Reaction: Woodford IM could be on its last legs

Equity Income fund to be wound up

The winding up of the Woodford Equity Income fund has been described as “a mess”, and will “shake the funds industry to its core”, potentially spelling the end for Woodford Investment Management, according to commentators.

Woodford Patient Capital trust, of which Woodford Equity Income holds 10% of shares, saw its value tumble by 9.8% in the wake of the news. It was trading at just under 34p a share as of 11.30am, representing a 43% discount to NAV, according to Morningstar.  The surprise decision by Link Fund Solutions to wind the fund up was in the best interest of investors, the ACD said. However, Woodford disagreed, as does Darius McDermott, managing director of Chelsea Financial Services. McDermott said the decision, seemingly taken without consultation with WIM, "does seem a little odd and out of ...