Another fund suspended after Woodford decides to shut down investment empire
THE fate of another fund run by Neil Woodford hangs in the balance after trading was suspended following the disgraced investment guru’s decision to resign as manager.
Shares in the Woodford Income Focus Fund have been suspended from dealing amid a rush to pull out investor money, with administrators now considering all options, including possibly winding up the fund.
Link Fund Solutions, which administers the fund, said the move was made to protect investors.
It follows Mr Woodford’s decision late on Tuesday to quit as manager of the fund and close
down his investment management business after he was sacked from his flagship £3bn Woodford Equity Income Fund, which will now be wound up.
The equity income fund had been frozen since June, locking thousands of investors out of their cash and plunging Mr Woodford’s investment empire into crisis.
Link said it was looking at the possibility of appointing an alternative investment manager for the income focus fund.
However, it added it is also considering winding it up.
In a letter to investors, Link said: “After consideration of all relevant circumstances relating to the fund’s assets, we have come to the conclusion that it is in the best interests of all investors in the fund to suspend the issue, cancellation, sale and redemption of shares in the fund.
“The period of suspension is intended to protect investors from this anticipated increased level of redemptions in the fund.”