Savers’ fury as Woodford cashes in £1m

FUND manager Neil Woodford sparked further anger last night after cashing in £1million of shares just as his investors were warned they face being denied access to their money until December.

It was announced yesterday that Mr Woodford, 59, was a ‘reluctant seller’ of shares in his Woodford Patient Capital Trust to settle personal liabilities, including a tax bill.

But hours later, investors with money in the separate Woodford Equity Income fund were told a block on withdrawals was likely to be extended to December. Savers were barred from taking their money out of this fund two months ago after Mr Woodford ran out of ready cash.

Although savers cannot access their nest eggs, Mr Woodford is still charging fees totalling almost £100,000 every working day. His company is on course to rake in almost £12million before the doors are reopened.

Baroness Altmann, a former pensions minister, said: ‘This situation is a disgrace. I just can’t believe that a fund manager of his long standing is unable to see the distress he is causing.’

Mr Woodford sold 1.75million shares in Patient Capital, 60 per cent of his holding with a value of around £1million, between July 3 and 8. He told the trust’s board only on Saturday, three weeks later.

Alex Brummer – Page 67