Was Woodford wronged?
Who else was responsible for the fund’s downfall? Why ditch Woodford now when the damage has been done? And is the fund manager being made the fall-guy for an industry-wide issue?
Neil Woodford has become the face of evil in the asset management industry. Fair enough. The investment portfolio he presided over which was once worth £15bn is set to be liquidated after a series of poor decisions have left it incapable of recovery. The once star fund manager made the fatal error of filling his low-risk income fund with high-risk illiquid stocks, which couldn’t be sold to raise cash when investors – spooked by poor performance – rushed for the exit. Compounding the dreadful image is the fact that Mr Woodford’s company has raked in an estimated £8m in management fees…