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The arguments against open-ended funds
In the wake of the suspension to the Woodford fund, several industry figures have spoken out against open-ended funds that offer seemingly impossible liquidity for investors
As the dust begins to clear from the calamitous fall from grace of former superstar asset manager Neil Woodford, the wider fallout for the industry is just beginning. The Woodford Equity Income Fund remains suspended, most likely until December, while the portfolio is ‘re-positioned’.
The firm itself is keen to explain this suspension as being to allow a return to something close to what might be called a new business as usual. As a statement on the firm’s website suggests, the suspension affords Woodford and his team “the required time to execute the changes to the portfolio we have outlined previously, in order to deliver the best possible outcomes for investors.”