300,000 Neil Woodford victims in line for £235m compensation payout

[monabri]

https://www.telegraph.co.uk/money/consu ... pensation/


"Link Fund Solutions (LFS), the administrator of the collapsed Woodford Investment Management vehicle, will pay the redress after the regulator found it had failed to properly manage the liquidity of the income fund"

"Link Group, the parent company of LFS, will help partially fund the redress payment by selling the fund solutions business to Australian investment company Waystone Group.The sale is expected to generate up to £140m towards the payout, with the remainder made up of LFS’s cash, capital and insurance cover."

"The FCA estimates £298m is owed to investors and the proposed settlement would see them receive only 77p for every pound lost."

[DrFfybes]

Great news, but I think "Victims" is rather overemotive

[monabri]

Great news, but I think "Victims" is rather overemotive

Yes, I agree. I copied the Telegraph headline.

[Dod101]

I also think it is a bit rich that Link who were obviously somewhat negligent should be paying for all of this. Is Woodford himself totally innocent?

Dod

[BullDog]

I also think it is a bit rich that Link who were obviously somewhat negligent should be paying for all of this. Is Woodford himself totally innocent?

Dod

He certainly seems to have got off with the mess he created. Living the good life and recently spent a lot of money where he lives. Passing the time in equestrian pursuits.

[scotia]

I'm puzzled. Investors in the Woodford OEIC received about 70% of the initial price when the OEIC was closed down. And now they are getting further compensation. But the unfortunates who purchased the Woodford Patient Capital IT suffered much more significant losses - with apparently no redress. And yet there seem to be those that believe that the IT was the safer structure. Why?

[ADrunkenMarcus]

I'm puzzled. Investors in the Woodford OEIC received about 70% of the initial price when the OEIC was closed down. And now they are getting further compensation. But the unfortunates who purchased the Woodford Patient Capital IT suffered much more significant losses - with apparently no redress. And yet there seem to be those that believe that the IT was the safer structure. Why?

It depends on the criteria. A portfolio manager running an IT is not a forced seller to accommodate redemptions. They can simply run the portfolio as they intend to and people can sell their shares on the market if they prefer.

Best wishes


Mark.

[wanderer]

I suppose the difference with Patient Capital was that you could sell out at any time you wished. If you weren't selling them presumably you were happy to keep running with the risk and think about selling tomorrow instead.

Whereas for the fund, there came a point at which there were no redemptions posdible and this was substantially as a result of the fund manager not keeping to the rules and Link not calling that out. So I think many people who were locked into that fund when the shutters went down could be considered victims as a result of the incompetence of both Link and the fund manager, both of whom should have known better and we're being paid as such.

[scotia]

I'm puzzled. Investors in the Woodford OEIC received about 70% of the initial price when the OEIC was closed down. And now they are getting further compensation. But the unfortunates who purchased the Woodford Patient Capital IT suffered much more significant losses - with apparently no redress. And yet there seem to be those that believe that the IT was the safer structure. Why?

It depends on the criteria. A portfolio manager running an IT is not a forced seller to accommodate redemptions. They can simply run the portfolio as they intend to and people can sell their shares on the market if they prefer.

Best wishes


Mark.

The Woodford Equity Income OEIC investors have already been refunded around 70% of their investment, and it now looks like this judgement against Link Fund Solutions will raise this figure to 77%
Investors in the Woodford Patient Capital IT, which morphed into Schroders UK Public Private Trust, and has now become Schroders Capital Global Innovation Trust, can currently get around 14% of their money back.
I should add that I never owned investments in either of these, so I'll leave it to Woodford investors to decide which was the Safer vehicle .