Three council pension funds have put in up to £10m in sister fund hit by suspension of flagship scheme
Council workers have been left exposed to the underperformance of Neil Woodford’s stock market-listed fund, with a £10m investment by council pension schemes at risk from the fund’s declining share price.
Shares in the Woodford Patient Capital Trust Fund have tumbled 25% to 58p since 3 June, when Woodford made the shock decision to suspend his flagship Equity Income Fund, following a surge in redemptions sparked by bad market bets.
Neil Woodford was once the UK’s biggest star fund manager, personally managing a £25bn mountain of money on behalf of pension funds and other investors at Invesco Perpetual. When he decided to quit Invesco and go it alone in 2013 it was a huge shock for the fund management industry. Invesco shares slumped by 7% on the day he announced his departure.