Neil Woodford

Last updated

Neil Woodford
CBE
Born
Neil Russell Woodford

March 1960 (age 64)
NationalityBritish
Education University of Exeter
London Business School
OccupationFormer fund manager
Known forCollapse of Woodford Equity Income, one of the largest British Investment funds

Neil Russell Woodford CBE (born March 1960) is a former fund manager and the founding partner of the defunct Woodford Investment Management. [1]

Contents

Early life

Woodford was born in March 1960. [2] He was brought up in Berkshire and attended Maidenhead Grammar School. His father was a printer.[ citation needed ] He graduated in Economics and Agricultural Economics from the University of Exeter in 1981. [3]

Early career

Woodford began his career with the Reed Pension Fund and TSB.[ citation needed ] In 1987 he became a fund manager with Eagle Star, then moved to Invesco Perpetual in 1988. He has also pursued postgraduate studies in Finance at the London Business School. [4]

Invesco Perpetual

Woodford ran the Invesco Perpetual Income, and Invesco Perpetual High Income funds, with respectively £10.36 billion [4] and £13.64 billion in assets. [5] Woodford was vocal over the 2012 proposed merger between British defence company BAE Systems and EADS, the European aerospace group, warning that unless there was a “substantial change” in BAE’s strategy, Invesco would have to consider “all options open to us”. [6]

Woodford gained a reputation as Britain’s best fund manager during his 25 years at Invesco, where he avoided the worst effects of the 1990s dot-com bubble and the 2008 financial crisis. [7] [8] He regarded himself as an active, long-term investor, holding shares for an average of about 15 years. [9]

Woodford Investment Management

In April 2014, Woodford left his role as head of UK equities at Invesco Perpetual to set up Woodford Investment Management LLP. [10] [11] In April 2015, he launched Woodford Patient Capital Trust, a listed investment trust. [12] Woodford Investment Management launched a second Equity Income Fund in April 2017, LF Woodford Income Focus. [13] Woodford owned 29% of the ill-fated Utilitywise. [14]

In March 2019, after two years of poor performance during which fund assets contracted by more than £5 billion, the Sunday Times carried out an investigation into the fund. It found the fund held less than 20% of assets in FTSE 100 companies compared to over 50% when it was created, and over 20% of assets were in small Alternative Investment Market companies. [8] [15] On 4 June 2019 trading in Woodford Investment Management’s largest fund (the Woodford Equity Income fund) was suspended. There had been large withdrawals of funds by many investors. [16] Following this, St. James's Place plc terminated Woodford's contract to manage three of its funds, valued at £3.5 billion. [17] The FCA has launched a formal investigation into the suspension. A Woodford spokesperson said: “We can confirm we have been contacted by the FCA, regarding its investigation relating to the events that led to the suspension … and will be co-operating fully with its investigation.”

On 15 October 2019 the fund board announced that Woodford's flagship fund, Woodford Equity Income Fund (WEIF), was to be shut down and Woodford had been removed as investment manager. [18] The following day Woodford announced he would resign from his remaining investment funds and close his investment company in an orderly fashion. [19] Around 300,000 people had invested in the WEIF, including 130,000 through the Hargreaves Lansdown investment site. [20]

On 3 June 2022, a case was filed against the fund's administrators, Link Fund Solutions, claiming that they failed to properly supervise the investments. [21] Further claims against Link were made by Harcus Parker, representing 7,000 investors and seeking an estimated £18m in damages, and Leigh Day, representing 12,000 investors. [22] In April 2023, following a Financial Conduct Authority investigation, the administrators agreed to pay up to £235m to help regulators compensate customers who had lost their savings. [23] The first payments were made in March 2024. [24]

In October 2022, claims firm RGL also filed a High Court claim on behalf of an initial 3,200 investors against Hargreaves Lansdown, which had promoted the WEIF. [25] By November 2024, RGL said the number of people suing Hargreaves Lansdown had almost doubled in two years, to over 5,000, and could reach 10,000 by March 2025. [20] Hargreaves Lansdown had rejected the first set of RGL claims in 2022 "for lack of a substantive basis of claim". [20]

Personal life

Woodford's second marriage is with Madelaine White; they have two children. [26] Woodford lives in Dorset with a second home in Salcombe. [27] Woodford and his wife are keen horse riders and amateur showjumpers. [26]

Honours

In June 2013, in the 2013 Birthday Honours, Woodford was appointed a Commander of the Order of the British Empire (CBE) for services to the economy. [28] In July 2016, he was awarded an honorary fellowship by the London Business School. [29]

Related Research Articles

Invesco Ltd. is an American independent investment management company that is headquartered in Atlanta, Georgia, with additional branch offices in 20 countries. Its common stock is a constituent of the S&P 500 and trades on the New York Stock Exchange. Invesco operates under the Invesco, Invesco Perpetual, and Powershares brand names.

