Laura Suter: Addressing the Woodford conundrum

Liquidity and open-ended funds

clock • 4 min read

The issues facing Woodford Equity Income illustrate the problem of having illiquid assets within an open-ended fund at a time when everyone wants to head for the exit, writes Laura Suter

The issues with the Woodford Equity Income fund have been well documented - and certainly no-one needs another comment piece on star managers being out of favour or the problems with striking out on your own. That said, the Woodford situation highlights another important issue - that of liquidity and open-ended funds. Woodford Investment Management has faced a consistent wall of outflows as investors turn their backs on his fund management style and switch to competitors. And you would have to have been living under a rock recently not to have spotted the latest news of the company closi...

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