Latest news on Woodford Investment Management is that the firm is to close.
Ryan Hughes, head of active portfolios at AJ Bell, comments: “The closure of Woodford Investment Management had a feeling of inevitability about it. Without the fees from the equity income fund and with no performance fee coming from the Patient Capital Trust, it was difficult to see how the business could survive.
“This creates further uncertainty for a larger number of customers and the key now is that they are given information about what is going to happen to their investments as soon as possible. The Board of the Patient Capital Trust has clearly been considering its options already and I’d expect to see an announcement very soon from them. I’d also expect to see an announcement tomorrow from Woodford or Link about the future of the Income Focus fund.”
Adrian Lowcock, head of personal investing at investment platform Willis Owen, also commented, saying: “Following the news [this morning] the future of Woodford Investment Management was bleak. The decision to close the company is unfortunately the right one as it will put a stop to the inevitable speculation. ”
“Woodford’s decision to step down from the board of Woodford Patient Capital Trust was no doubt a hard decision but given Woodford’s presence had become a distraction to the trust it was also the right thing to do.”
“Investors money is ring-fenced and will remain invested in the respective funds and in the underlying investments.”