Neil Woodford Explained

Neil Woodford
Honorific Suffix:CBE
Birth Name:Neil Russell Woodford
Nationality:British
Known For:Collapse of Woodford Equity Income, one of the largest British Investment funds
Education:University of Exeter
London Business School
Occupation:Former fund manager

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

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. 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. 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] He regarded himself as an active, long-term investor, holding shares for an average of about 15 years.[8]

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.[9] [10] In April 2015, he launched Woodford Patient Capital Trust, a listed investment trust.[11] Woodford Investment Management launched a second Equity Income Fund in April 2017, LF Woodford Income Focus.[12] Woodford owned 29% of the ill-fated Utilitywise.[13]

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.[14] [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, 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]

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.[20]

Personal life

Woodford's second marriage is with Madelaine White; they have two children.[21] Woodford lives in Dorset with a second home in Salcombe.[22] Woodford and his wife are keen horse riders and amateur showjumpers.

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. In July 2016, he was awarded an honorary fellowship by the London Business School.[23]

Notes and References

  1. Web site: Neil Woodford | Fund Manager Fact Sheet | St James's Place, Woodford Investment Management LLP, Old Mutual Global Investors . Citywire.co.uk . 29 April 2015 . https://web.archive.org/web/20150330100837/http://citywire.co.uk/manager/neil-woodford/d927 . 30 March 2015 . live .
  2. Web site: Woodford Investment Management LLP. Companies House. 25 February 2016. https://web.archive.org/web/20160303034244/https://beta.companieshouse.gov.uk/company/OC390366/officers. 3 March 2016. live.
  3. News: Neil Woodford: star fund manager mixes arrogance and humility. Neate. Rupert. 2019-06-04. The Guardian. 2019-06-05. en-GB. 0261-3077. https://web.archive.org/web/20190605130626/https://www.theguardian.com/money/2019/jun/04/neil-woodford-fund-manager. 5 June 2019. live.
  4. Invesco Perpetual Income Fund, Invesco Perpetual
  5. Invesco Perpetual High Income Fund, Invesco Perpetual
  6. http://www.ft.com/cms/s/0/a684efa0-108c-11e2-87cc-00144feabdc0.html Invesco voices concern over BAE tie-up
  7. News: Neil Woodford: Britain's Buffett seemed to have a magic touch - but was it all an illusion? . Russell . Harriet . Sunday Telegraph . 9 June 2019 . 9 June 2019 . https://web.archive.org/web/20190609155056/https://www.telegraph.co.uk/business/2019/06/09/neil-woodfordbritains-buffett-seemed-have-magic-touch-illusion/ . 9 June 2019 . live .
  8. News: Neil Woodford, Invesco Perpetual's kingmaker . Patrick Collinson . Jill Treanor . The Guardian . 12 October 2012 . 11 June 2019 . https://web.archive.org/web/20200412015124/https://www.theguardian.com/business/2012/oct/12/neil-woodford-invesco-perpetual-kingmaker . 12 April 2020 . live .
  9. Web site: Jackson . Gary . Neil Woodford unveils new venture | News . Fundweb.co.uk . 29 April 2015 . https://web.archive.org/web/20150615065530/http://www.fundweb.co.uk/news-and-analysis/uk/neil-woodford-unveils-new-venture/2006417.article . 15 June 2015 . live .
  10. Web site: Lobo . Dylan . Woodford raises record £1.6 billion for new fund - Citywire Money . Citywire.co.uk . 25 June 2014 . 29 April 2015 . https://web.archive.org/web/20150615103647/http://citywire.co.uk/money/woodford-raises-record-1-6-billion-for-new-fund/a758799 . 15 June 2015 . live .
  11. Web site: Buyers send Woodford's Patient Capital Trust to instant premium. The Telegraph. 21 April 2015. 13 June 2015. https://web.archive.org/web/20150615143205/http://www.telegraph.co.uk/finance/personalfinance/investing/11550462/Buyers-send-Woodfords-Patient-Capital-Trust-to-instant-premium.html. 15 June 2015. live.
  12. Web site: LF Woodward Income Focus. en-US. 29 August 2018. https://web.archive.org/web/20190402045324/https://woodfordfunds.com/funds/wiff/. 2 April 2019. live.
  13. Web site: Neate . Rupert . Bright star to black hole: the rise and fall of fund manager Neil Woodford . The Observer . 8 June 2019.
  14. News: Neil Woodford forced into £1.4bn sell-off . Meddings . Sabah . Sunday Times . London . subscription . 11 November 2018 . 9 June 2019 . https://web.archive.org/web/20190609155049/https://www.thetimes.co.uk/article/neil-woodford-forced-into-1-4bn-sell-off-kj8djckgg . 9 June 2019 . live .
  15. News: Revealed: the real risk of Woodford . Black . Holly . Sunday Times . London . subscription . 3 March 2019 . 9 June 2019 . https://web.archive.org/web/20190609113053/https://www.thetimes.co.uk/article/revealed-the-real-risk-of-woodford-rr79jvtpm . 9 June 2019 . live .
  16. News: Top stockpicker Neil Woodford suspends flagship fund . BBC News . 4 June 2019 . 9 June 2019 . https://web.archive.org/web/20190608014227/https://www.bbc.co.uk/news/business-48506032 . 8 June 2019 . live .
  17. News: Neil Woodford dropped by major backer after suspending fund . Angela Monaghan . Kalyeena Makortoff . The Guardian . 5 June 2019 . 9 June 2019 . https://web.archive.org/web/20190609051002/https://www.theguardian.com/business/2019/jun/05/neil-woodford-apologises-to-investors-for-suspending-fund . 9 June 2019 . live .
  18. News: Neil Woodford's flagship fund to be shut down . BBC News . 15 October 2019 . 20 October 2019 . https://web.archive.org/web/20191020131321/https://www.bbc.co.uk/news/business-50052945 . 20 October 2019 . live .
  19. News: Neil Woodford closes crisis-hit investment empire . BBC News . 16 October 2019 . 20 October 2019 . https://web.archive.org/web/20191019125457/https://www.bbc.co.uk/news/business-50061968 . 19 October 2019 . live .
  20. News: Investors seek millions from Woodford fund collapse . 2 June 2022 . BBC News . 3 June 2022 .
  21. News: Paxman in planning row over 'unsightly' equestrian centre. Singh. Anita. The Daily Telegraph. 2011-09-17. 2019-06-05. en-GB. 0307-1235. https://web.archive.org/web/20190605130632/https://www.telegraph.co.uk/news/uknews/8769329/Paxman-in-planning-row-over-unsightly-equestrian-centre.html. 5 June 2019. live.
  22. Web site: Gloucestershire financier Neil Woodford apologises to investors. Hughes. Janet. 2019-06-05. gloucestershirelive. 2019-06-05. https://web.archive.org/web/20190605130646/https://www.gloucestershirelive.co.uk/news/cheltenham-news/stock-exchange-superstar-who-moved-2942112. 5 June 2019. live.
  23. Web site: LBS honours Olivier Blanchard and Neil Woodford | London Business School . London.edu . 29 July 2016 . 7 April 2017 . https://web.archive.org/web/20160816223943/https://www.london.edu/news-and-events/news/lbs-honours-olivier-blanchard-and-neil-woodford-1011 . 16 August 2016 . live .

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