Our latest commentary - No Chance of Redemption

On June 3rd, one of the UK’s most high-profile Fund Managers, Neil Woodford, was forced to suspend redemptions from his flagship Equity Income fund after a prolonged period of dire performance. The move triggered an avalanche of criticism and concern from investors in the fund and highlighted the vulnerabilities associated with the (commonly used) fund structure that Mr Woodford had adopted.

In this month’s overview we examine what leads to some fund managers have to ‘gate’ (suspending dealing in) their funds. We assess the impact of such a move on the underlying investor and we also consider what can be done to avoid such funds and the associated consequences.