Third fund is thrown into crisis

A THIRD fund set up by Neil Woodford is seeking a new manager after the collapse of his investment empire.

As well as being sacked by Equity Income and quitting Patient Capital Trust, he resigned as manager of Income Focus.

It plunges the future of the fund into doubt. It was launched in March 2017 and initially pulled in £553m from savers. At its peak in October 2017, it was worth £747m. Last night it was valued at just £253m.

Part of the slump in value was due to investors pulling their money out but underlying investments have also shrunk in value.

Many of the companies held by the Income Focus fund were also held by the Equity Income fund.

Stock market traders now know that Blackrock, which is winding down the Equity Income fund, will sell its holdings as quickly as possible. So as Blackrock begins its fire sale, this will likely drag down the value of the Income Focus fund further.

Both funds are overseen by Link Fund Solutions.