Woodford fund suspended until December - AJ Bell comment

Ryan Hughes
29 July 2019

Comment on the announcement that Woodford’s fund will remain suspended.

“This announcement at last gives a timeframe for investors in the Woodford fund, with Link saying that the fund suspension is likely to last until early December. This gives much-needed clarity for investors but they are likely to remain concerned. The fact that Link and Woodford have given a timeframe suggests they have some confidence in the fund re-opening in December, but this will still mark six months of fund suspension that investors have had to navigate,” comments Ryan Hughes, head of active portfolios at AJ Bell.

“Unfortunately the performance figures don’t provide much of a boon for investors, with the fund down 3.3% since it closed in June 3rd, compared to the FTSE All Share return of 5.3% during that time. The past month has seen the fund rise by almost 1% while the market had risen 1.8%. 

“The latest comments from the Patient Capital investment trust board will give further pause for investors in Woodford’s funds, and show a hint at the potential tension between the board and Woodford Investment Management. But as investment trust boards are independent it’s good to see them fulfilling their responsibilities as independent directors.”

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