Woodford saga will have 'ramifications for active management'

Managers fear for sector's reputation

clock • 4 min read

The highly-publicised suspension of Neil Woodford's flagship LF Woodford Equity Income fund has significantly damaged the UK general public's relationship with investing, according to several investment professionals, who warned there will "clearly be ramifications" for the active management sector.

Woodford, previously touted as a 'star' manager, took the decision alongside authorised corporate director (ACD) Link Fund Solutions to suspend all trading in LF Woodford Equity Income at the start of the month, following mass outflows and liquidity issues. Since the suspension, national media coverage has been extensive, with further developments regarding Hargreaves Lansdown's removal of the fund from its Wealth 50 list, wealth management firm St. James's Place's decision to drop Woodford as manager of a £3.5bn mandate, and increasing industry pressure on Woodford to waive the fund's f...

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