Portfolio Adviser - PA July 2019
EDITOR’S LETTER
Sebastian Cheek 2019-07-17 02:49:05
Just when you thought there was nothing more to say on Neil Woodford, something else happens. From the fund’s suspension through to FCA intervention and the roles played by Link Asset Solutions and Hargreaves Lansdown, it’s a story that keeps on giving.
The word ‘hubris’ has been bandied around as people claim the writing had been on the wall for a long time. Hindsight is a wonderful thing but, to blow our own trumpet, Portfolio Adviser flagged liquidity concerns in Woodford’s portfolio back in our October 2017 issue.
In ‘Playing for high stakes’, Kristen McGachey drew attention to the perceived lack of liquidity in both Woodford’s and Invesco’s Mark Barnett’s portfolios by highlighting the large stakes they took in holdings such as Provident Financial.
Fast forward to today and Wood ford’s fund has been suspended for more than a month and Link has announced the freeze will remain for a further 28 days. Savers are trapped in the fund while still paying management fees, thought to be netting Woodford’s firm £100,000 a day.
In this issue we look at how Woodford got into this mess. On p40, Jessica Tasman-Jones tracks the style drift in the former star manager’s portfolio as market cap exposure glided further into unlisted territory. On p20, Sonia Rach assesses the difference between advice and guidance and the role of fund lists in funnelling savers into these products. We also ask five wealth managers if the Wood ford debacle has changed their approach to liquidity (p44).
Elsewhere, we speak with JP Morgan’s Clare Hart, manager of the largest US equity fund run by a woman (p34). We also get the lowdown on the Canada Life multi-asset portfolios from head of multi-asset Craig Rippe (p48). This month’s fund trends puts global bonds in the spotlight while fund selector tackles absolute return.
As ever, we hope you find this issue informative and welcome your feedback.
Sebastian Cheek, editor
sebastian.cheek@lastwordmedia.com
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