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.”
Continue reading
This content is not freely available. To access 'The arguments against open-ended funds' you need to be one of the following:
-
ACA student
-
This content is available to ACA students. If you want to start the ACA qualification there are several routes you can take
-
Business and Finance Professional
-
An internationally recognised designation and professional status from the ICAEW.
-
Financial Services Faculty: Investment Management
-
Expert analysis, specialist support and trusted technical guidance for investment management professionals.