Hargreaves Lansdown plans for worst-case Woodford scenario - reports

Regular talks held to cope with predicted investor demand

David Brenchley
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Neil Woodford, manager of the Woodford Equity Income fund
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Neil Woodford, manager of the Woodford Equity Income fund

Investment platform Hargreaves Lansdown (HL) is preparing for a "worst-case scenario" when the Woodford Equity Income fund is reopened, which could see the fund wound up, according to reports.

HL is in regular discussions with ACD Link Fund Solutions about how to cope with demand for investors wanting to redeem their units once trading in WEIF allowed, The Telegraph reported. HL's clients have around £1.6bn invested in the shuttered fund. The firm's worst-case scenario is one in which redemptions could not be met, which may lead to the fund being wound up and its assets offloaded in a fire sale. An HL spokesperson told The Telegraph it, "alongside other platforms and administrators, are working with Link to ensure that when the [WEIF] suspension is lifted client demand can ...

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