<span class="mw-page-title-main">BlackRock</span> American investment company

BlackRock, Inc. is an American multinational investment company. Founded in 1988, initially as an enterprise risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with US$11.5 trillion in assets under management as of December 31, 2023. Headquartered in New York City, BlackRock has 70 offices in 30 countries, and clients in 100 countries.

<span class="mw-page-title-main">Ameriprise Financial</span> American financial services company

Ameriprise Financial, Inc. is an American diversified financial services company and bank holding company based in Minneapolis, Minnesota. It provides financial planning products and services, including wealth management, asset management, insurance, annuities, and estate planning.

Invesco, based in Henley-on-Thames, Oxfordshire, is one of the largest investment managers in the United Kingdom, managing £91.59bn in assets on behalf of individual clients, fund platforms, nominees, pension funds and other corporate institutions.

<span class="mw-page-title-main">Wellington Management Company</span> American investment management firm

Wellington Management Company is a private, independent investment management firm with client assets under management totaling over US$1 trillion based in Boston, Massachusetts, United States.

<span class="mw-page-title-main">Edinburgh Investment Trust</span> Investment trust company

The Edinburgh Investment Trust Public Limited Company is an investment trust company dedicated to investing in larger companies. Established in 1889, the trust is listed on the London Stock Exchange and is currently a constituent of the FTSE 250.

<span class="mw-page-title-main">M&G</span> British fund management company

M&G plc is a global investment manager headquartered in the City of London. Since its de-merger from Prudential plc, it has been listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

Hargreaves Lansdown plc is a British financial services company based in Bristol, England. It sells funds, shares and related products to retail investors in the United Kingdom. It is the largest investment platform in the UK. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

Grainger plc is a British-based residential property business. It is headquartered in Newcastle upon Tyne and is a constituent of the FTSE 250 Index.

Perpetual Income & Growth Investment Trust was a large British investment trust dedicated to investments in UK equities. Established in 1996, the company was a constituent of the FTSE 250 Index. The chairman was Richard Laing. The fund was managed by Invesco Perpetual. Murray Income Trust absorbed 80% of its assets in November 2020. The other 20% was distributed to shareholders.

Peter Kendal Hargreaves CBE is an English co-founder with Stephen Lansdown of Hargreaves Lansdown, one of the United Kingdom's largest financial services businesses. He is a shareholder of Hargreaves Lansdown but no longer a director or employee. He is a partner in Blue Whale Capital, an investment boutique that was launched in 2017.

M&G Recovery Fund is a British open-ended investment company launched on 23 May 1969 and, as of 31 May 2012, was the third-largest open-ended fund in the UK with £7.4 billion of assets.

Jayesh Manek is a British fund manager. He was the winner of the Sunday Times Fantasy Fund Manager competition in 1994 and 1995, beating thousands of other entrants and winning £100,000 on each occasion. This attracted the attention of John Templeton, who gave Manek £5 million to invest in July 1995 and a further £5 million in June 1996.

Schroders Capital Global Innovation Trust plc, formerly Schroders UK Public Private Trust and before that Woodford Patient Capital Trust, is a British investment trust dedicated to long-term investments predominantly in the United Kingdom.

Sir Richard Peter Pease, 4th Baronet is a British fund manager, who manages the TM Crux European and TM Crux European Special Situations funds for Crux Asset Management, which he founded in 2014.

OppenheimerFunds, Inc. was a global asset manager. As of February 28, 2019, the company managed over $260 billion in assets in over 13,000,000 investor accounts. In May 2019, the company was acquired by Invesco. OppenheimerFunds had 16 investment management teams that oversaw actively managed equity, fixed income, alternative, and multi-asset portfolios, and exchange-traded funds. Customers included financial advisors and wealth managers and their clients, as well as institutional investors, corporations, financial endowments, foundations, and sovereign wealth funds.

Christopher Frederick Hill is a British businessman. He was CEO of Hargreaves Lansdown, a financial services company which is a constituent of the FTSE 250 Index.

<span class="mw-page-title-main">Abrdn</span> UK based investment company

Abrdn plc, formerly Standard Life Aberdeen plc, is a United Kingdom-based global investment company headquartered in Edinburgh, Scotland. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Lindsell Train Limited (LTL) is a British investment management company that focuses on managing equity portfolios. The Lindsell Train Investment Trust (LTI) which currently owns 24% of LTL is publicly traded on the London Stock Exchange.

