Woodford Equity Income's investment process has become "structurally impaired" following its suspension, according to Morningstar's Peter Brunt.
The influential ratings agency has downgraded the fund to ‘negative' as a result, less than a month after it moved to a ‘neutral' stance on the fund. Woodford Equity Income: How we got here Peter Brunt, associate director for equity strategies within the manager research department at Morningstar, said: "By suspending dealing in shares in the fund, Woodford Investment Management has the time to significantly increase the liquidity profile of the portfolio without triggering a fire sale of illiquid assets." However, he added: "With portfolio positioning now focused more on sourcing ...
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