Tuesday 15 October 2019 6:45 pm

Neil Woodford pulls plug on Woodford Investment Management after sacking

Neil Woodford said this evening that he was closing down Woodford Investment Management after being sacked from his flagship fund earlier today.

Woodford said: “We have taken the highly painful decision to close Woodford Investment Management. We will fulfil our fund management responsibilities to WPCT and the LF Woodford Income Focus Fund and once completed will close the company in an orderly fashion.

“I personally deeply regret the impact events have had on individuals who placed their faith in Woodford Investment Management and invested in our funds.”

The Woodford Patient Capital Trust announced this evening that Woodford Investment Management had “in light of recent events…today served notice of termination in relation to its role as portfolio manager.

“During its three-month notice period, WIM has committed to work collaboratively with the Board and its advisers throughout this transition period in order to protect the interests of shareholders.

Read more: ‘Sorry saga’: Neil Woodford sacked as Equity Income Fund shut down

“The board is in advanced discussions in relation to the ongoing management of the company’s portfolio and expects to be in a position to announce details of the new management arrangements shortly.”

The announcement follows the news that Woodford was today sacked as manager of his flagship Equity Income Fund which is being wound down after it was suspended in June.

It was suspended after it became overwhelmed by investor withdrawals and was forced to gate, leaving investors unable to withdraw their money.

Woodford today criticised the decision by Link Fund Solutions which was tasked with administering the fund’s suspension. 

Read more: Where things went wrong for Neil Woodford

Link wrote to investors this morning to tell them the fund will be wound up and Woodford had been sacked as manager.

“This was Link’s decision and one I cannot accept, nor believe is in the long-term interests of LF Woodford Equity Income fund investors,” Woodford said.

Woodford Patient Capital Trust’s shares closed down 8.6 per cent today at 34p.