References

  1. ↑ "Neil Woodford | Fund Manager Fact Sheet | St James's Place, Woodford Investment Management LLP, Old Mutual Global Investors". Citywire.co.uk. Archived from the original on 30 March 2015. Retrieved 29 April 2015.
  2. ↑ "Woodford Investment Management LLP". Companies House. Archived from the original on 3 March 2016. Retrieved 25 February 2016.
  3. ↑ Neate, Rupert (4 June 2019). "Neil Woodford: star fund manager mixes arrogance and humility". The Guardian. ISSN   0261-3077. Archived from the original on 5 June 2019. Retrieved 5 June 2019.
  4. 1 2 Invesco Perpetual Income Fund, Invesco Perpetual
  5. ↑ Invesco Perpetual High Income Fund, Invesco Perpetual
  6. ↑ Invesco voices concern over BAE tie-up Archived 10 November 2012 at the Wayback Machine , Financial Times, 8 October 2012
  7. ↑ Russell, Harriet (9 June 2019). "Neil Woodford: Britain's Buffett seemed to have a magic touch - but was it all an illusion?". Sunday Telegraph. Archived from the original on 9 June 2019. Retrieved 9 June 2019.
  8. 1 2 Meddings, Sabah (11 November 2018). "Neil Woodford forced into £1.4bn sell-off" . Sunday Times. London. Archived from the original on 9 June 2019. Retrieved 9 June 2019.
  9. ↑ Patrick Collinson; Jill Treanor (12 October 2012). "Neil Woodford, Invesco Perpetual's kingmaker". The Guardian. Archived from the original on 12 April 2020. Retrieved 11 June 2019.
  10. ↑ Jackson, Gary. "Neil Woodford unveils new venture | News". Fundweb.co.uk. Archived from the original on 15 June 2015. Retrieved 29 April 2015.
  11. ↑ Lobo, Dylan (25 June 2014). "Woodford raises record £1.6 billion for new fund - Citywire Money". Citywire.co.uk. Archived from the original on 15 June 2015. Retrieved 29 April 2015.
  12. ↑ "Buyers send Woodford's Patient Capital Trust to instant premium". The Telegraph. 21 April 2015. Archived from the original on 15 June 2015. Retrieved 13 June 2015.
  13. ↑ "LF Woodward Income Focus". Archived from the original on 2 April 2019. Retrieved 29 August 2018.
  14. ↑ Neate, Rupert (8 June 2019). "Bright star to black hole: the rise and fall of fund manager Neil Woodford". The Observer.
  15. ↑ Black, Holly (3 March 2019). "Revealed: the real risk of Woodford" . Sunday Times. London. Archived from the original on 9 June 2019. Retrieved 9 June 2019.
  16. ↑ "Top stockpicker Neil Woodford suspends flagship fund". BBC News. 4 June 2019. Archived from the original on 8 June 2019. Retrieved 9 June 2019.
  17. ↑ Angela Monaghan; Kalyeena Makortoff (5 June 2019). "Neil Woodford dropped by major backer after suspending fund". The Guardian. Archived from the original on 9 June 2019. Retrieved 9 June 2019.
  18. ↑ "Neil Woodford's flagship fund to be shut down". BBC News. 15 October 2019. Archived from the original on 20 October 2019. Retrieved 20 October 2019.
  19. ↑ "Neil Woodford closes crisis-hit investment empire". BBC News. 16 October 2019. Archived from the original on 19 October 2019. Retrieved 20 October 2019.
  20. 1 2 3 Kollewe, Julia (17 November 2024). "More than 5,000 Woodford investors now suing Hargreaves Lansdown". Guardian. Retrieved 18 November 2024.
  21. ↑ "Investors seek millions from Woodford fund collapse". BBC News. 2 June 2022. Retrieved 3 June 2022.
  22. ↑ Nunis, Vivienne (3 June 2022). "Investors seek millions from Woodford fund collapse". BBC News. Retrieved 18 November 2024.
  23. ↑ Makortoff, Kalyeena (20 April 2023). "Woodford fund compensation for investors likely to total 77p in the pound". Guardian. Retrieved 18 November 2024.
  24. ↑ Whitbread, Sue (28 March 2024). "Woodford investors receive first redress payments from £230 million scheme". IFA Magazine. Retrieved 18 November 2024.
  25. ↑ "Hargreaves Lansdown hit by lawsuit on behalf of Woodford fund investors". Guardian. 16 October 2022. Retrieved 18 November 2024.
  26. 1 2 Singh, Anita (17 September 2011). "Paxman in planning row over 'unsightly' equestrian centre". The Daily Telegraph. ISSN   0307-1235. Archived from the original on 5 June 2019. Retrieved 5 June 2019.
  27. ↑ Hughes, Janet (5 June 2019). "Gloucestershire financier Neil Woodford apologises to investors". gloucestershirelive. Archived from the original on 5 June 2019. Retrieved 5 June 2019.
  28. ↑ "No. 60534". The London Gazette (Supplement). 15 June 2013. p. 9.
  29. ↑ "LBS honours Olivier Blanchard and Neil Woodford | London Business School". London.edu. 29 July 2016. Archived from the original on 16 August 2016. Retrieved 7 April 2017.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.