Woodford analysts say investors may lose one-third of their money

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Woodford analysts say investors may lose one-third of their money

Investors of the UK-based money manager Neil Woodford’s investment firm might lose more than £1 billion, roughly four-folds more than the figure if it had reopened the fund in December, estimates made by Woodford had revealed before a shocking closure of the high-profile investment fund that bolted out of the blue and surprised many industry analysts last month.

On top of that, according to the document revealed by Woodford analysts, the LF Woodford Equity Income Fund, with £3 billion ($3.64) under its management, was backed by more than 300,000 investors, a majority of them were smaller savers, would likely to face off a steep loss due to the investment funds’ exposure to hard-to-sell stocks, which in effect had resulted in a failure to meet a flurry of redemption requests following a period of perilous performance alongside asset revaluation.

Besides, the equity fund’s unprecedented move to shut it down last month followed a suspension of four and a half months, which eventually had remarked a calamitous reversal of fortune of the Woodford, one of the most high-profile investment firms in the United Kingdom.

Meanwhile, investors had yet to know the collaterals they would have to grapple with until all of the assets were sold, but the losses would likely to fan the flames of further criticisms over Link’s controversial handling of the fund alongside an unexpected decision to wind it down, analysts suggested.