Savers frozen out of second Woodford fund: But guess what? He is STILL charging them charges

Neil Woodford is nonetheless raking in charges from his doomed funding empire even after barring savers from taking their cash out of a second of his funds.

In one more insult to traders who trusted the once-feted fund supervisor with their cash, the 59-year-old is taking £5,000 a day from clients with financial savings within the Woodford Income Focus fund.

But whereas Woodford continues to money in, traders have been stopped from withdrawing their money from the fund following the implosion of his enterprise.

In yet another insult to investors who trusted Neil Woodford with their money, the 59-year-old is taking £5,000 a day from customers with savings in the Woodford Income Focus fund

In one more insult to traders who trusted Neil Woodford with their cash, the 59-year-old is taking £5,000 a day from clients with financial savings within the Woodford Income Focus fund

Link Fund Solutions, the agency charged with overseeing the administration of Woodford’s operations, froze the Income Focus fund yesterday.

The transfer got here after Woodford resigned from working the fund on Tuesday, having been fired from managing his separate Equity Income fund hours earlier.

But he will stay in place because the supervisor of the £253million Income Focus fund till a successor is discovered, permitting him to maintain raking in charges.

His choice to maintain charging savers mirrors the same transfer at his Equity Income fund.

After Equity Income was frozen in June, signalling the start of the tip for the Woodford empire, he continued to gather £65,000 a day from savers.

He was lastly fired however solely after his now-collapsed agency Woodford Investment Management pocketed charges of £eight.8million because the fund was frozen.

Former pensions minister Baroness Ros Altmann stated: ‘This completely undermines the arrogance of the bizarre investor.

What now for fearful traders 

Equity Income

Investors have been denied entry to their money since June three. The fund will start to be wound up on January 17. 

That is when cash ought to begin to be returned to traders. 

But savers face an extended wait earlier than they get all their a refund. And they’re more likely to get again far lower than they put in.

Income Focus

This fund was frozen yesterday, stopping savers from accessing their cash. Administrators Link say they’ll replace traders inside two weeks.

Until that replace, it is unclear when savers will get their a refund.

Patient Capital Trust

The belief trades on the inventory market. This signifies that traders should buy or promote at any time. But with shares at a document low, savers face heavy losses.

‘Smaller traders depend on a regulatory system that is letting them down. You must marvel the place the regulator was in all this – asleep on the wheel, it appears. 

Why does the Financial Conduct Authority not have powers to cease a supervisor taking charges in a scenario like this?’

Justin Modray, of Candid Financial Advice, added: ‘Woodford really alienated investors by charging management fees on a fund suspended because of his own poor judgement.’

Link’s choice to fireside the fallen supervisor has brought on his empire, Woodford Investment Management, to crumble.

Asset managers Blackrock and Park Hill have been appointed to wind up the Equity Income fund, promoting belongings and returning cash to traders.

Woodford resigned as supervisor of his two different funds, Income Focus and the Patient Capital Trust, and determined to close down his agency.

The downfall of Britain’s most well-known fund supervisor follows years of dismal efficiency.

The Equity Income fund noticed its worth peak at £10.2billion in June 2017 however is now value simply £3billion. 

Income Focus has seen its worth fall from £747million to £253million whereas shares in Patient Capital have fallen 73 per cent.

He has a six-month discover interval to work by way of on the Income Focus fund. If he stays supervisor for all of that point, traders can pay him one other £900,000 in charges.

Link is hoping to hammer out a deal to resolve the long run of the Income Focus fund inside the subsequent 13 days.

 

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