Quantcast
Fate of second Woodford fund to be decided on Wednesday: administrator – Metro US

Fate of second Woodford fund to be decided on Wednesday: administrator

Fate of second Woodford fund to be decided on Wednesday: administrator
By Sinead Cruise, Carolyn Cohn and Simon Jessop

By Sinead Cruise, Carolyn Cohn and Simon Jessop

LONDON (Reuters) – The administrator of the LF Woodford Income Focus Fund said it would make a decision on its future on Wednesday, a day after embattled investor Neil Woodford resigned as its manager and called time on his 30-year career in funds.

Link Fund Solutions said it would inform investors of “the next steps” for the 258 million pound ($330 million) fund, without specifying details on the options under consideration.

Neil Woodford said he was shutting his Oxford-based investment firm on Tuesday following a decision by Link to liquidate his flagship 3 billion pound LF Woodford Equity Income Fund. He also resigned from the two other funds he managed.

The equity income fund, which comprised more than 10 billion pounds at its peak, was frozen in June after a surge in requests from investors to pull out their cash. Hundreds of thousands of retail savers had money trapped in the fund.

After informing staff of his plans, Woodford – once dubbed the Oracle of Oxford for his high-achieving contrarian investment style – also said he was quitting the management of Woodford Patient Capital Trust (WPCT) .

Shares in WPCT, Woodford’s only listed fund, tumbled more than 10% at the open on Wednesday, hitting a fresh record low of 30.36 pence.

The board of the trust said late on Tuesday it was in “advanced discussions” in relation to the ongoing management of WPCT’s portfolio and expected to announce details of new management arrangements shortly.

“During its three-month notice period, Woodford Investment Management has committed to work collaboratively with the board and its advisers throughout this transition period in order to protect the interests of shareholders,” it said in a statement.

(Editing by Susan Fenton)

More from our Sister Sites