured following 25 years of market-beating returns with Invesco Perpetual, partly when he saw through the dotcom boom. | |
The Financial Conduct Authority said it welcomed "the removal of uncertainty" that Link's decision provided. | |
"We recognise that investors have been concerned about the state of their investment since the beginning of June," the FCA said. | |
"Winding up the fund will allow the return of money to investors through a number of distributions, likely to begin in January 2020. This means investors should receive some of their money back sooner than had the fund remained suspended for a longer period." | |
Were you an investor in Neil Woodford's fund? How are you affected by today's news? Please get in touch by emailing haveyoursay@bbc.co.uk. | |
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